Alberta to receive max tax benefit in April, check full news

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Key Takeaway Box

Alberta residents can expect to receive more tax benefits in April 2024, thanks to some changes in the provincial and federal tax system.
The Alberta child and family benefit, the Canada Dental Benefit, the first-time home buyers’ tax credit, and the home accessibility tax credit are some of the benefits that are increasing or newly introduced for the 2023 tax year.
To qualify for these benefits, Alberta residents need to file their 2023 income tax and benefit returns by April 30, 2024, or May 1, 2024, if the date falls on a weekend.
The climate action incentive payment will also be automatically issued to eligible Albertans four times a year, starting from April 14, 2024.

Introduction

Hey, Hustlers! Are you ready for some good news? If you live in Alberta, you might be eligible for some extra cash in your pocket next month. That’s because Alberta is set to receive the maximum tax benefits in April 2024, thanks to some updates and changes in the provincial and federal tax system. In this article, we’ll tell you what these benefits are, how much you can get, and how to apply for them. Let’s get started!

Alberta child and family benefit

The Alberta child and family benefit 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 and is paid separately from the Canada Child Benefit. The annual amount is split into four payments and is based on your family net income and the number of children you have.

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Number of children	Base component	Working component	Total
1	$1,330	$681	$2,011
2	$1,995	$1,022	$3,017
3	$2,660	$1,363	$4,023
4 or more	$3,325	$1,704	$5,029

^{The table shows the maximum amounts you can receive for the 2023 tax year}

To qualify for this benefit, you need to file your 2023 income tax and benefit return by April 30, 2024, or May 1, 2024, if the date falls on a weekend. You also need to meet the residency and citizenship requirements and register your child for the Canada child benefit. The Canada Revenue Agency (CRA) will use the information from your return to determine if you are entitled to receive this benefit. For more information, call 1-800-959-2809 or visit Alberta child and family benefit.

Canada Dental Tax Benefit

The Canada Dental Benefit is a new benefit that provides financial support for parents and guardians of children under 12 years old who receive dental care in Canada and do not have access to private dental insurance. The benefit covers up to $1,000 per child per year for basic dental services such as exams, cleanings, fillings, and extractions. The benefit is paid as a reimbursement after you submit a claim with the receipts of the dental expenses. To be eligible for this benefit, you need to meet the following criteria:

You have a child under 12 years old who received dental care in Canada in 2023 or 2024.
Your family’s net income is less than $90,000 per year.
You do not have access to private dental insurance for your child.

To apply for this benefit, you need to fill out and submit the Canada Dental Benefit Application Form along with the receipts of the dental expenses. You can submit your claim online, by mail, or by fax. You need to submit your claim within 12 months of the date of the dental service. The CRA will process your claim and issue the payment within eight weeks. For more information, visit Canada Dental Benefit.

First-time home buyers’ tax credit

The first-time home buyers’ tax credit is a non-refundable tax credit that helps eligible individuals who buy a qualifying home for the first time. The credit reduces the amount of federal income tax you owe, or increases your refund, by up to $750. For the 2023 tax year, the amount used to calculate the credit has increased to $10,000 for a qualifying home purchased after December 31, 2021. A qualifying home is one that meets the following conditions:

It is located in Canada and registered in your name or your spouse’s or common-law partner’s name.
You or your spouse or common-law partner intend to occupy it as your principal place of residence within one year of purchase.
You or your spouse or common-law partner have not owned and lived in another home in the year of purchase or in any of the four preceding years.

To claim this credit, you need to enter the amount of $10,000 on line 31270 of your 2023 income tax and benefit return. You also need to complete and attach Schedule 1 to your return. For more information, visit [First-time home buyers’ tax credit].

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Home accessibility tax credit

The home accessibility tax credit is a non-refundable tax credit that helps seniors and persons with disabilities who make their homes more accessible, safe, and functional. The credit reduces the amount of federal income tax you owe, or increases your refund, by 15% of the eligible expenses you incur for qualifying renovations or alterations. For 2023 and later tax years, the annual expense limit of the credit has increased to $20,000 per qualifying individual. A qualifying individual is one who meets the following criteria:

You are 65 years of age or older at the end of the year, or you are eligible for the disability tax credit at any time in the year.
You own or rent a home in Canada that is your principal place of residence, or you share the ownership or tenancy of a home with one or more of your relatives who are qualifying individuals.

A qualifying renovation or alteration is one that meets the following conditions:

It allows the qualifying individual to gain access to, or to be more mobile or functional within, the home, or reduces the risk of harm to the qualifying individual within the home or from entering the home.
It is of an enduring nature and is integral to the home.
It is not normally expected to be undertaken by individuals who are not seniors or persons with disabilities.

Some examples of qualifying renovations or alterations are:

Installing wheelchair ramps, handrails, or grab bars.
Widening doorways or hallways.
Lowering kitchen or bathroom cabinets or counters.
Installing walk-in bathtubs or showers.
Replacing doorknobs or faucets with lever handles.

To claim this credit, you need to enter the amount of your eligible expenses on line 31285 of your 2023 income tax and benefit return. You also need to keep the receipts and invoices of the expenses in case the CRA asks for them. For more information, visit [Home accessibility tax credit].

Climate action incentive payment

The climate action incentive payment (CAIP) is a payment that helps offset the cost of the federal carbon pollution pricing system. The payment is based on the province or territory where you live and the size of your family. The payment is automatically issued to eligible individuals who file their income tax and benefit returns. For 2023 and later tax years, the payment will be issued four times a year, in April, July, October, and January.

Family size	Annual amount	Quarterly amount
Single adult or first adult in a couple	$339	$84.75
Second adult in a couple or first child of a single parent	$170	$42.50
Each child under 18 (starting with the second child for single parents)	$85	$21.25
Single parent with one child	$424	$106

^{The Table shows the payment amounts for Alberta residents for the 2023 tax year}

To qualify for this payment, you need to be a resident of Alberta and be 18 years of age or older, or have a spouse or common-law partner, or be a parent who lives with your child. You also need to file your 2023 income tax and benefit return by April 30, 2024, or May 1, 2024, if the date falls on a weekend. The CRA will use the information from your return to determine if you are eligible for this payment and how much you will receive. For more information, visit [Climate action incentive payment].

Conclusion

As you can see, Alberta residents can benefit from a number of tax benefits in April 2024, thanks to some changes in the provincial and federal tax system. These benefits can help you save money, improve your quality of life, and protect the environment. To make sure you don’t miss out on these benefits, file your 2023 income tax and benefit return on time and accurately. If you need any help with your taxes, you can always contact HustleHub, your trusted partner for all your financial needs. We hope you enjoyed this article and found it useful. Stay tuned for more tips and tricks from HustleHub!

Source: (1) Alberta tax information for 2023 – Personal income tax. https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/alberta/5009-pc.html. (2) What’s new and what to remember when filing your taxes in Alberta this …. https://www.canada.ca/en/revenue-agency/news/2023/02/whats-new-and-what-to-remember-when-filing-your-taxes-in-alberta-this-year.html. (3) Understanding the Alberta Tax System: A Complete Guide. https://www.personalfinancefreedom.com/understanding-the-alberta-tax-system-a-complete-guide/. (4) Alberta Information Guide – Canada.ca. https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/archived-general-income-tax-benefit-package-2022/alberta/5009-pc/information-residents-alberta.html.