What’s new for Alberta for 2018?
The personal income levels used to calculate your Alberta tax have changed.
The amounts for most non-refundable tax credits have changed.
Alberta benefits for individuals and families
Alberta climate leadership adjustment rebate
This rebate is a non-taxable amount paid quarterly to low and middle-income individuals and families. It is intended to help households adjust to the provincial carbon levy. The quarterly amount is paid separately from the GST/HST credit payments.
You do not need to apply for the Alberta climate leadership adjustment rebate. The Canada Revenue Agency (CRA) will use the information from your return to determine your eligibility and tell you if you are entitled to receive the rebate.
Alberta family employment tax credit
This credit is a non-taxable amount paid to lower and middle-income working families with children under 18 years of age. This program is fully funded by the Province of Alberta. The annual amount is split into two payments and is paid separately from the Canada child benefit.
You do not need to apply for the Alberta family employment tax credit. The CRA will use the information from your Canada child benefits application to determine your eligibility and tell you if you are entitled to the credit.
Alberta child benefit
This benefit is a non-taxable amount paid quarterly to help lower-income families support their family and provide a better quality of life for their children. This program is fully funded by the Province of Alberta.
You do not need to apply for the Alberta child benefit. The CRA will use the information from your Canada child benefits application to determine your eligibility and tell you if you are entitled to the benefit.
File your return
To make sure you get your payments on time, you (and your spouse or common-law partner) need to file your 2018 income tax and benefit return(s) by April 30, 2019. The CRA will use the information from your return(s) to calculate the payments you are entitled to get from these programs.
For more information about the Alberta climate leadership adjustment rebate, the Alberta family employment tax credit and the Alberta child benefit, go to Province of Alberta or call 1-800-959-2809.
Completing your Alberta form
All the information you need to complete Form AB428, Alberta Tax and Credits, is included in this package. Complete one copy of Form AB428 and attach it to your return.
Definitions
Spouse refers to a person to whom you are legally married.
Common-law partner refers to a person who is not your spouse but with whom you are in a conjugal relationship, and at least one of the following conditions applies:
- This person has been living with you in a conjugal relationship for at least 12 continuous months (including any period of time where you were separated for less than 90 days because of a breakdown in the relationship).
- This person is the parent of your child by birth or adoption.
- This person has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on them for support.
End of the year means any of the three following dates:
- December 31, 2018
- the date you left Canada if you emigrated in 2018
- the date of death for a person who died in 2018
Form AB428, Alberta Tax and Credits
Complete Form AB428 if you were a resident of Alberta at the end of the year.
If you were a non-resident of Canada in 2018, complete Form AB428 if one of the following applies:
- You earned income from employment in Alberta
- You received income from a business with a permanent establishment only in Alberta
Complete Form T2203, Provincial and Territorial Taxes for 2018 – Multiple Jurisdictions, instead of Form AB428 if each of the following applies:
- You had income from a business (including income you received as a limited or non-active partner).
- The business has a permanent establishment outside Alberta.
Part A – Alberta non-refundable tax credits
The eligibility criteria and rules for claiming most of the Alberta non-refundable tax credits are the same as those for the federal non-refundable tax credits. However, the value and calculation of most Alberta non-refundable tax credits are different from the corresponding federal credits.
Newcomers to Canada and emigrants
If you reduced your claim for the amounts on lines 300 to 307, 316, 318, 324, and 326 of your federal Schedule 1, you also need to reduce the corresponding provincial amounts on lines 5804 to 5820, 5840, 5844, 5848, 5860, and 5864 in the same manner.
Line 5812 – Spouse or common-law partner amount
You can claim this amount if the rules are met for claiming the amount on line 303 of federal Schedule 1 and your spouse’s or common-law partner’s net income (line 236 of their return, or the amount that it would be if they filed a return) is less than $18,915.
Note
Enter your marital status and your spouse’s or common-law partner’s information (including their net income, even if it is zero) in “Identification and other information” section on page 1 of your return.
Line 5816 – Amount for an eligible dependant
You can claim this amount if the rules are met for claiming the amount on line 305 of federal Schedule 1 and your dependant’s net income (line 236 of their return, or the amount that it would be if they filed a return) is less than $18,915.
Note
If you were a single parent on December 31, 2018, and you choose to include all the universal child care benefit (UCCB) lump-sum payment you received in 2018 in your dependant’s income, include this amount when calculating their net income.
Line 5820 – Amount for infirm dependants age 18 or older
You can claim up to $10,949 for each of your or your spouse’s or common-law partner’s dependent children or grandchildren only if that person had an impairment in physical or mental functions and was born in 2000 or earlier.
You can also claim an amount for more than one person if each one meets all of the following conditions. The person must have been:
- your (or your spouse’s or common-law partner’s) parent, grandparent, brother, sister, aunt, uncle, niece, or nephew
- 18 years of age or older
- dependent on you (or on you and others) because of an impairment in physical or mental functions
- a resident of Canada at any time in the year
Notes
You cannot claim this amount for a person who was only visiting you.
A parent includes someone on whom you were completely dependent and who had custody and control of you when you were under 19 years of age.
A child can include someone older than you who has become completely dependent on you for support and over whom you have custody and control of.
You can claim an amount only if the dependant’s net income (line 236 of their return, or the amount it would be if they filed a return) is less than $18,182.
If you had to make support payments for a child, you cannot claim an amount on line 5820 for that child unless each of the following conditions apply:
- You were separated from your spouse or common-law partner for only part of 2018 because of a breakdown in your relationship.
- You do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return.
How to claim this amount
Complete the calculation for line 5820 using Worksheet AB428. If you are claiming this amount for more than one dependant, enter the total amount on line 5820.
Note
The CRA may ask for a signed statement from a medical practitioner showing the type of impairment, when it began, how long it is expected to last, and that the person is, and will continue to be, dependent on others because of this impairment in physical or mental functions.
Claim made by more than one person
If you and another person support the same dependant, you can split the claim for that dependant. However, the total amount of your claim and the other person’s claim cannot be more than the maximum amount allowed for that dependant.
Line 5833 – Adoption expenses
You can claim this amount if the rules are met for claiming the amount on line 313 of federal Schedule 1.
You can claim up to $12,936 of eligible fees for each child.
Two adoptive parents can split the amount if the total combined claim for eligible expenses for each child is not more than the amount before the split.
Note
Only residents of Alberta are eligible for this amount. If you are not a resident of Alberta, you cannot claim this non-refundable tax credit when calculating your Alberta tax even if you may have received income from a source in Alberta in 2018.
Line 5836 – Pension income amount
You can claim on line 5836 the amount from line 314 of your federal Schedule 1 or $1,456, whichever is less.
Note
Only residents of Alberta are eligible for this amount. If you are not a resident of Alberta, you cannot claim this non-refundable tax credit when calculating your Alberta tax even if you may have received income from a source in Alberta in 2018.
Line 5840 – Caregiver amount
If, at any time in 2018, you (alone or with another person) kept a dwelling where you and one or more of your dependants lived, you may be able to claim up to $10,949 for each dependant.
Each dependant must have been one of the following:
- your (or your spouse’s or common-law partner’s) child or grandchild
- your (or your spouse’s or common-law partner’s) brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was a resident in Canada
Note
You cannot claim this amount for a person who was only visiting you.
Also, each dependant must meet all of the following conditions:
- They were 18 years of age or older when they lived with you in the year.
- They had a net income in 2018 (line 236 of their return, or the amount it would be if they filed a return) of less than $28,358.
- They were dependent on you because of an impairment in physical or mental functions or they are your (or your spouse’s or common-law partner’s) parent or grandparent born in 1953 or earlier.
If you had to make support payments for a child, you cannot claim an amount on line 5840 for that child. However, you may be able to claim an amount for that child on line 5840 (in addition to any allowable amounts on lines 5816 and 5848) if each of the following applies:
- You were separated from your spouse or common-law partner for only part of 2018 because of a breakdown in your relationship.
- You do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return.
How to claim this amount
Complete the calculation for line 5840 using Worksheet AB428. If you are claiming this amount for more than one dependant, enter the total amount on line 5840.
Claim made by more than one person
If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person’s claim cannot be more than the maximum amount allowed for that dependant.
If anyone (including you) can claim this amount for a dependant, no one can claim an amount on line 5820 for that dependant.
If anyone other than you claims an amount on line 5816 for a dependant, you cannot claim an amount on line 5840 for that dependant.
Line 5844 – Disability amount (for self)
You can claim this amount if you met the rules for claiming the amount on line 316 of federal Schedule 1.
If you were 18 years of age or over at the end of the year, enter $14,590 on line 5844.
If you were under 18 years of age at the end of the year, complete the calculation for line 5844 using Worksheet AB428.
Line 5848 – Disability amount transferred from a dependant
You can claim this amount if the rules are met for claiming the amount on line 318 of federal Schedule 1.
Note
If you and your dependant were not residents of the same province or territory at the end of the year, special rules may apply. Contact the CRA to find out how much you can claim.
Line 5856 – Your tuition and education amounts
Complete Schedule AB(S11), Provincial Tuition and Education Amounts.
Transferring amounts
If you do not need to use all of your 2018 tuition and education amounts to reduce your provincial income tax to zero, you can transfer all or some of the unused part to your spouse or common-law partner (who would claim it on line 5864) or your parent or grandparent, or your spouse’s or common-law partner’s parent or grandparent (who would claim it on line 5860).
Note
You can only transfer an amount to your parent or grandparent (or your spouse’s or common-law partner’s parent or grandparent) if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.
The student must complete the “Transfer or carryforward of unused amount” section of Schedule AB(S11) to transfer an amount. The student must also complete any of the following applicable forms to designate who can claim the transferred amount and to specify the provincial amount this person can claim:
- T2202A, Tuition and Enrolment Certificate
- TL11A, Tuition and Enrolment Certificate – University Outside Canada
- TL11B, Tuition and Enrolment Certificate – Flying School or Club
- TL11C, Tuition and Enrolment Certificate – Commuter to the United States
The transferred amount may be different from the amount calculated for the same person on your federal Schedule 11. Enter the provincial amount you are transferring on line 20 of your Schedule AB(S11).
Carrying forward amounts
Complete the “Transfer or carryforward of unused amounts” section of Schedule AB(S11) to calculate the amount you can carry forward to a future year. This amount is the part of your tuition and education amount that you do not need to use for the year and are not transferring to your spouse or common-law partner, your parent or grandparent or your spouse’s or common-law partner’s parent or grandparent.
Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later.
If you are filing a paper return, attach your completed Schedule AB(S11), but do not send your other documents. Keep all your documents in case we ask to see them later.
Line 5860 – Tuition and education amounts transferred from a child
The student may be able to transfer all or part of their unused tuition and education amounts for 2018 to their parent or grandparent, or to their spouse’s or common-law partner’s parent or grandparent.
The maximum amount each student can transfer is $5,000 minus the amounts they use, even if there is an unclaimed part.
How to claim this amount
Enter on line 5860 the total of all provincial amounts that each student has transferred to you as shown on their Form T2202A, TL11A, TL11B, or TL11C.
Notes
The student must have entered this amount on line 20 of their Schedule AB(S11). They may have chosen to transfer an amount that is less than the available provincial amount. The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year.
If you and the student were residents of different provinces or territories on December 31, 2018, special rules may apply. Contact the CRA to find out how much you can claim on line 5860.
Supporting documents
If you are filing electronically or filing a paper return, do not send any documents. Keep all your documents in case we ask to see them later.
Note
The student must attach Schedule AB(S11) to their paper return.
Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2001 or later
The medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2018, and must be expenses that were not claimed for 2017.
The total expenses need to be more than either 3% of your net income (line 236 of your return) or $2,444, whichever is less.
Line 5872 – Allowable amount of medical expenses for other dependants
You can also claim medical expenses for other dependants in addition to the medical expenses claimed on line 5868.
The medical expenses you can claim on line 5872 are the same as those you can claim on line 331 of your federal Schedule 1. They have to cover the same 12-month period ending in 2018, and must be expenses that were not claimed for 2017.
The total expenses for each dependant need to be more than either 3% of that dependant’s net income (line 236 of their return) or $2,444, whichever is less.
Part C – Alberta tax
Line 40 – Alberta tax on split income
If you need to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 3 of Form T1206, Tax on Split Income, to calculate the Alberta tax that applies to this income and enter the amount on line 428 of your return.
For more information on tax on split income, see the Federal income tax and benefit guide.
Line 47 – Alberta additional tax for minimum tax purposes
If you need to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, complete the calculation on line 47 of Form AB428 to determine your Alberta additional tax for minimum tax purposes.
For more information about minimum tax, see the Federal income tax and benefit guide.
Line 49 – Provincial foreign tax credit
If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be able to claim a provincial foreign tax credit.
To claim the credit, complete Form T2036, Provincial or Territorial Foreign Tax Credit.
Enter, on line 49 of Form AB428, the tax credit calculated on line 5 of Form T2036.
Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later.
If you are filing a paper return, attach your Form T2036.
Lines 51 and 52 – Alberta political contributions tax credit
You can claim this credit if you contributed in 2018 to one of the following:
- a candidate
- an Alberta political party
- a leadership contestant
- a nomination contestant
- a constituency association
Notes
They must be registered and meet the criteria established under the Election Finances and Contributions Disclosure Act.
You have to claim this credit on your return or within 90 days after the date of the notice of assessment or reassessment for the tax year.
How to claim this credit
Enter your contributions on line 51 of Form AB428 and calculate the amount to enter on line 52 as follows:
- For contributions of more than $2,300, enter $1,000 on line 52 of Form AB428.
- For contributions of less than $2,300, complete the calculation for line 52 on Worksheet AB428.
Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later.
If you are filing a paper return, attach the official receipt signed by an official of the registered party, the registered constituency association, or the registered candidate for each contribution.
Lines 54 to 56 – Alberta investor tax credit
You can claim this refundable tax credit if you acquired shares from a venture capital corporation (VCC), eligible business corporation (EBC) or community economic development corporation (CEDC) registered in Alberta, at any time in 2018 (that you did not claim on your 2017 return) or in the first 60 days of 2019. Your tax credit certificate shows the date you bought your shares under ‘‘Investment date.’’
If you purchased VCC, EBC or CEDC shares in 2018, enter, on line 54 of Form AB428, the total of all tax credit amounts shown on your tax credit certificates.
If you purchased VCC, EBC or CEDC shares in the first 60 days of 2019, you can elect to claim the tax credit on your 2018 return or you can claim it on your 2019 return. If you are electing to claim the credit in 2018, enter, on line 55 of Form AB428, the total of all tax credit amounts shown on your tax credit certificates.
The amount of the credit is 30% of your investment up to a maximum of $60,000 in 2018. Any unused amount that exceeds the $60,000 maximum can be used in the following four tax years up to a maximum of $60,000 per tax year. The unused amount will be shown on your 2018 notice of assessment or reassessment.
The maximum Alberta investor tax credit amount that can be claimed in any five year period is $300,000.
Supporting documents
If you are filing electronically or filing a paper return, do not send any documents. Keep all your documents in case we ask to see them later.
For questions about the Alberta investor tax credit, contact the venture capital corporation, eligible business corporation or community economic development corporation that issued your shares, your stockbroker, or your investment advisor.
For more information on the Alberta investor tax credit, go to Alberta Investor Tax Credit (AITC).
Alberta stock savings plan tax credit
If you had any unused stock savings plan tax credit amount to be applied in 2018, attach a completed Form T89, Alberta Stock Savings Plan Tax Credit.
Enter, on line 479 of your return, the amount from line 3 of Form T89. If you are also claiming the Alberta investor tax credit, enter the total of both credits.
Supporting documents
Attach your Form T89 to your paper return.