There are three ways to file income taxes
You can file your taxes electronically (online) using NETFILE (an electronic tax-filing service that sends your tax return directly to the Canada Revenue Agency.
RDSP
Introduction
A Registered Disability Savings Plan (RDSP) is a long-term savings plan that helps Canadians with disabilities save for the future. With an RDSP, you may be able to get up to $90,000 in government grants and bonds to help with your long-term savings.
To get the grants and bonds, you must open your RDSP before or by December 31 in the year in which you turn 49. You are not eligible for grants and bonds after age 49. You can open an RDSP up until the year you turn 59.
You and your loved ones can deposit up to $200,000 in the account without an impact on your eligibility for any federal, and most provincial, benefits.
If you have a low income and cannot save, the government will still save for you! ‘Low income’ for 2023 means people living on less than $34,863 a year. The federal government will contribute up to $1000 each year for 20 years through a program called the Canada Disability Savings Bond.
Benefit information
This process may take you several months from start to finish
This website helps you go through the application process step-by-step. You can take your time on each step. You can leave the site and come back later when you have more time, energy, and the documents you may need in a step.
7 great reasons why you should open an RDSP
- You choose where to save and invest your money. Almost all financial institutions (such as banks or credit unions) offer RDSPs to Canadians.
- The government contributes a lot! Depending on your family income, for every $1 saved, they will match up to $3, through a program called the Canada Savings Grant. For instance, if $1500 is deposited in an RDSP, the government could match with up to $3500 per year.
- For people living on a low income (less than $31,120 in 2023), the government will invest $1000 each year for 20 years. This is through a program called the Canada Disability Savings Bond. People living on an income between $34,853 and $53,359 can still receive a partial bond.
- In most cases, you can save money in an RDSP without affecting other government benefits you receive. To find out how your province treats the RDSP, go to Provincial Resources - RDSP.
- Anyone can contribute to your RDSP -- family, friends, neighbours, charities, foundations, and organizations. This gives people who want to help a way to do so! All they need is your permission.
- You can spend RDSP withdrawals as you wish. You can decide where and when to spend the money. Early RDSP withdrawals will result in penalties.
- The RDSP can grow your savings a lot! If a person saves $1,500 a year for more than 30 years, they may find their RDSP worth nearly half a million dollars! To see how your RDSP will grow based on what you put in, use the RDSP Calculator.
Read about how other people use the RDSP at RDSP Stories. You can enter their information into the RDSP Calculator to see how much each person could get.
Other ways to plan for your future
An RDSP allows you to save money for the future. There are other supports for planning for the future, like wills, trusts, estate planning, and supported decision-making. To learn more, visit Plan Institute’s Workshops and Webinars.
The RDSP is just one valuable tool along the path to a better life. Most people will always need supports from other federal and provincial programs. To learn more about these programs, go to the Benefits wayfinder.
Resources
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