Information for Residents of Alberta

5009-PC(E) Rev. 15

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Table of contents

What's new for 2015?

The Alberta non-refundable tax credits have been increased to offset inflation.

Four new income tax rates have been added for taxable income over $125,000.

Form AB428, Alberta Tax and Credits, reflects these changes.

General information

Alberta family employment tax credit

This credit is a non-taxable amount paid to families with working income that have children under 18 years of age. This program is fully funded by the Province of Alberta. The amount is split into two payments and is paid separately from the Canada child tax benefit.

For more information on the payment amounts, see Booklet T4114, Canada Child Benefits.

There is no need to apply separately to get payments under this program. We will use the information from your Canada child benefits application to determine your eligibility for the program.

File your tax return – You (and your spouse or common-law partner) should file your 2015 tax return(s) as soon as possible. The information you give on your return(s) will determine the amount you will receive in July 2016 and January 2017.

For more information, call 1-800-959-2809.

Completing your Alberta form

You can download and print a copy of Form AB428, Alberta Tax and Credits, which you need to calculate your Alberta tax and credits. Attach a completed copy of Form AB428 to your return.

The following information will help you complete Form AB428.

The terms spouse and common-law partner are defined in the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2015, the date you left Canada if you emigrated in 2015, or the date of death for a person who died in 2015.

Tax Tip

Many rules for calculating Alberta tax are based on the federal Income Tax Act. As a result, you should calculate your federal tax first.

Form AB428, Alberta Tax and Credits

Complete Form AB428 if you were a resident of Alberta at the end of the year.

If you had income from a business (including income you received as a limited or non-active partner), and the business has a permanent establishment outside Alberta, complete Form T2203, Provincial and Territorial Taxes for 2015 – Multiple Jurisdictions, instead of completing Form AB428.

You also have to complete Form AB428 if you were a non-resident of Canada in 2015 and you earned income from employment in Alberta or received income from a business with a permanent establishment only in Alberta.

Step 1 – Alberta non-refundable tax credits

The eligibility criteria and rules for claiming the Alberta non-refundable tax credits are the same as for the federal non-refundable tax credits. However, the value and calculation of some Alberta non-refundable tax credits are different from the corresponding federal credits.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 306, 315, 316, 318, 324, and 326 of your federal Schedule 1, you have to prorate the corresponding provincial amounts on lines 5804 to 5820, 5840, 5844, 5848, 5860, and 5864.

Line 5804 – Basic personal amount

Claim $18,214.

Line 5808 – Age amount

You can claim this amount if you were 65 years of age or older on December 31, 2015, and your net income (line 236 of your return) is less than $71,624.

If your net income is:

  • $37,784 or less, enter $5,076 on line 5808; or
  • more than $37,784 but less than $71,624, complete the calculation for line 5808 on the Provincial Worksheet.
Tax Tip

You may be able to transfer all or part of your age amount to your spouse or common-law partner or to claim all or part of his or her age amount. For more information, read line 5864.

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 his or her return, or the amount that it would be if he or she filed a return) is less than $18,214.

Complete the calculation on Form AB428, and enter the amount on line 5812.

Note

Enter your marital status and the information about your spouse or common-law partner (including his or her net income, even if it is zero) in the "Identification" area 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 his or her return, or the amount that it would be if he or she filed a return) is less than $18,214.

Complete the calculation on Form AB428, and enter the amount on line 5816.

Note

If you were a single parent on December 31, 2015, and you choose to include all universal child care benefit amounts you received in 2015 in the income of your dependant, include this amount in the calculation of his or her net income.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim this amount if the rules are met for claiming the amount on line 306 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $17,508.

Note

You may be able to claim an amount on this line even if you claimed an amount on line 5816.

Complete the calculation for line 5820 on the Provincial Worksheet.

Line 5824 – CPP or QPP contributions through employment

Enter on this line the amount you claimed on line 308 of your federal Schedule 1.

Line 5828 – CPP or QPP contributions on self-employment and other earnings

Enter on this line the amount you claimed on line 310 of your federal Schedule 1.

Line 5832 – Employment insurance premiums through employment

Enter on this line the amount you claimed on line 312 of your federal Schedule 1.

Line 5829 – Employment insurance premiums on self-employment and other eligible earnings

Enter on this line the amount you claimed on line 317 of your federal Schedule 1.

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 on line 5833 up to $12,457 of eligible adoption expenses for each child.

The two adoptive parents can split the claim for adoption expenses as long as the combined total claim for each child is not more than the eligible 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 in calculating your Alberta tax even though you may have received income from a source inside Alberta in 2015.

Line 5836 – Pension income amount

You can claim this amount if you met the rules for claiming the amount on line 314 of federal Schedule 1.

The amount you can claim on line 5836 is the amount on line 314 of your federal Schedule 1 or $1,402, 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 in calculating your Alberta tax even though you may have received income from a source inside Alberta in 2015.

Line 5840 – Caregiver amount

You can claim this amount if the rules are met for claiming the amount on line 315 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $27,307.

Complete the calculation for line 5840 on the Provincial Worksheet.

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 $14,050 on line 5844.

If you were under 18 years of age at the end of the year, you may be eligible to claim a supplement up to a maximum of $10,543 in addition to the base amount of $14,050. Complete the calculation for line 5844 on the Provincial Worksheet.

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.

Complete the calculation for line 5848 on the Provincial Worksheet.

Line 5852 – Interest paid on your student loans

Enter on this line the amount you claimed on line 319 of your federal Schedule 1.

Line 5856 – Your tuition and education amounts

Complete Schedule AB(S11), Provincial Tuition and Education Amounts.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them at a later date. 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 at a later date.

Transferring and carrying forward amounts

You may not need all of your 2015 tuition and education amounts to reduce your provincial income tax to zero. In this case, you can transfer all or some of the unused part to one person, either your spouse or common-law partner (who would claim it on line 5864) or your or your spouse's or common-law partner's parent or grandparent (who would claim it on line 5860).

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.

Complete the "Transfer/Carryforward of unused amount" section of Schedule AB(S11) to calculate the provincial amount available to transfer, as well as Form T2202A, Tuition, Education, and Textbook Amounts Certificate, TL11A, Tuition, Education, and Textbook Amounts Certificate – University Outside Canada, TL11B, Tuition, Education, and Textbook Amounts Certificate – Flying School or Club, or TL11C, Tuition, Education, and Textbook Amounts Certificate – Commuter to the United States, to designate who can claim the transferred amount and to specify the amount this person can claim.

This 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).

Tax Tip

If you are transferring an amount to a designated individual, only transfer the amount this person can use. That way, you can carry forward as much as possible to use in a future year.

Complete the "Transfer/Carryforward of unused amount" section of Schedule AB(S11) to calculate the amount you can carry forward to a future year. This amount corresponds to the part of your tuition and education amounts you do not need to use (and do not transfer) for the year.

Line 5860 – Tuition and education amounts transferred from a child

You can claim these amounts if the rules are met for claiming an amount on line 324 of federal Schedule 1.

Enter on line 5860 the total of all provincial amounts that each student has transferred to you as shown on his or her Form T2202A, TL11A, TL11B, or TL11C.

Notes

The student must have entered this amount on line 20 of his or her Schedule AB(S11). He or she 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, 2015, special rules may apply. Contact the Canada Revenue Agency to determine the amount you can claim on line 5860.

Other rules may apply if the student has a spouse or a common-law partner. Read line 324 in the General Income Tax and Benefit Guide.

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 at a later date. The student must attach Schedule AB(S11) to his or her paper return.

Line 5864 – Amounts transferred from your spouse or common-law partner

You can claim these amounts if the rules are met for claiming an amount on line 326 of federal Schedule 1.

Complete Schedule AB(S2), Provincial Amounts Transferred From Your Spouse or Common-law Partner, and attach a copy to your return.

Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 1998 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 2015, and no one claimed them on a 2014 return.

However, your total expenses have to be more than either 3% of your net income (line 236 of your return) or $2,353, whichever is less.

Line 5872 – Allowable amount of medical expenses for other dependants

In addition to the medical expenses claimed on line 5868, you can also claim medical expenses for other dependants.

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 2015, and no one claimed them on a 2014 return.

The total expenses for each dependant have to be more than either 3% of that dependant's net income (line 236 of his or her return) or $2,353, whichever is less.

Complete the calculation for line 5872 on the Provincial Worksheet.

Line 5896 – Donations and gifts

Enter the amounts from lines 345 and 347 of your federal Schedule 9 and multiply them by the rates on lines 27 and 28 of Form AB428.

Step 2 – Alberta tax on taxable income

Enter on line 31 your taxable income from line 260 of your return. Complete the appropriate column depending on the amount entered.

Step 3 – Alberta tax

Line 40 – Alberta tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the Alberta tax that applies to this income.

Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. For more information on tax on split income, see the General Income Tax and Benefit Guide.

Line 48 – Alberta additional tax for minimum tax purposes

If you have to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, you will also have to determine your Alberta additional tax for minimum tax purposes.

To do this, complete the calculation at line 48 of Form AB428.

For more information about minimum tax, see the General Income Tax and Benefit Guide.

Line 50 – 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 eligible to claim a provincial foreign tax credit.

To claim this credit, complete Form T2036, Provincial or Territorial Foreign Tax Credit.

Enter, on line 50 of Form AB428, the amount from line 5 of Form T2036.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach your Form T2036.

Lines 52 to 56 – Alberta political contribution tax credit

You can claim this credit if you contributed to:

  • a registered Alberta political party, a registered candidate, or a registered constituency association in an election held under the Election Act for this province; or
  • a registered Alberta political party that has nominated a candidate or a registered candidate in an election held under the Senatorial Selection Act for this province.

Only claim contributions you made during 2015.

You have to claim this credit on your return or within 90 days after the date of the notice of assessment or notice of reassessment for the tax year.

How to claim – Official receipt called Annual Contribution

Enter your contributions on line 52 of Form AB428 and calculate the amount to enter on line 53 as follows:

  • For contributions of more than $2,300, enter $1,000 on line 53 of Form AB428.
  • For contributions of less than $2,300, complete the calculation for line 53 on the Provincial Worksheet.
How to claim – Official receipt called Senatorial Selection Campaign Contribution

Enter your contributions on line 54 of Form AB428 and calculate the amount to enter on line 55 as follows:

  • For contributions of more than $2,300, enter $1,000 on line 55 of Form AB428.
  • For contributions of less than $2,300, complete the calculation for line 55 on the Provincial Worksheet.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, for each contribution, attach the official receipt signed by an official of the registered party, the registered constituency association, or the registered candidate.

Alberta stock savings plan tax credit

If you had any unused stock savings plan tax credit amount to be applied in 2015, attach a completed Form T89, Alberta Stock Savings Plan Tax Credit.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach your Form T89.

For more information

If you have questions about Alberta tax and credits, visit the CRA website or call 1-800-959-8281.

To get forms, go to Forms and publications.

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