Table of Contents

• FormAB428, Alberta Tax and Credits
• Alberta non-refundable tax credits
• Alberta stock savings plan tax credit

The information in this book will help you complete Form AB428, Alberta Tax and Credits.

The terms spouse and common-law partner are defined on page 12 of the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2001, the date you left Canada if you emigrated in 2001, or the date of death for a person who died in 2001.

Tax tip
A growing number of Alberta tax measures are distinct from corresponding federal measures. However, many rules relating to calculating Alberta tax are still based on the federal Income Tax Act. As a result, you may find it easier to calculate your federal tax first. Your total taxes payable will be the same, no matter which tax you calculate first.

FormAB428, Alberta Tax and Credits

Complete Form AB428 if you were a resident of Alberta at the end of the year.

If you had income from a business with a permanent establishment outside Alberta, complete Form T2203, Provincial and Territorial Taxes for 2001 - Multiple Jurisdictions, before you complete Form AB428.

You also have to complete Form AB428 if you were a non-resident of Canada in 2001 and you earned income from employment in Alberta, or received income from a business with a permanent establishment only in Alberta.

If you have to pay minimum tax as calculated on Form T691, Alternative Minimum Tax, complete Form T1219, Provincial Alternative Minimum Tax, to determine your Alberta minimum tax. You can find information about minimum tax on page 30 in the General Income Tax and Benefit Guide.

Line 4 - Alberta tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the provincial tax that applies to this income. Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. You can find additional information on tax on split income on page 14 in the General Income Tax and Benefit Guide.

Alberta non-refundable tax credits

Alberta now has its own non-refundable tax credits. These credits reduce the amount of provincial tax you owe; however, if the total of these credits is more than the amount of provincial tax you owe, you will not get a refund for the difference.

The eligibility criteria and rules for claiming the Alberta non-refundable tax credits are the same as for the federal non-refundable tax credits. However, the value and calculation of some Alberta non-refundable tax credits are different from the corresponding federal credits.

In calculating many of the provincial non-refundable tax credits, you will need to use the new Provincial Worksheet included in this book.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 306, 315 and 316 of your federal Schedule 1, you are required to perform the same pro-ration on the corresponding provincial amounts at lines 5804 to 5820, 5840 and 5844.

Line 5804 - Basic personal amount

Claim the basic personal amount of $12,900.

Line 5808 - Age amount

You can claim this amount if you met the rules for claiming it on line 301 of your federal Schedule 1. Enter on line 5808 the same amount that you entered on line 301.

Line 5812 - Spouse or common-law partner amount

You can claim this amount if you met the rules for claiming it on line 303 of federal Schedule 1 and your spouse or common-law partner's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $12,900.

Complete the calculation to determine your claim and enter the result on line 5812.

Note
Enter your marital status and the information about your spouse or common-law partner (including his or her net income, even if it is zero) in the Identification area on page 1 of your return.

Line 5816 - Amount for an eligible dependant

You can claim this amount if you met the rules for claiming it on line 305 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $12,900.

Complete the calculation to determine your claim and enter the result on line 5816.

If you have not already completed the federal Schedule 5, complete and attach it to your return.

Line 5820 - Amount for infirm dependants age 18 or older

You can claim this amount if you met the rules for claiming it on line 306 of federal Schedule 1.

Complete the chart for line 5820 on the Provincial Worksheet in this book to calculate your claim.

Line 5824 - Canada Pension Plan or Quebec Pension Plan contributions through employment

Enter on this line the amount you claimed on line 308 on federal Schedule 1.

Line 5828 - Canada Pension Plan or Quebec Pension Plan contributions on self-employment and other earnings

Enter on this line the amount you claimed on line 310 on federal Schedule 1.

Line 5832 - Employment Insurance premiums

Enter on this line the amount you claimed on line 312 on federal Schedule 1.

Line 5836 - Pension income amount

You can claim this amount if you met the rules for claiming it on line 314 of federal Schedule 1. Enter on line 5836 the same amount that you entered on line 314.

Line 5840 - Caregiver amount

You can claim this amount if you met the rules for claiming it on line 315 of federal Schedule 1.

Complete the chart for line 5840 on the Provincial Worksheet in this book to calculate your claim.

Line 5844 - Disability amount

You can claim this amount if you met the rules for claiming it on line 316 of federal Schedule 1.

• If you were 18 or over at the end of the year, enter $6,000 on line 5844.
• If you were under 18 at the end of the year, complete the chart for line 5844 on the Provincial Worksheet in this book to calculate your claim.

Line 5848 - Disability amount transferred from a dependant (other than your spouse or common-law partner)

You can claim this amount if you met the rules for claiming it on line 318 of federal Schedule 1.

Complete the chart for line 5848 on the Provincial Worksheet in this book to calculate your claim.

Line 5852 - Interest paid on your student loans

Enter on this line the amount you claimed on line 319 of federal Schedule 1.

Line 5856 - Tuition and education amounts

The tuition and education amounts that you claimed, on line 323 of your federal Schedule 1, may be different than the provincial amounts you calculate.

Complete Part 1 of Schedule AB(S11), Provincial Tuition and Education Amounts, to calculate your claim.

Receipts - If you are filing a paper return, attach the completed Schedule AB(S11), but not your receipts or other forms. Keep them in case we ask to see them. If you are filing electronically, keep all your documents.

Transferring and carrying forward amounts

You may not need all of your 2001 tuition and education amounts to reduce your provincial income tax to zero. In this case, you may transfer all or part of the unused portion to one person, either your spouse or common-law partner (who would claim it on line 5864), or your parent or grandparent, or your spouse or common-law partner's parent or grandparent (who would claim it on line 5860).

You can only transfer an amount to your parent or grandparent, or your spouse or common-law partner's parent or grandparent if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.

Complete Part 2 of Schedule AB(S11) to calculate the provincial amount available to transfer, as well as the back of Form T2202, Education Amount Certificate, or T2202A, Tuition and Education Amounts Certificate, to designate who can claim it and the amount the person can claim. This amount may be different from the amount claimed federally by that same person.

You can carry forward and claim in a future year the part of your tuition and education amounts you do not need to use (and do not transfer) for the year. Complete Part 3 of Schedule AB(S11) to calculate the amount you can carry forward.

Line 5860 - Tuition and education amounts transferred from a child

You can claim this amount if you met the rules for claiming it on line 324 of federal Schedule 1.

Enter, on line 5860, the total of all provincial amounts transferred to you that each student designated on the back of his or her Form T2202 or T2202A and on line 20 of his or her Schedule AB(S11). The student may choose to transfer an amount that is less than the provincial amount allowable calculated in Part 2 of his or her Schedule AB(S11).

Note
The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year, but only those from 2001.

See other rules for line 324 in the General Income Tax and Benefit Guide that may apply if the student has a spouse or a common-law partner.

Receipts - If you are filing a paper return, do not include the student's Schedule AB(S11), forms, or official tuition fees receipts, but keep them in case we ask to see them. If you are filing electronically keep all of your documents.

Line 5864 - Amounts transferred from your spouse or common-law partner

You can claim these amounts if you met the rules for claiming them on line 326 of federal Schedule 1. To calculate your claim, complete Schedule AB(S2), Provincial Amounts Transferred From Your Spouse or Common-law Partner.

Receipts - Do not include any receipts or forms [other than your own Schedule AB(S2)] for your spouse or common-law partner, but keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Line 5868 - Medical expenses

The allowable medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2001, and have not been claimed in 2000.

Line 5872 - Medical expenses adjustment

If you claimed, on line 5868, medical expenses for a dependant, other than your spouse or common-law partner, whose net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is more than $12,900, complete the calculation for line 5872 on the Provincial Worksheet in this book to determine your adjustment.

Tax Tip
Provincially, the medical expenses adjustment that you calculate will be less than the amount you calculated federally. If this is the case, and the adjustment you calculate is less than the medical expenses for that dependant, it will be to your benefit to include these expenses at line 5868.

Line 5896 - Donations and gifts

To calculate your claim for line 5896, enter the amounts from lines 345 and 347 of federal Schedule 9 and multiply them by the rates on lines 30 and 31 of Form AB428.

Lines 42 to 43 - Alberta political contribution tax credit

You can deduct part of the contributions you made in 2001 to registered Alberta political parties or constituency associations, or to registered candidates in an election held under the Election Act or the Senatorial Selection Act.

How to claim

Enter your total contributions on line 42 of Form AB428 and determine the amount to enter on line 43 as follows:

• For contributions of less than $1,725, complete the chart for line 43 on the back of Form AB428.
• For contributions of more than $1,725, enter $750 on line 43 of Form AB428.

Receipts - Attach to your paper return official receipts signed by an official of the political party or by the candidate. If you are filing electronically, keep your receipts in case we ask to see them.

Line 45 - Royalty tax rebate

If, in 2001, you paid royalties or similar payments to the federal or provincial government for production from a Canadian resource property, you may qualify for the Alberta royalty tax rebate.

Attach a completed Form T79, Alberta Royalty Tax Rebate (Individuals), to your paper return.

Alberta stock savings plan tax credit

If you had any unused stock savings plan tax credit to be applied in 2001, attach a completed Form T89, Alberta Stock Savings Plan Tax Credit, to your paper return. If you are filing electronically keep it in case we ask to see it.