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Tax Breaks for Canadians with Disabilities

September 23, 2014
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Canadian Currency Living with a disability can make life extremely challenging and very expensive. For this reason, the Canadian government has put certain tax benefits in place.

In some cases, the monetary benefits that are available to people with disabilities can also translate to their families. If you have a disability or you live with a loved one who has a disability, you can take advantage of government benefits by completing applications and submitting proof that you meet the program’s requirements.

One of the benefits you may qualify for is the Disability Tax Credit (DTC). If you struggle with a severe and prolonged impairment, learn more about the Disability Tax Credit and be informed when approaching the application process.

How to Apply for the Disability Tax Credit 

Applying for the DTC is a four-step process which begins with completing the first part of the Disability Tax Credit Certificate. This form is also referred to as the T2201 form, which is available to view online.

After you complete Part A of the form, you will be required to take the document to your physician. Depending on the disability you have, it is advisable that you take it to a specialist for your particular impairment. For instance, if you are visually impaired, it is advisable to take the form to an optometrist and not a general doctor. The specialist will need to fill out the form, and while some physicians charge for this, others will provide this service free of charge. (It may be best to call around and ask the medical professionals in your local area what their fees are before scheduling a visit for this service.) After the medical practitioner is done filling out the T2201 form, it is required that they sign the form to verify the information is true and correct before you submit it to the Canada Revenue Agency.

Once you’ve submitted the form, you may have to wait a while for CRA’s response. Usually an explanation is given if you are rejected for the tax credit. Unfortunately, contesting a denied application can take time, energy, and resources. Many applications are denied by the CRA because they are filled out incorrectly by medical practitioners. The National Benefit Authority offers specialized services that help people successfully apply for the Disability Tax Credit and get the full amount of money they are entitled to from government.

How the Disability Tax Credit Works

The purpose of the Disability Tax Credit is to reduce the amount of income tax that needs to be paid by the applicant. Once you are eligible for the tax credit you may claim the amount stipulated on your tax return. Eligible candidates for the tax credit include persons who have prolonged and severe impairments, either physical or mental. The idea behind the credit is to assist persons living with disabilities so that they can enjoy tax equity since they are subjected to unavoidable, unconventional expenses due to their respective and unique conditions.

Disability Tax Credit Qualification

Once you qualify for the Disability Tax Credit, you may be eligible to take part in other provisional, territorial and federal programs. For instance, you may be able to enroll for the Registered Disability Savings Plan (RDSP).

However, your greatest benefit may come in the form of retroactive payments. With the help of the National Benefit Authority, Canadians are successfully claiming thousands of dollars for their disabilities from government. Retroactive payments are available for the past 10 years of unpaid tax benefits and can amount in payments of (up to) $40,000.

Before applying for the Disability Tax Credit, it is advisable to involve The National Benefit Authority in your case. These benefit specialists are passionate about helping Canadians with disabilities. Their expertise in this area can guide you as you seek information about claiming disability benefits.

4 Comments. Leave new

I have to laugh at the Disability Tax Credit. My sister-in-law is a CGA and has done my taxes for me. I don’t qualify. While I am on full disability, and one not likely to go away any time soon, I don’t get enough money yearly “to qualify” Even though some medical expenses are not covered ( I had to pay just a little over $800.00 in medical/dental expenses not covered) I only get $9300.00/yr to live on. No, that’s not a typo. Nine thousand, three hundred dollars for all expenses, living and otherwise. So, if this issue could be tackled it would be great!! I believe people on permanent disability should at the very least be given more to live on. Often times, only 1 meal/day is all I can afford. I am unable to use public transit so therefore it is imperative that I have my own vehicle. I am presently awaiting a spot in low income housing (since 2008) but in an area where my Dr & I have agreed upon, there just aren’t enough. This also adds to my health/disability issues.
So, if any help can be obtained, may I suggest these two issues as well?? I haven’t always been on disability. I’ve worked most of my life. This hit out of the blue in 2007, and as I was only able to have minimum wage jobs, I was unable to afford any type of savings. I lived paycheque to paycheque but I enjoyed my jobs.

Hi Linda! You may qualify for the Disability Tax Credit If your disability is severe and prolonged. This credit may bring about annual tax savings, retroactive payments (for the past 10 years of unclaimed benefits), and provide financial relief for your supporting family members. Call us at 1888-389-0080 to discuss your case.

A bit surripsed it seems to simple and yet useful.

To qualify for the DTC you must have at least two of the disabilities on the CRA list. It doesn’t matter if you can’t work, or that you’ll likely never be able to work again – a mental illness is not good enough. I also have severe chronic pain, and have spent countless nights in the hospital over the past nine years! My doctors do not know the specific source of my pain, the best they can come up with is chronic pancreatitis (depending on which doctor you speak with). Much more needs to be done for people with the same circumstances, and I KNOW there are many of us!

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