Disability Tax Credit

The ‘Ins’ and ‘Outs’ of the Disability Tax Credit

This article will provide you with the nitty-gritty on what the Disability Tax Credit is all about so that you know everything about this important benefit.

 

If you suffer from a disability, you may have heard of the term ‘Disability Tax Credit’. Initially, you may have asked yourself who is eligible for this benefit. You may have then learned that the answer to this question will vary on a case to case basis. So now the question you must be itching to ask is whether you are eligible to take advantage of this valuable disability benefit.

Let’s start with the basic definition. As per Canada Revenue Agency, 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 and find yourself in a position where you are unable to avail 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. Sound’s good, doesn’t it?

This then leaves us with just one more question; do you think you are part of the eligible list or not? The answer to this question is far from straightforward. CRA has guidelines but in reality you will not know for certain that you qualify until CRA issues a determination on your unique case. Broadly speaking you would need to meet three conditions. You must have a severe impairment in physical or/and 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 and finally, a qualified practitioner needs to certify that your impairment is severe and prolonged by completing the Disability Tax Credit Certificate. Once completed, the Disability Tax Credit should highlight and detail the effects of the impairment on your basic activities of daily living.

Now you might be thinking that preparing such a detailed application may be too cumbersome a task for you. After all filing all that paperwork must require a meticulously prepared application. Yes it will, but fret not because the NBA is here to guide you through everything. We at the National Benefit Authority promise to make your life a whole lot easier. Founded with the simple aim of ensuring that people with disabilities receive the benefits they deserve, the NBA will do all the hard work for you. We are the largest firm of its kind in Canada. No other company has processed more Disability Tax Credit applications than the National Benefit Authority. Call or contact us today to start the process that can grant you up to $40,000.