ARCHIVED - Alberta Information Guide

5009-PC(E)

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Table of contents

• New for Alberta for 2020
• Alberta benefits for individuals and families
  • Alberta child and family benefit
    • File your return
• Completing your Alberta form
  • Definitions
• Form AB428, Alberta Tax and Credits
  • When to complete Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions
  • Part A – Alberta tax on taxable income
    • Alberta tax rates for 2020
  • Part B – Alberta non-refundable tax credits
    • Newcomers to Canada and emigrants
    • Line 58120 – Spouse or common-law partner amount
    • Line 58160 – Amount for an eligible dependant
    • Line 58200 – Amount for infirm dependants age 18 or older 
    • Line 58330 – Adoption expenses
    • Line 58360 – Pension income amount
    • Line 58400 – Caregiver amount
    • Line 58440 – Disability amount for self
    • Line 58480 – Disability amount transferred from a dependant
    • Line 58560 – Your unused tuition and education amounts
    • Line 58689 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later
    • Line 58729 – Allowable amount of medical expenses for other dependants
  • Part C – Alberta tax
    • Line 50 – Alberta tax on split income
    • Line 57 – Alberta additional tax for minimum tax purposes
    • Line 59 – Provincial foreign tax credit
    • Line 62 – Alberta political contributions tax credit
    • Line 64 – Unused Alberta investor tax credit
    • Line 65 – Alberta stock savings plan tax credit

New for Alberta for 2020 

The Alberta investor tax credit has been eliminated but unused carry forward amounts can still be claimed.

The Alberta tuition and education tax credits have been discontinued. Students can continue to claim any unused amounts carried forward from previous years.

Alberta benefits for individuals and families 

Alberta child and family benefit

This credit is a non‑taxable amount paid to lower- and middle-income families with children under 18 years of age. This program is fully funded by the Province of Alberta. The annual amount is split into four payments and is paid separately from the Canada child benefit (CCB).

You do not need to apply for the Alberta child and family benefit. The Canada Revenue Agency (CRA) will use the information from your CCB application to determine if you are entitled to receive this 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 2020 Income Tax and Benefit Return(s) by April 30, 2021. The CRA will use the information from your return(s) to calculate the payments you are entitled to get from this program.

For more information about the Alberta child and family benefit, go to Province of Alberta or call 1-800-959-2809.

Completing your Alberta form

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

Definitions

Spouse refers to a person you are legally married to. 

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 following dates:

• December 31, 2020
• the date you left Canada if you emigrated in 2020
• the date of death for a person who died in 2020

Form AB428, Alberta Tax and Credits

Complete Form AB428 if one of the following applies:

• You were a resident of Alberta at the end of the year
• You were a non‑resident of Canada in 2020 and any of the following applies:
  • You earned income from employment in Alberta
  • You received income from a business with a permanent establishment only in Alberta

When to complete Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions

Complete Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, instead of Form AB428, if both of the following apply:

• You resided in Alberta on December 31, 2020 (or the date you left Canada if you emigrated in 2020)
• All or part of your 2020 business income (including income received as a retired, inactive, or limited partner) was earned and can be allocated to a permanent establishment outside Alberta

You also must complete Form T2203 if both of the following apply:

• You were a non-resident of Canada throughout 2020
• You were carrying on business in more than one province or territory in Canada or were receiving income from an office or employment that can reasonably be attributed to duties performed in more than one province or territory in Canada

Part A – Alberta tax on taxable income

Alberta tax rates for 2020

The following tax rates are used in the calculation of your Alberta tax on taxable income:

• 10% on the portion of your taxable income that is $131,220 or less, plus
• 12% on the portion of your taxable income that is more than $131,220 but not more than $157,464, plus
• 13% on the portion of your taxable income that is more than $157,464 but not more than $209,952, plus
• 14% on the portion of your taxable income that is more than $209,952 but not more than $314,928, plus
• 15% on the portion of your taxable income that is more than $314,928

Part B – Alberta non-refundable tax credits

The eligibility conditions and rules for claiming most Alberta non-refundable tax credits are the same as those for the federal non-refundable tax credits. However, the amount and calculation of most Alberta non-refundable tax credits are different from the corresponding federal credits.

Newcomers to Canada and emigrants

As a newcomer or an emigrant, you may be limited in the amount you can claim for certain provincial non-refundable tax credits.

If you reduced your claim for any of the following federal amounts, you also need to reduce your claim for the corresponding provincial amount in the same manner.

For examples on how to calculate these amounts, see Guide T4055, Newcomers to Canada.

Line 58120 – Spouse or common-law partner amount

You can claim this amount if the rules are met for claiming the amount on line 30300 of your return and your spouse’s or common-law partner’s net income from line 23600 of their return (or the amount that it would be if they filed a return) is less than $19,369.

Line 58160 – Amount for an eligible dependant

You can claim this amount if the rules are met for claiming the amount on line 30400 of your return and your dependant’s net income from line 23600 of their return (or the amount that it would be if they filed a return) is less than $19,369.

Line 58200 – Amount for infirm dependants age 18 or older

You can claim up to $11,212 for each of your (or your spouse’s or common-law partner’s) dependent children or grandchildren born in 2002 or earlier who has an impairment in physical or mental functions.

You can also claim this amount for more than one person if each one meets all of the following conditions:

• They are your (or your spouse’s or common-law partner’s) parent, grandparent, brother, sister, aunt, uncle, niece, or nephew
• They were 18 years of age or older
• They were dependent on you (or on you and others) because of an impairment in physical or mental functions
• They were a resident of Canada at any time in the year

You can claim this amount only if the dependant’s net income from line 23600 of their return (or the amount that it would be if they filed a return) is less than $18,619.

If you had to make support payments for a child, you cannot claim an amount on line 58200 for that child unless both of the following conditions apply:

• You were separated from your spouse or common-law partner for only part of 2020 because of a breakdown in your relationship
• You did not claim any support amounts paid to your spouse or common-law partner on line 22000 of your return

• line 58200 of your Form AB428
• line 22000 of your return

How to claim this amount

Complete the calculation for line 58200 using Worksheet AB428. If you are claiming this amount for more than one dependant, enter the total amount on line 58200 of your Form AB428.

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 58330 – Adoption expenses

You can claim this amount if the rules are met for claiming the amount on line 31300 of your return.

You can claim up to $13,247 of eligible expenses 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.

Line 58360 – Pension income amount

The amount you can claim on line 58360 is the amount on line 31400 of your return or $1,491, whichever is less.

Line 58400 – Caregiver amount

If, at any time in 2020, 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 $11,212 for each dependant.

Each dependant must be 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

Also, each dependant must meet all of the following conditions:

• They were 18 years of age or older when they lived with you
• Their net income in 2020 from line 23600 of their return (or the amount that it would be if they filed a return) was less than $29,038
• They were dependent upon you because of an impairment in physical or mental functions, or they were your (or your spouse’s or common-law partner’s) parent or grandparent born in 1955 or earlier

If you had to make support payments for a child, you cannot claim an amount on line 58400 for that child unless both of the following conditions apply:

• You were separated from your spouse or common-law partner for only part of 2020 because of a breakdown in your relationship
• You did not claim any support amounts paid to your spouse or common-law partner on line 22000 of your return

• line 58400 of your Form AB428
• line 22000 of your return 

How to claim this amount

Complete the calculation for line 58400 using Worksheet AB428. If you are claiming this amount for more than one dependant, enter the total amount on line 58400 of your Form AB428.

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 58440 – Disability amount for self

You can claim this amount if the rules are met for claiming the amount on line 31600 of your return.

If you were 18 years of age or older at the end of the year, enter $14,940 on line 58440 of your Form AB428.

If you were under 18 years of age at the end of the year, use Worksheet AB428 to calculate the amount to enter on line 58440.

Line 58480 – Disability amount transferred from a dependant

You can claim this amount if the rules are met for claiming the amount on line 31800 of your return.

Line 58560 – Your unused tuition and education amounts

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

Carrying forward amounts

Complete the “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 amounts that you are not claiming for the current year.

Supporting documents

If you are filing a paper return, attach your completed Schedule AB(S11). Keep your supporting documents in case you are asked to provide them later.

Line 58689 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later

The medical expenses you can claim on line 58689 are the same as those you can claim on line 33099 of your return. They also have to cover the same 12-month period ending in 2020 and must be expenses that were not claimed for 2019.

Line 58729 – Allowable amount of medical expenses for other dependants

You can claim medical expenses for other dependants in addition to the medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later on line 58689.

The medical expenses you can claim on line 58729 are the same as those you can claim on line 33199 of your return. They also have to cover the same 12-month period ending in 2020 and must be expenses that were not claimed for 2019.

Part C – Alberta tax

Line 50 – Alberta tax on split income

If you are reporting federal tax on split income on line 40424 of your return, complete Part 3 of Form T1206, Tax on Split Income, to calculate the Alberta tax to enter on line 42800 of your return.

Line 57 – 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 57 of your Form AB428 to determine your Alberta additional tax for minimum tax purposes.

Line 59 – 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.

How to claim this credit

Complete Form T2036, Provincial or Territorial Foreign Tax Credit.

Supporting documents

If you are filing a paper return, attach your Form T2036.

Line 62 – Alberta political contributions tax credit

You can claim this credit if, in 2020, you contributed to one of the following individuals or entities:

• a candidate under an election to the provincial legislature or a senatorial election
• an Alberta political party
• a leadership contestant
• a nomination contestant
• a constituency association

How to claim this credit

Enter your total political contributions made in 2020 on line 60030 of your Form AB428. Then calculate and enter your credit on line 62 as follows:

• For contributions of more than $2,300, enter $1,000 on line 62 of your Form AB428
• For contributions of $2,300 or less, complete the calculation for line 62 on Worksheet AB428

Supporting documents

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.

Line 64 – Unused Alberta investor tax credit

You can claim your unused Alberta investor tax credit amounts from investments made in 2019 or earlier in the following four tax years, up to a maximum of $60,000 per tax year.

How to claim this credit

Enter, on line 64 of your Form AB428, the amount of unused Alberta investor tax credit from your 2019 notice of assessment or reassessment you are claiming in 2020.

Line 65 – Alberta stock savings plan tax credit

If you had any unused stock savings plan tax credit amount to be applied in 2020, complete Form T89, Alberta Stock Savings Plan Tax Credit.

How to claim this credit

Enter, on line 65 of your Form AB428, the credit calculated on your Form T89. 

Supporting documents

If you are filing a paper return, attach your Form T89.