Alberta Family Employment Tax Credit (AFETC)

What’s in this article?

 

What is this?

The Alberta Family Employment Tax Credit is a non-taxable credit paid to low to middle-class income-earning families that have children under 18 years of age. There is no need to apply for this credit; if you are eligible, it will be automatically paid to you.

Note: The Alberta Family Employment Tax Credit is fully funded by the province of Alberta. If you are eligible to receive this tax credit, payments will be made to you twice a year in July and January. This is separate from the Canada Child Tax Benefit (CCTB).

 

Am I eligible?

This tax credit will be automatically paid to you if you meet all of the following eligibility criteria:

  • You are a resident of Alberta
  • You are in the low to middle income class of families
  • You have children under the age of 18

Alberta government says…..

This refundable tax credit is for Alberta families with children.  There is no need to apply for the AETC.  Eligibility is determined from information the federal government uses to calculate the Canada child tax benefit (CCTB), and from prior year's income tax returns filed by both spouses.  Payments are made in January and July.  As per the Alberta October 2015 budget, the Alberta Family Employment Tax Credit will be enhanced beginning in July 2016.  The rate at which benefits are phased in will increase from 8% to 11%, and the phase-out threshold will be increased from $36,778 to $41,250.  

Benefits under the AFETC are indexed annually for inflation.  The phase-in threshold of $2,760 is not indexed.  The new phase-out threshold of $41,250 will be indexed, beginning in July 2017.

 

Where can I learn more?