If RESPs are great enough already, there are other benefits if your child is a resident of Quebec. You could earn up to $3,600/child as part of the Quebec Education Savings Incentive (QESI). This grant is provided as a refundable tax credit from Revenu Québec that is deposited directly into your RESP.
The Quebec Education Savings Incentive is a provincial grant designed to encourage Quebec residents to save for their children’s post-secondary education through a Registered Education Savings Plan. QESI works similar to the federal education savings grants in that you will receive a percentage based on your contributions if eligible.
For QESI, you will receive a grant equalling 10% of your annual RESP contributions – up to $250 per year, with a lifetime maximum of $3,600 per child. And, depending on your income, you can earn an extra 5-10% of the first $500 contributed each year.
To maximize the QESI grant, contributors can aim to reach the annual contribution limit of $2,500, which would earn the basic grant of 10%. If contributors haven’t used the full grant from previous years, they can carry forward unused grant rooms, allowing them to catch up on contributions and receive up to 10% extra on these amounts.
Contributors can benefit from income-based supplements that increase the grant amount. For example, lower-income families may receive additional supplements of 10% or 20%, boosting the overall grant to as much as 20% or 30% of their contributions.
By strategically contributing to an RESP and taking full advantage of these opportunities, families can significantly enhance their educational savings and reduce future tuition costs.
Our Specialists will ensure you get all the grants you're entitled to.
Applying for the Quebec Education Savings Incentive (QESI) is easy
Just follow these simple steps:
- If you haven’t already, register the birth/adoption of your child and apply for a birth certificate
- Apply for a Social Insurance Number (SIN) for the child. You can apply through this link for a SIN
- Open a Registered Education Savings Plan (RESP)
Once an RESP for your beneficiary is set up, Embark will apply annually to Revenu Québec for the QESI monies to be paid into your RESP. You are not required to fill out any paperwork or make an application for the QESI on your income tax return.
Unlocking the Benefits of QESI
To unlock the benefits of QESI, the child or beneficiary must be a Quebec resident and have an RESP. The residency requirement ensures the incentive is available to those who live in the province. When selecting an RESP provider, consider factors like the fees charged, investment options, and the provider’s reputation. Lower fees can potentially lead to higher net returns on your investments and a diverse array of investment options help with risk management and growth potential. A reputable RESP provider ensures your savings are managed responsibly and securely.
To make contributions eligible for QESI, deposit funds into your RESP through a qualified provider. The RESP provider takes care of the application process for the QESI grant by applying to Revenue Quebec on your behalf. Once approved, the grant amount is added directly to your RESP, boosting the overall savings and enhancing the financial support available for the beneficiary’s post-secondary education.
By consistently contributing to the RESP and leveraging QESI, families can significantly increase their education savings, providing a substantial financial cushion for future educational expenses.
Frequently Asked Questions
Who is eligible for the QESI program?
Eligibility for the QESI program requires the child and beneficiary to be residents of Quebec and have a Registered Education Savings Plan (RESP).
What are the contribution limits for maximizing the QESI grant?
The contribution limits for maximizing the QESI grant include a basic annual grant of up to $250 on the first $2,500 contributed to the RESP.
Can I use unused QESI grant amounts from previous years?
Yes, unused QESI grant amounts from previous years can be carried forward and used in future years.
How does the QESI income-based supplement work?
The QESI income-based supplement provides additional grant amounts to lower-income families, increasing the potential grant.
What happens to my QESI grant if my child decides not to pursue post-secondary education?
If the RESP isn’t used because the child decides not to pursue post-secondary education, the QESI grant will be repaid to the government.
Maximize the benefits of the QESI grant with an Embark RESP account today!
Embark is Canada’s education savings and planning company. The organization aims to help families and students along their post-secondary journeys, giving them innovative tools and advice to take hold of their bright futures and succeed.
