Newsrelease

June 6, 1997
Edmonton, Alberta

Alberta Family Employment Tax Credit

The Program

The Alberta Family Employment Tax Credit is part of the provincial government's reinvestment program, based on priorities identified through consultation with Albertans. It is designed to put money back into the pockets of the people who need it most, working families with children.

The program has two objectives:

• to support children in low and middle income families
• to provide an incentive for the parents of these children to work.

The Alberta Family Employment Tax Credit supports families both financially and through encouraging healthy values and stability. In its first year, it will provide a total of $35 million in tax credits to approximately 130,000 Alberta families.

Who Is Eligible?

People who meet all the following criteria qualify for the Alberta Family Employment Tax Credit.

• Resident of Alberta for at least one month.
• Parent of children under 18.
• A minimum of $6500 annual family working income.
• In 1997, a family net income of less than $37,500. In 1998, a family net income of less than $50,000.

How to Apply

Those people registered from within Alberta for the federal Child Tax Benefit prior to May 1997, do not need to apply for the Alberta Family Employment Tax Credit.

People who have a new child after the start of the program will be provided with forms to apply for the federal Child Tax Benefit by the hospital or doctor's office. This application will also cover the Alberta Family Employment Tax Credit. Eligibility will be automatically determined from the Child Tax Benefit application.

People who have moved to Alberta after the start of the program will be notified of their eligibility for the Alberta Family Employment Tax Credit once they have sent in their change of address notification to Revenue Canada.

Here's How The Tax Credit Works

• A family may receive up to $250 per child, with a maximum of $500 per family for the 1997 calendar year. Families will qualify for this credit if in 1996 their working income was at least $6500 and their net income was less than $37,500.
• For 1998, a family's benefit could increase to $500 per child, with a maximum of $1000 per family. To qualify, family net income for 1997 would have to be less than $50,000.
• A family's working income is the combined income of both spouses (if there are two), including income from self-employment. This is the same definition of income used to determine the working income supplement component of the federal Child Tax Benefit. It does not include income from sources such as alimony and child maintenance.
• A family's net income is the family's total income minus registered pension plan and RRSP contributions, annual union dues, child care expenses, moving and other expenses (as found on line 236 of the federal income tax form).
• The Alberta Family Employment Tax Credit starts out at eight cents on the dollar at the bottom end of the scale and is reduced by four cents on the dollar towards the upper end of the scale.
• Only one parent per family may receive the tax credit.

Payments

For 1997, the first year of the program, one payment in July will cover the entire year. In subsequent years, payments will be mailed in January and July. These will be advance payments -- the January payment will cover the first six months of the year, the July payment the second six months. If credits under the program amount to less than $20 a year, only one payment will be made for the full year.

If a family leaves Alberta during a six month period for which they have already received payment, they will have to return the money they received for those months they were not living in the province.

If a family currently uses the direct deposit service from Revenue Canada for their federal Child Tax Benefit, we will deposit your Alberta Family Employment Tax Credit into the same account. If a family receives their Child Tax Benefit by cheque, we will use the same process for the Alberta Family Employment Tax Credit.

Questions?

Revenue Canada has a toll free information line set up for families wanting further information about the Alberta Family Employment Tax Credit:
1-800-959-2809.

For more information, please contact:

Trish Filevich
Director of Communications
Alberta Treasury
(403) 427-5364
webmaster@treas.gov.ab.ca

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