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As defined by the Canada Revenue Agency, the Child Disability Benefit (CDB) is a tax-free benefit worth up to $2,730 (for the 2016 tax year) for families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions. This amount fluctuates annually, and is paid out monthly. The actual amount you receive back from the CDB is affected by your family net income.
The CDB can only be collected by a family if the child is eligible for the Canadian Disability Tax Credit.
Possibly. It doesn’t solely depend on the condition so much as how the condition affects them. Your child must have a severe or prolonged impairment in physical or mental functions; a condition is only considered ‘prolonged’ if it has lasted, or is expected to last, for a period of at least 12 months. This eligibility requirement is not limited to just disabilities or specific diagnosis, but to any medical condition that fits the CRA’s Disability Tax Credit eligibility requirements.
In other words, it’s more about how a certain condition affects one’s basic activities of daily living, rather than the name or classification of the condition itself.
Additionally, you’ll need to be able to prove your child has a physical or mental disability when you apply for the Disability Tax Credit with support from your medical practitioner. Learn about the Disability Tax Credit application process or get the Disability Tax Credit Certificate here.
The Child Disability Tax Credit is retroactive for up to 10 years.
You’ll require a doctor to certify when your child’s disability first began seriously affecting their daily life and you need to make an adjustment request for each individual year you wish to make a Child Disability Tax Credit retroactive claim.
From memory loss in children to mild intellectual disabilities, a wide array of physical and mental disabilities may qualify for the Child Disability Tax Credit. While we mention that not one specific disability or diagnosis qualifies you for the tax credit, there are common conditions that may get your child qualified.
Here are some of the most common disabilities in children that qualify for the Disability Tax Credit: