Both the Registered Disability Savings Plan (RDSP) and Registered Education Savings Plan (RESP) offer generous, income adjusted grants and bonds. To determine the correct government contributions for these accounts, the Canada Revenue Agency (CRA) pulls data directly from tax returns. But how does the government verify a family’s income? One might assume they use the most recent tax return, when if fact they actually look back two in the past. For example, to calculate grant and bond entitlements for 2026, the CRA would review 2024 tax returns.
Why the delay?
The delay is a deliberate part of the grant and bond eligibility procedure. Tax season in Canada happens in the spring, and if the government used the previous year’s income (2025) to calculate benefits for early 2026, many people wouldn’t have filed their taxes or had them processed yet. By looking back two years, the CRA ensures they have a verified and processed all relevant income figures, avoiding the need to claw back money if income levels are higher than expected.
What if taxes from two years ago have not been filed?
Even if there is no income to report, it is imperative that the adult beneficiary (or their parents/guardians if the beneficiary is aged 18 or younger) file their tax returns each year to provide the CRA with the data necessary to determine grant and bonds amounts. If taxes have not been filed, then the government will withhold all grants and bonds payments until the missing tax returns are filled assessed.
Once the beneficiary turns 19 years of age, the CRA stops looking at the income of the parents or guardians and starts looking at the beneficiary’s income from two years prior. This is why it is important for the beneficiary to file tax returns starting at a minimum of age 17, even if they have zero income.
The retroactive catch-up provision
The good news is that if taxes have not been filed for a few years, the government allows a carry forward provision on all unused grant and bond entitlements for up to 10 years. There are limits of how much can be claimed in a year, namely, $10,500 in grants and $11,000 in bonds.
Check out the RDSP Grant Maximizer Calculator that helps figure out a contribution strategy to catch up on grants as quickly as possible.