6 Benefits only accessible with the Disability Tax Credit
Many Canadians with disabilities don’t claim the Disability Tax Credit (DTC) and are actually missing out on numerous additional Disability Tax Credit benefits! The DTC is also known as a gateway credit because once approved for the DTC, you’re also entitled to much more.
1 – Medical expenses
You can generally claim medical equipment on your income taxes with only a prescription, but you need to apply for the Disability Tax Credit if you want to claim additional medical expenses like:
- Attendant care expenses for yourself or a dependant
- Some cosmetic surgeries
- Certain dietary products for people with celiac disease
2 – Child Disability Benefit
Families with kids under 18 year old are eligible to receive the Canada Child Benefit (CCB) – a tax-free monthly payment, calculated based on family income.
To find out how much CCB your family may be entitled to, check out this calculator.
If a child has a disability, their parent or supporting family members may apply for the Disability Tax Credit and receive a supplement to the CCB, called the Child Disability Benefit (CDB). CDB can be credited retroactively, meaning if you haven’t been receiving it before, you can ask for it all way up to 10 years prior!
While the Child Disability Benefit is worth about $2,700 a year, some provinces also provide additional amounts.
3 – Registered Disability Savings Plan
With the Registered Disability Savings Plan, Canadians living with disabilities can save money, tax-free, until funds are withdrawn. You can take advantage of the Canadian Disability Savings Grant, in which the federal government contributes up to $3 for every dollar you put away (up to $90,000).
The Government of Canada will also pay a Canada Disability Savings Bond of up to $1000 per year (up to $20,000) directly into your RDSP if you belong to a low-income household.
4 – Home Buyer’s amount
Only first-time home buyers can claim this amount – worth $5000 – for the purchase of their first home. However, those who are approved the Disability Tax Credit, or who are eligible to claim the Disability Tax Credit, can claim this amount for a home they bought for accessibility reasons.
To claim the home buyer’s amount, the person with a disability must occupy the home or intend to occupy the home as a principal residence within a year of it being acquired.
5 – Working Income Tax Benefit (WITB) disability supplement
This refundable tax credit is meant as relief for eligible low-income individuals and their families who are already working and to encourage others to obtain employment.
You must meet minimum eligibility requirements to claim the WITB:
- Must be at least 19 years old by the end of the year; or if under 19, must have a dependent such as a child or a spouse
- Must not have been a full-time students during at least 13 weeks of the year
- Must not have been in prison for 90 days or more
- Are a Canadian resident for income tax purposes throughout the year
If you are approved the Disability Tax Credit, you may receive a disability supplement if your working income is over $1150.
6 – Home Accessibility Tax Credit (HATC)
If you make renovations in your home to make it more accessible for your disability, you can claim the Home Accessibility Tax Credit – worth 15% of up to $10,000 of eligible home renovation expenses.
Expenses eligible for the Home Accessibility Tax Credit must be for work performed or goods paid for – so remember to keep those receipts!
Examples of expenses eligible for the HATC include costs related to wheelchair ramps, walk-in bathtubs or wheelchair elevators.
To claim the benefits on this list, you’ll first need to apply for the Disability Tax Credit.