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How to Apply for the Disability Tax Credit

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To apply for the Disability Tax Credit in Canada, you must complete the Disability Tax Credit certificate (Form T2201).

This Disability Tax Credit certificate is completed by both the person with a prolonged mental or physical disability, as well as a qualified medical practitioner. If you have a sponsor who will claim the credit on your behalf, then they will also need to complete a section of Part A.

Canadians living with a disability, or caring for a child with a disability, have several options to apply for and claim their Canadian disability benefits:

Applying

  1. On your own:
    You can download and complete Form T2201 from the Canada Revenue Agency’s (CRA) website. Part A would be filled out by you, while Part B is reserved for your medical practitioner. After completion, you can mail your completed DTC application to one of the CRA’s tax centres. It can take up to 6-8 weeks to hear back for a decision.
  2. Work with a specialized DTC service provider:
    There are many companies nationwide like The National Benefit Authority that provides a ‘one-stop shop’ service. They will guide you through your application, work with your doctor, review your form for discrepancies, and submit your claim to the CRA on your behalf. If you are unfairly declined, the National Benefit Authority also appeals on your behalf.

Claiming

  1. On your own:
    Once you are approved, you can claim this credit on your tax returns moving forward. Make sure you check the box in Section 3 of the T2201 to allow the CRA to do tax adjustments for you. They will apply credits retroactively to your own refunds.
  2. Hire an Accountant or Bookkeeper:
    Depending on the tax experience of the person or firm you hire, they can help apply for credits retroactively. They can also claim this tax credit on your future tax refunds for as long as the CRA deems you eligible for the Disability Tax Credit.
  3. Work with a specialized DTC service provider:
    Companies like the National Benefit Authority can help you apply for and claim the Disability Tax Credit. The NBA’s specialty is in claiming the maximum Disability Tax Credits amount for you. We ensure that you get the most out of your refund, and work with you to find eligible sponsors to claim the credit if you do not have taxable income.

What’s the best way to claim the Disability Tax Credit?

Each method of applying for the Disability Tax Credit has its pros and cons. Let’s discuss so you can make the best decision for yourself or a loved one.

Applying and Claiming on Your Own

Pros:

  • Cost:
    Making a Disability Tax Credit claim on your own is the most economical – it’s free! Well, for the most part. You’ll need internet access, paper, pen, and access to a printer so you can download and complete Form T2201.

Cons:

  • Denied Claim:
    There’s a higher likelihood your Disability Tax Credit application may be rejected, as the smallest discrepancy can render an entire claim invalid – even if you fit all eligibility requirements.
  • Maximum Value:
    The average person does not know the Disability Tax Credit application process in its entirety, as the tax work can get difficult if you need to transfer your credit to a supporting family member. An experienced person has the knowledge to maximize your refund.

Hire an Accountant or Bookkeeper

Pros:

  • Simplicity:
    Your accountant or bookkeeper can help you apply your Disability Tax Credit on your future tax returns. If they are experienced, they can also help you apply credits retroactively and maximize your refund; some places will help you submit the T2201 form directly to the CRA.

Cons:

  • Price:
    Some places may charge you an upfront fee for the tax work.
  • Additional Costs:
    Your accountant or bookkeeper may charge an upfront fee to process the T2201 form and any related work required – whether your Disability Tax Credit claim is denied or not.
  • Appeals:
    Most places do not help appeal when your Disability Tax Credit is denied.
  • Approval knowledge:
    Your accountant can be very good at claiming your credits, but may have very little experience on eligibility requirements. They don’t usually work with your doctor on your behalf or continue fighting for your case to get you approved.

Work with a Specialized DTC Service Provider

Pros:

  • Best Chance for Approval:
    A service provider like The National Benefit Authority has dedicated Disability Tax Credit Specialists that fully understand the entire Disability Tax Credit application and claiming process. With years of experience, they follow a stringent process that has a higher proven success rate.
  • Efficiency:
    They’ve seen thousands of DTC applications and know how to best position you for an approved application, saving you time.
  • Stress-Free:
    They do follow-ups with the CRA and your doctor’s office on your behalf – plus they’re with you every step of the way until you get a decision from the CRA regarding your eligibility.
  • Reassessments:
    If you are unfairly denied, they can help you appeal the decision and continue fighting for your approval.
  • Get more Money:
    Sometimes you may qualify for more money than you realized! Experts in the Disability Tax Credit know how to effectively apply and claim the maximum amount of Disability Tax Credit credits you’re entitled to.
  • No upfront fees:
    These companies charge a contingency fee at the end of the process – only if they are successful in helping you claim your credits. There’s nothing to lose!

Cons:

Ready to get started on your Disability Tax Credit claim? Contact us now!

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