Question

Which is not included in an Educational Assistance Payment, and why?

a) Subscriber contributions, because they are not taxable

b) Canada Education Savings Grant, because it is returned to the subscriber

c) Canada Learning Bond, but it is never taxable

d) Investment income, because it is taxable

Answer 1

Answer,

Option A. Subscriber contribution not inclueded in an Educational Assistance Payment.Because,Contributed amounts are made by the subsribers are not taxable ( after tax fund) and this types of funds deemed to be non taxable at the time of withdrawal.It canot be generating any tax income for the system. so it is not included in the educational assistance payment.

And other education grand, learning bond , investment income etc are tax sheltered untill the time of withdrawal.