Your Disability Tax Credit application was declined – What’s next?
You collect your mail and see a letter from the Canada Revenue Agency – at last, it’s been weeks and you’re eagerly waiting for the CRA’s response to your Disability Tax Credit application. Friends and family told you about this tax credit – if approved, you can potentially receive up to 10 years back in tax refunds. You knew you qualified because your doctor happily helped to fill out the forms for you.
Your excitement fades when you read the letter. You don’t qualify for the Disability Tax Credit after all. Disappointment washes over you and you’re thinking, “What next?”
Check your forms
If you or your doctor made copies of your Disability Tax Credit application, first check those over. See if you made any mistakes on your initial DTC (T2201) form. You’d be surprised how avoidable some of these mistakes can be! Find out where you could have gone wrong and avoid those mistakes when you reapply for the DTC.
Re-apply for the Disability Tax Credit
You can reapply for the DTC any time. The Canada Revenue Agency does not limit the number of Disability Tax Credit applications you make, but consider the CRA’s processing times and how it might impact your ability to maximize your potential refund. For instance, the DTC can be claimed retroactively up to 10 years – so, if it’s 2017 now, you have until December 31st 2017 to get approved for the DTC and claim it for the 2006 tax year. Come January 1, 2018, you cannot claim the DTC for 2006.
It’s certainly preferable that your doctor supports your DTC application, but consider that the Canada Revenue Agency is the sole authority who determines if you qualify for the Disability Tax Credit. You can opt to visit a different qualified medical professional or a specialist to assist with your application. There is no such thing as a medical diagnosis for “disability” – that’s why we are dedicated to educating Canadians and doctors about the Disability Tax Credit eligibility requirements.
Appeal the Disability Tax Credit decision
When someone has been declined the Disability Tax Credit multiple times, it can be disheartening and disappointing. Some may feel their disabilities and conditions are not as serious as they feel – and resign themselves to giving up on applying for the DTC.
Alternatively, you can appeal a Disability Tax Credit application decline. The Appeals process takes a notoriously long time as each application is unique to the individual applicant, so appealing an application involves its own separate process altogether.