The Registered Disability Savings Plan (RDSP) is one of the most powerful investment tools available. For individuals with a family net income that fits within the criteria, you can receive up to $1,000 per year in the Canadian Disability Savings Bond (CDSB).
How are bonds calculated?
Bonds are calculated based off of your net income, or your family net income. What makes this program also unique is the fact that bonds are retroactive up to 10 years. So depending on your Disability Tax Credit eligibility and your family net income, it may be possible to open an RDSP and receive up to $10,000 in bonds.
Bonds are calculated based off your family net income of 2 prior tax years. For example, to calculate bonds that may be available to you in 2022, this would be based on your net income / family net income of 2020. There is a threshold each year in which your family net income must be under in order to receive the full $1,000. If it is above that, but below the high threshold, the bonds will be pro-rated accordingly.
Thresholds for the Canadian Disability Savings Bond
| Year | Low Threshold | High Threshold | Your Family Net Income (FNI) |
| 2022 | $32,797 | $50,197 | Your 2020 Family Net Income (Line 23600 of your 2020 income tax return + line 23600 of your spouse’s 2020 income tax return, if applicable). |
| 2021 | $32,028 | $49,020 | Your 2019 Family Net Income (Line 23600 of your 2019 income tax return + line 23600 of your spouse’s 2019 income tax return, if applicable). |
| 2020 | $31,771 | $48,535 | Your 2018 Family Net Income (Line 236 of your 2018 income tax return + line 236 of your spouse’s 2018 income tax return, if applicable). |
| 2019 | $31,120 | $47,630 | Your 2017 Family Net Income (Line 236 of your 2017 income tax return + line 236 of your spouse’s 2017 income tax return, if applicable). |
| 2018 | $30,450 | $46,605 | Your 2016 Family Net Income (Line 236 of your 2016 income tax return + line 236 of your spouse’s 2016 income tax return, if applicable). |
| 2017 | $30,000 | $45,960 | Your 2015 Family Net Income (Line 236 of your 2015 income tax return + line 236 of your spouse’s 2015 income tax return, if applicable). |
| 2016 | $26,364 | $45,282 | Your 2014 Family Net Income (Line 236 of your 2014 income tax return + line 236 of your spouse’s 2014 income tax return, if applicable). |
| 2015 | $26,021 | $44,701 | Your 2013 Family Net Income (Line 236 of your 2013 income tax return + line 236 of your spouse’s 2013 income tax return, if applicable). |
| 2014 | $25,584 | $43,953 | Your 2012 Family Net Income (Line 236 of your 2012 income tax return + line 236 of your spouse’s 2012 income tax return, if applicable). |
| 2013 | $25,356 | $43,561 | Your 2011 Family Net Income (Line 236 of your 2011 income tax return + line 236 of your spouse’s 2011 income tax return, if applicable). |
| 2012 | $24,863 | $42,707 | Your 2010 Family Net Income (Line 236 of your 2010 income tax return + line 236 of your spouse’s 2010 income tax return, if applicable). |
In order to get the full $1,000 bond for the 2022 tax year, you must calculate your 2020 family net income (line 23600 of your income tax return, and if applicable, + line 23600 of your spouse’s tax return). If this equates to being under $32,797 – then you would receive $1,000 from the government in your RDSP. If your family net income for 2020 is between $32,797 and $50,197, the government will pro-rate your bonds accordingly. Ultimately, if your family net income for 2020 is above $50,197, you would not receive any bonds from the government.
The maximum amount of retroactive bonds that can be paid to you in a single year is $10,000. This would be if you fall within the thresholds allowed by the government, and if y our Disability Tax Credit application was retroactively approved up to 10 years.
Orthogonal Capital Management specializes in the Registered Disability Savings Plan. We have invested significantly in our technology to help give a clear view to our clients what is available to them, and more importantly how to maximize it. If you are currently eligible for the Disability Tax Credit and under the age of 49, open an RDSP today!