What is the Disability Tax Credit?
When a person with a disability first hears about the Disability Tax Credit (DTC), a flood of queries usually follows. From how to apply for Disability Tax Credit, to Disability Tax Credit eligibility, and even Disability Tax Credit amounts, these factors vary on a case-to-case basis.
So who qualifies for these disability benefits?
First, let’s take care of the basics: what is the Disability Tax Credit? Per the Canada Revenue Agency (CRA), the Disability Tax Credit is defined as a non-refundable tax credit that is used to reduce income tax for those individuals who may be eligible.
If you are eligible for the Disability Tax Credit, but find yourself in a position where you are unable to recover all or part of this credit (because of the lack of taxable income), the Disability Tax Credit can be transferred to your spouse, common-law partner, or any other supporting person.
Disability Tax Credit Eligibility
That leaves the key question: what are the Disability Tax Credit eligibility guidelines?
As we alluded to earlier, the answer isn’t straightforward. While the CRA does set rules and stipulations, the truth is a person won’t know if they’ve qualified until the CRA processes the unique application.
In the broadest terms of Disability Tax Credit eligibility, three conditions typically must be met, which are as follows:
- You must have a severe impairment in physical and/or mental functions.
- This impairment must be prolonged such that it has been persistent or will remain persistent for a continuous period of at least one year.
- A qualified practitioner needs to certify that your impairment is severe and prolonged by completing the Disability Tax Credit Certificate.
Filling out the T2201 form and accompanying paperwork for the DTC application can be a meticulous, time-consuming process. More so, the necessary detail and diligence adds to the complexity, as an incorrect application can lead to a rejected submission.
The NBA specializes in all areas of the DTC and Canadian Disability Tax Credit benefits. We’ve filed thousands of Disability Tax Credit applications for Canadians successfully – we know the process and required details like the back of our hand, as our testimonials show.
We’ve processed more Disability Tax Credit applications than anyone else in the country, recovering upwards of $50,000 per claim for our Canadian clients.
If you think you may qualify for the DTC, fill out our Free Disability Tax Credit Consultation form to see if you are eligible to receive up to $50,000 from the CRA for your disability.
For any other queries about Disability Tax Credit eligibility, visit our FAQ, or call us today at 1-888-389-0080.