What if Your T2201 Form is Denied?
The government of Canada has money reserved for people with disabilities. Through the Canada Revenue Agency’s Disability Tax Credit, a standard deduction is offered and taxable income can be lowered. This frees up funds to supplement an income of a person living with a disability. The first step in qualifying for the Disability Tax Credit is to complete the T2201 form.
Like any substantial benefit package, the beneficiary needs to be prepared and knowledgeable about the application process. It is nice to know how much time it will take to hear back from the CRA because disability support is only granted after the government of Canada determines eligibility. In addition, it is important to have a back-up plan in case the Disability Tax Credit Certificate is denied.
What to Expect after Filing the T2201 Form
No one knows for certain how long it will take for the Canada Revenue Agency to respond to a Disability Tax Credit request. However, when they do, the process may follow this pattern:
– A notice from the revenue agency will inform an individual that his or her application qualified for the Disability Tax Credit Certificate. Sometimes, if there is backlog in the system, a notice may be sent indicating a delay and estimating how much time before the form will be reviewed.
– Should the notification state an applicant has been denied, it will also explain exactly why the T2201 form was not accepted.
– Often times, a form is denied because it does not include all the information requested. Filling out the T2201 form right the first time ensures the Canada Revenue Agency can review the claim faster and provide benefits quickly.
After receiving a note of denial, there are options a recipient can take to re-file or file a formal objection.
Following Up After Your T2201 Form is Denied
OPTION 1- Re-file
– In order to re-file the Disability Tax Credit Certificate, review the notice received from the Canada Revenue Agency. Try best to understand why the T2201 form was rejected in the first place.
– If the form requires more information, it is a good idea to consult the practitioner who filled out the form. There may be additional details they can offer that will support the case.
– Also, consult other medical professionals. One practitioner may understand the severity of a mental or physical issue better than another.
– Have professional consultants assist in completing and filing the form.
If re-filing does not seem like the right option, then filing a formal objection may be necessary.
OPTION 2- Formal Objection
– There is a formal process for appealing the Canada Revenue Agency’s decision. The grievance will be filed with the Tax Court of Canada.
– It is possible to file a formal objection within 90 days of receiving the notice.
– It is important to understand and clearly explain why the Disability Tax Credit is deserved and necessary.
The best way to handle the Canada Revenue Agency rejecting a Disability Tax Credit Certificate is to have it completed right the first time. To ensure a successful application, team up with benefit specialists at the National Benefit Authority. The largest tax credit agency serving Canadians with disabilities is equipped to help people get money owed to them from government.