Alberta Tax and Credits 2016, part 1

by in Tax Advice Information and Updates
Alberta Tax and Credits 2016, part 1
Tax rates for Alberta for the tax year 2016 are as follows:

-      10% on the first $125,000 of taxable income, +

-      12% on the portion of taxable income more than $125,000 but not more than $150,000, +

-      13% on the portion of taxable income more than $150,000 but not more than $200,000, +

-      14% on the portion of taxable income more than $200,000 but not more than $300,000, +

-      15% of taxable income over $300,000.

Alberta offers credits which further reduce your amount of provincial tax payable. Here are some of them:

-      Alberta additional tax for minimum tax purposes:  If you have to pay federal minimum tax as calculated on Form 691, Alternative Minimum Tax, you will also have to determine your Alberta additional tax for minimum tax purposes.

-      Adoption expenses: You can claim up to $12,619 of eligible adoption expenses for each child. Note that residents of Alberta are eligible for this amount.

-      Age amount:  You can claim this amount if you were 65 years of age or older on December 31, 2016, and your net income is less than $72,549.

-      Allowable amount of medical expenses for other dependents: You can also claim medical expenses for other dependents.  The total expenses for each dependent have to be more than either 3% of that dependent’s net income or $2,384, whichever is less.

-      Caregiver amount:  You can claim this amount if the rules are met for claiming the amount on federal Schedule 1 and your dependent’s net income is less than $27,662.

-      Amount for infirm dependents age 18 or older:  You can claim this amount if the rules are met for claiming the amount on your federal Schedule 1 and your dependent’s net income is less than $17,736.

We’ll look at more tax credits on our next blog! Remember, if you have any questions on what provincial tax credits apply to you, please do not hesitate to contact KD!

Source:  www.cra.gc.ca
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