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Temporary vs. Permanent Disability Tax Credit Status

August 23, 2013
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Do you have a lot of medical expenses? Are you in need of disability support? Money is available for you. The first step to accessing these funds is to fill out the T2201 form. This is the tax code for the Disability Tax Credit – a disability benefits program available to Canadians with different types of disabilities.

TEMPORARY-VS.-PERMANENT-DISABILITY-TAX-CREDIT-STATUS

Applying for the Disability Tax Credit requires you and your medical practitioner supply an honest account of your unique circumstance. It is important to be as detailed as possible when filling out the T2201 form. This raises your chances of being granted disability benefits. It also affects how long your refunds will last. Are you going to receive temporary or permanent tax credit benefits? Explore eligibility requirements, evaluate your personal situation, and better understand why government offers lifetime disability support.

Are You Eligible for the Disability Tax Credit?

Before discussing the temporary and permanent issuance of this tax credit, it is important grasp how you might qualify for the disability support. While certain types of disabilities have symptoms that regularly qualify, there are no guarantees that a diagnosis will secure these disability benefits. To fill out the T2201 form best, you must note how one or more prolonged impairments causes you to be markedly restricted.

– Markedly Restricted refers to your ability to perform daily living tasks. When the Canada Revenue Agency (CRA) reviews a T2201 form, it relies on the medical practitioner’s explanation of disrupted daily living tasks (like walking, feeding, dressing, etc.). The government agency requires evidence that one or more activities are interrupted due to disability.

– Prolonged is the duration of your disability. You must have (or have had) the disability for a least a 12 months to qualify for the credit. The amount of time you’ve been impaired or will be impaired relates to how disability support will be issued to you. Again, the CRA relies on medical practitioner’s explanation of when the disability began and how long it is expected to impact daily living tasks.

Will You Receive Temporary or Permanent Status?

After the CRA reviews your case, a letter will be sent to notify you of your acceptance. In this message, it will state whether you have temporary or permanent disability benefits. If your Disability Tax Credit is limited to a certain amount of time, the letter will tell you the year it is set to expire. You will have to reapply at that time if you need disability support to continue.

Permanent status, on the other hand, means you will never need to reapply for the Disability Tax Credit.

Why Are There Two Different Statuses?

The Disability Tax Credit is broad in nature. It is meant to provide financial relief for people who spend excessive amounts of money and time on managing physical or mental impairments. Eligibility requirements allow people who need this type of disability support to rise to the top of the system. By issuing permanent or temporary status, the CRA has a way of balancing the scales. It allows them to determine who needs these disability benefits the most.

Some types of disabilities require lifelong assistance. Others can be cured or treated so that they do not disrupt daily living activities at all. The CRA follows this system in order to ensure that those who need the credit receive helpful disability benefits.

If you qualify for the Disability Tax Credit and receive annual tax refunds, stay up-to-date with paperwork and pay close attention to the expiration date. You will want to know ahead of time if you need to reapply.

If you have not qualified for the Disability Tax Credit but are experiencing a prolonged physical or mental impairment that causes limitations in your daily life, it may be time to fill out the T2201 form again. Many people may have applied for the Disability Tax Credit, been denied, and never appealed or re-applied. Resubmitting an application with thorough explanation from your medical practitioner could qualify you for temporary status at the very least.

Regardless of the types of disabilities you struggle with, there are disability support options available for you. Explore the disability benefits offered through the Disability Tax Credit program. To better understand the application process and benefit terms, reach out to benefit specialists who can guide you in this process. Call the National Benefit Authority (1-888-389-0080) or fill out this form to receive a free consultation: http://www.thenba.ca/free-consultation.html.

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