ARCHIVED - 5009-PC Information for Residents of Alberta

All the information you need to calculate your Alberta tax and credits is included on the following pages. You will find two copies of Form AB428, Alberta Tax and Credits, in this book. Complete Form AB428 and attach a copy to your return.

What's new for 2001?

The way you calculate your Alberta tax has changed. It is no longer a percentage of federal income tax. Alberta tax will now be calculated by applying a single tax rate of 10% to taxable income (line 260 of your return). Provincial non-refundable tax credits are then deducted from this amount.

The Alberta flat tax and selective tax reduction have been eliminated.

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

Alberta family employment tax credit

The Alberta family employment tax credit is a tax-free credit for families with working income that have children under age 18.

You may be entitled to receive whichever of the following three amounts is the least:

• $500 ($41.66 for each month) for each child under age 18;
• $1,000 ($83.33 for each month); or
• 8% of your family's working income that is more than $6,500.

The credit is reduced by 4% of the amount of family net income that is more than $25,000. Payments are made semi-annually, in January and July.

There is no need to apply separately to receive payments under this program. We will use the information from the Canada Child Tax Benefit (CCTB) application to determine your eligibility for the program.

You (and your spouse or common-law partner) should file your 2001 tax return(s) as soon as possible. The information you (and your spouse or common-law partner) give on your return(s) will determine how much you will get starting in July 2002.

This program is fully funded by the Province of Alberta. Payments are issued separately from the CCTB. For more information, call 1-800-959-2809.

If you have questions…

If you have questions about Alberta tax and credits, contact the Canada Customs and Revenue Agency (CCRA) at 1-800-959-8281.

The address of your tax services office and other telephone numbers are listed in the federal government section of your telephone book and on the CCRA's Web site at www.ccra.gc.ca/tso/ .