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Disabled and Able to Work – Claim the Disability Tax Credit

October 01, 2013
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It should be no surprise that people with disabilities are able to earn incomes. Despite significant restrictions, many people uphold full-time jobs. To encourage this, Canada offers financial support to workers who struggle with severe and prolonged disabilities.

Disabled-and-Able-to-Work

Shockingly enough, recent reports state less than five percent of Canadians who are of working-age take part in government disability support program. Still, the Disability Tax Credit is most valuable to people with disabilities who keep up with full-time jobs (if able). This is different than other countries where financial support is available only to people who cannot draw any income.

Disability does not imply inability; it only states that a person has mental or physical challenges that need to be attended to as he or her sees necessary. People with disabilities are active members of society and should not live in poverty or bear the burden of affording astronomical medical expenses. For these reasons, Canada Revenue Agency offers the Disability Tax Credit.

People with Disabilities Should Not Live in Poverty

Increases in medical expenses and the costs of living are impacting people with disabilities in dramatic ways. It seems near impossible to afford medications, therapies, medical services, and more. Under these circumstances, individuals are often faced with significant financial problems. Some governments try to assist disability communities through charitable programs. Unfortunately, benefits like these expire if an individual becomes well enough to work again. Canada offers a tax break and retroactive payments that allow a disabled person to work and receive benefits.

The Disability Tax Credit Offsets Medical Expenses

The Disability Tax Credit offers annual savings and substantial refunds (up to $40,000!). Even though people with disabilities are able to work, living with a disability may compromise how much he or she is able to earn. If this person earns a low or average income, he or she may still be at a disadvantage when trying to afford medical expenses. The Disability Tax Credit provides annual returns on taxable income that can alleviate this burden.

Is the Disability Tax Credit of Value to those who cannot Work?

Even though the Disability Tax Credit is most valuable to an individual who earns a taxable income, it can be transferred to a supporting person if the beneficiary is not able to work. If a family member or caregiver pays for basic necessities, he or she may be able to claim the disability amount on his or her tax forms.

Many people with disabilities are able to secure worthwhile employment. In these situations, the Disability Tax Credit increases in value. However, a person is not out of luck if he or she cannot work. The tax credit is transferable.

Considering the large amount of benefits available, qualifying for the Disability Tax Credit is a complex and drawn out process. People with disabilities are wise to have professional consultants help them understand the tax credit and navigate the application process.

Benefit Specialists are able to assist a person living with a disability file a successful T2201 form, whether or not the individual earns an income. The National Benefit Authority is the most trusted name in disability support. Free consultations are available to those who call 1888-389-0080. Also contact the agency by filling out this online form: http://www.thenba.ca/free-consultation.html.

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