Did you know you can use your child’s benefits towards a preschool/kindergarten education? In today’s economy one of the biggest challenges is to pay for your child’s education. Many parents want to start their child on a path of learning during the formative years or what we call the preschool years! The Alberta government has recently increased their child benefit program to aid families in child care costs. These benefits can be used towards a preschool/kindergarten program to create a strong foundation for your child’s education. Below is an outline to help parents understand the federal and NEW Alberta child benefits.
At the federal level, parents may be eligible to receive the Canada Child Benefit (CCB) tax-free monthly payment. Parents will need to file their income tax even if there is no income in order to receive the CCB. Eligibility is based on family income.
There are two types of provincial benefits that are available to families; The Alberta Family Employment Tax Credit (AFETC) and the Alberta Child Benefit (ACB), both are non-taxable benefits.
The AFETC helps low to middle income working families to continue to provide for their children and is an incentive for parents to continue working. You must meet the criteria and are automatically considered for this benefit if you have applied for the federal Canada Child Benefit (CCB).
The eligibility criteria are as follows:
- 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
- be a resident of Alberta for at least one month prior to receiving the credit
- have filed a tax return
You may be eligible for the ACB if your family income is less than $41,220 which has been raised from $36,778.
The following table has been taken from http://www.alberta.ca/alberta-family-employment-tax-credit.aspx and shows the maximum benefits that can be received for both the AFETC and ACB:
|
Number of children |
AFETC (max.) |
ACB (max.) |
Total benefits (max.) |
|---|---|---|---|
|
1 child |
$763 |
$1,100 |
$1,863 |
|
2 children |
$1,457 |
$1,650 |
$3,107 |
|
3 children |
$1,873 |
$2,200 |
$4,073 |
|
4 or more children |
$2,012 |
$2,750 |
$4,762 |
Canada Revenue Agency (CRA) has made this easy for you to see how much child and family benefits you qualify for. This calculator can be found at: http://www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html.
On top of all the above benefits, parents can claim child care costs as a deduction from income on line 214 of your personal tax return. This reduces your income and can save you taxes with a basic annual limit of $8000.
The government has made a conscious effort to help make education affordable for lower to middle income families. We encourage all parents to utilize these wonderful benefits.
For more information, please visit the Canada Revenue Agency: http://www.cra-arc.gc.ca/benefits/
