Information required to determine potential carry-forward grants and bonds

Contributions to RDSPs are capped to a total of $200,000. The government matches contributions with grants and bonds up to specified limits which are income and age tested. The income considered in any year is the taxable income 2 years prior. If the beneficiary is under 19, the income considered is that of the dependent's caregiver's family income, otherwise, the beneficiary's family income is considered. If no income is entered, the income is considered to be above the maximum for grants and bonds. It is therefore very important for children to file a tax return from the age of 17. No grants or bonds are paid when the beneficiary is 49 or over, and no contributions are allowed past the age of 59.

You are asked for past income information and past contributions if necessary, so that we can properly calculate any carry-forward amounts in the future. Future income information will be obtained from any INCOME you entered for yourself and spouse if either of you is the beneficiary, or for the dependent, if they are the beneficiary (when past age 19).

CDSB: The Canada Disability Savings Bond. No contribution is required to receive up to $1000 in one year. The bond will be paid directly into the plan at the end of the year if the family income is less than $30,000 (considering the 2017 tax year in 2019). The family income limit will be $30,450 considering the 2018 tax year in 2020 and $31,120 considering the 2019 tax year in 2021. A partial bond will be paid if the family income is higher but no more than $45,916 (considering the 2017 tax year in 2019). The total lifetime CDSBs received is capped to $20,000.

CDSG: The Canada Disability Savings Grant. If the family income is less than $91,831 (considering the 2017 tax year in 2019), a 300% grant is given for the first $500 contribution and a 200% grant is given for the next $1000 contribution. This means you can get up to $3,500 for a $1,500 contribution. If the family income is greater than $91,831, a 100% grant is awarded up to a $1000 contribution. The total lifetime CDSGs received is capped to $70,000.

Carry-forwards. CDSGs and CDSBs can be earned before the RDSP is opened from the year the beneficiary became eligible for the Disability Tax Credit to a maximum of 10 years. Up to $10,500 can be paid in grants and bonds in any year. This means that when you open an RDSP, before the end of the year the beneficiary turns 49, the government will credit you with past bonds and grants you would have been eligible for had you opened up the RDSP the year the beneficiary was eligible for the Disability Tax Credit (or up to 10 years ago) up to $10,500/year. Contributions in subsequent years will also allow carry-forward amounts to be paid as long as any remain (and before the end of the year the beneficiary turns 49). Grants and bonds are assigned in a particular order, starting with the oldest eligible first, with first all the bonds, then all the 300% grants, then all the 200% grants and lastly all the 100% grants.

For the current year, you can indicate this years contribution already made and if the CDSB and CDSG were already received or not. Make sure to update that when the grants and bond have been deposited to the account.

This form will have to be updated every year.