A.T. Financial Newsletter
Attention parents of surly teens!
If you have a Registered Education Savings Plan (RESP) or are thinking of opening one and your child is turning 15, 16, or 17 this year, there are some steps we may need to take to ensure your plan qualifies to receive the Canada Education Savings Grant (CESG).

In the year they turn 16 and 17, kids are eligible for the CESG only if:
 1. Their RESPs have received at least $2,000 in contributions before they turned 15 (this refers to the calendar year in which they turn 15, not the actual birthdate) OR,
 2. Their RESPs received at least $100 in contributions in any four years before the year they turned 15.

Note that your plan does not have to meet both requirements, only one. That said, if any portion of those minimum contributions was withdrawn from the account, they lose their CESG eligibility.

In other words, if you wait until your child is 16 or 17 with the intention of opening a kind of "last-minute" RESP, the plan won't be eligible for any grant money. Otherwise, as long as you've been contributing regularly, you should be okay.

The MONEY file
Please note that these special rules apply only to eligibility for the Canada Education Savings Grant. They do not apply, for example, to RESP holders in Quebec who qualify for the Quebec Education Savings Incentive (QESI).

If you have not yet started an RESP and you have a teen turning 15 this year, be sure to contact us soon. Your plan can still qualify for the CESG as long as you open it and contribute before the end of the year.
Selected for review?! Don't panic
Each year, the Canada Revenue Agency (CRA) flags selected tax returns for extra scrutiny, in part to ensure compliance but also to educate taxpayers in areas prone to mistakes. You can be randomly selected whether your return is submitted on paper, electronically, or through a professional tax preparation service or accountant.

So if you receive a letter indicating your income tax return has been "selected for review," stay calm. It's not the same as an audit. It just means your tax return has been flagged for a more thorough investigation.

Being selected for review could lead to an audit, but as long as you can support your claims with proper documentation, you probably don't have anything to worry about. Even if you knowingly completed your tax return incorrectly, the Voluntary Disclosures Program enables you to come clean, correct your return, and not face legal consequences.

To see a list of the most common tax return mistakes (and those most likely to lead to an adjustment), visit cra-arc.gc.ca and search for "common adjustments."

If you're preparing for a review or audit and have questions about your investment income or any related tax slips, give us a call. For tax-planning advice specific to your situation, please call on a qualified tax advisor.
For more information,
please contact us at

(647) 833-2782