The Alberta Family Employment Tax Credit (AFETC) is a cornerstone of financial support for lower and middle-income working families in Alberta.

Designed to help these families provide for their children, the AFETC is a refundable tax credit, meaning families can benefit from it even if they don’t owe any provincial income taxes.

The Purpose and Impact of AFETC

The AFETC aims to alleviate the financial burden on working families, ensuring they have additional resources to meet their children’s needs.

By offering this support, the program also incentivizes parents to remain in the workforce, contributing to Alberta’s economic stability.

Eligibility and Application Process

Who Qualifies for the AFETC?

Eligibility for the AFETC is determined by several criteria:

• Being a parent of one or more children under 18.
• Residency in Alberta for at least one month prior to receiving the credit.
• Having filed a tax return and receiving the Canada Child Benefit.

How to Apply

Families are automatically considered for the AFETC when they file their annual tax return and are recipients of the Canada Child Benefit.

There’s no need for a separate application, simplifying the process for eligible families.

Payment Details

Payments are made by the Canada Revenue Agency (CRA) on behalf of the province in two installments each year, in January and July.

The amount varies based on family income and the number of children, with a benefits calculator available to estimate potential entitlements.

Maintaining Eligibility

To continue receiving the AFETC, it’s crucial for families to file their federal and provincial taxes annually.

This ensures that eligibility is reassessed each year based on the most current financial information.

FAQs on the AFETC

Q: Can single parents qualify for the AFETC? A: Yes, single parents who meet the eligibility criteria can qualify for the AFETC.

Q: Does receiving the AFETC affect eligibility for other social programs? A: No, receiving the AFETC does not impact eligibility for other social programs such as AISH, Income Support, or the child care subsidy.

Q: What happens if my family’s income changes? A: Changes in family income may affect the amount of AFETC you’re eligible for. It’s important to accurately report income on your annual tax return to ensure correct assessment.

In Summary

• The AFETC supports lower and middle-income working families in Alberta.
• Eligibility is based on parental status, residency, and income criteria.
• Families are automatically considered for the AFETC when filing taxes.
• Payments are made twice a year by the CRA.

Sources and Further Reading

• Live Brooks Newell – Alberta Family Employment Tax Credit: For insights into how the AFETC supports lower- and middle-income working families in Alberta, visit Live Brooks Newell’s profile on the AFETC. This resource provides a summary of the program’s benefits and eligibility criteria, aimed at helping Alberta families understand the support available to them.