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Disability Tax Credit for Children Under 18

August 09, 2013
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Family caregivers know how taxing it can be to protect the health and well-being of children with disabilities. It costs money, time, and energy to manage a home where one child or more needs special attention. For this purpose, the Canada Revenue Agency disability tax credit is available for children under 18.

 Disability Tax Credit for Children Under 18

In some instances, it is referred to as the Child Disability Benefit (CDB) or the Canada Child Tax Benefit (CCTB). It is similar to the disability tax credit in the sense that it is “a tax-free benefit for families who care for a child under age 18 with a severe and prolonged impairment in mental or physical functions.”

This can also be seen as a caregiver tax credit for those who have children with disabilities. It is offered to the primary caregiver. To file for this disability tax credit, it is necessary to fill out the T2201 form.

What Is Unique About The Disability Tax Credit?

This credit can be claimed by primary caregivers or a person with disability to be used for anything. It is a tax break and, in some cases, a tax reimbursement. While the disability tax credit requires a medical evaluation, it is not granted based on diagnosis alone. The benefit is available to a person with severe and prolonged illness or handicap that interrupts his or her day to day life and costs significant amounts of money in life supporting therapies.

Should A Child Under 18 Apply For The Credit?

In most cases the answer is yes. If it is possible for this person to apply for the credit this is the best scenario. In some cases the individual will even receive retroactive payments. Applying for the CDB requires filing the T2201 form. This can be sent in at any time of year. If the claim is denied at first, there is a chance for it to be honored in the future.

Disability Tax Credit Disclaimer:

Like all things regarding taxes, the disability tax credit is about crunching numbers to optimize savings. Where disability is concerned, not all expenses and caregiver time can be claimed. There are regulations about claiming medical expenses and receiving the tax credit. Sometimes it is possible to do both. However, there are rules and stipulations involved that can confuse those who act as caregivers.

Good News about the Disability Tax Credit:

There are a number of options for caregivers. Continue to research how the Canada Revenue Agency disability tax credit works to supplement the incomes of people who give time and money to serving loved ones with disabilities. This website link has a full list of resources just for caregivers: http://www.servicecanada.gc.ca/eng/lifeevents/caregiver.shtml.

Every situation is different. All caregivers and individuals with disabilities are unique. Therefore, it is wise to seek professional advice when filing for the disability tax credit certificate.

The National Benefit Authority has helped people under these circumstances get money they are entitled to. The Canada Revenue Agency has money set aside for people with disabilities. This is invaluable to caregivers who pour time, energy, and resources into a loved one who has disability.

Contact the National Benefit Authority for a free consultation. Speak with benefit professionals who can assist with successfully filing the T2201 form. Make full use of the benefits offered to you and receive the care a caregiver deserves.

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