Together, the Alberta Family Employment Tax Credit (AFETC) and the Alberta Child Benefit (ACB) provide approximately $340 million in combined annual benefits to support 380,000 children in 199,000 families.
The AFETC helps low and middle-income working families provide for their children, and provides incentive for parents to continue working.
The AFETC was enhanced in July 2016, providing an additional $25 million in benefits to working Alberta families with children.
Improvements to the program include increasing:
- the rate at which benefits are phased in, from 8% to 11%
- the threshold at which benefits begin to be phased out from $36,778 to $41,250
This means that more families will receive benefits, and many families will receive a larger amount than they did before. In total, the AFETC provides $141 million in annual benefits to 290,000 children in 143,000 families across the province.
Families with income less than $41,220 per year may also be eligible for the Alberta Child Benefit (ACB).
Both the AFETC are non-taxable benefits.
You will automatically be considered for the AFETC if you have applied for the federal Canada Child Benefit and also meet the following eligibility criteria:
- be a parent of one or more children under the age of 18
- earn a family working income of more than $2,760
- earn a family net income of less than:
- $60,325 for families with 1 child
- $77,675 for families with 2 children
- $88,075 for families with 3 children
- $91,550 for families with 4 or more children
You must also:
- be a resident of Alberta for at least one month prior to receiving the credit
- have filed a tax return
Free tax clinics are available to prepare returns for eligible lower-income Albertans.
Working families receiving AISH, Income Support, and the child care subsidy are also eligible to receive the AFETC. The AFETC will not affect eligibility for these programs.
Family working income
Your family's working income is the combined earned income of you and your spouse (if you have one), including income from self-employment. It does not include income from sources such as alimony and child maintenance.
Family net income
Your family's net income (line 236 of your federal income tax) is your family's total income minus:
- your registered pension plan and RRSP contributions
- annual union dues
- child care expenses
- moving and other expenses
Payments will be mailed or direct deposited in 2 installments:
If you get less than $20 a year for the AFETC, you will receive only one payment for the full year.
The first payment under the enhanced program will be in July, 2016.
What you get
The amount your family receives depends on your annual family working and net income, and how many children you have under the age of 18.
The table below displays the maximum benefit amounts for both the AFETC and ACB
|Number of children||AFETC (max.)||ACB (max.)||Total benefits (max.)|
|4 or more children||$2,012||$2,750||$4,762|
Benefit amounts are phased in and out based on income level. For a working family with two children, the amount received from ACB and AFETC would look something like this:
Use the child and family benefits calculator to find out how much you may be entitled to. Please note, you will need your income tax return to enter specific amounts.
The semi-annual AFETC payment is made at the beginning of the 6-month period. If your family leaves Alberta during the 6-month period that you have already received payment, you will have to return the money you received for those months you were not living in the province.
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