Determining the QESI Amount
Each year, a registered education savings plan (RESP) account can receive an amount equal to 10% of the net contributions paid into it over the course of a year, up to a maximum of $250. The net contributions for the year correspond to the contributions paid in the year that were not withdrawn from the RESP at the time the trustee applied for the tax credit.
In addition, since 2008, accumulated rights from previous years can increase the basic amount, up to a maximum of $250 per year. However, the basic amount cannot exceed $500 per year.
Example of the calculation of the credit to which accumulated rights are added:
In 2013, Ms. Stone opens an RESP account for Matthew, her grandson, to save money for his education. She does not make any contributions in 2013 or in 2014. In 2015, however, she contributes $5,000. Because of the accumulated rights for 2013 and 2014, the contribution gives entitlement to a basic amount of $500. In 2016, Revenu Québec will pay $500 into the RESP.
To help low-income and middle-income families, an amount of up to $50 per year, calculated on the basis of family income, may be added to the basic amount.
Example of the calculation of the credit to which an amount is added:
In 2015, Mr. Hogan opens an RESP account for his young son John, and deposits $1,000. In 2016, Revenu Québec will pay $100 to the RESP, which corresponds to 10% of the contributions made by Mr. Hogan in 2015. As the annual family income of John's parents is $30,000, an amount of $50 will be added to the basic amount of $100. Therefore, a tax credit of $150 will be paid into John's RESP in 2016.
Under the Québec education savings incentive (QESI), the total cumulative amount that can be granted to a beneficiary (for all of the beneficiary's RESPs) cannot exceed $3,600.