Sarah and David have two children, Emily (age 5) and Liam (age 2). They have consistently contributed the maximum amount to Emily's RESP every year since her birth. For Liam's RESP, they made a one-time contribution of $2,500 this year. Assuming all contributions were made on January 1st of the contribution year, what is the maximum amount of Canada Education Savings Grant (CESG) they can receive for Liam's RESP this calendar year?

Question: Sarah and David have two children, Emily (age 5) and Liam (age 2). They have consistently contributed the maximum amount to Emily's RESP every year since her birth. For Liam's RESP, they made a one-time contribution of $2,500 this year. Assuming all contributions were made on January 1st of the contribution year, what is the maximum amount of Canada Education Savings Grant (CESG) they can receive for Liam's RESP this calendar year?

Answer options: ✅ $500

• $750
• $1,000
• $1,250

Correct answer: $500

Explanation: The basic CESG is 20% on the first $2,500 of annual contributions, up to a maximum of $500 per beneficiary per year. Unused CESG room from previous years can be carried forward. Liam receives 20% of $2,500 = $500.