What is the Disability Tax Credit?
According to the CRA, the Canadian Disability Tax Credit is a non-refundable tax credit that helps persons with disabilities or their caregivers reduce the amount of income tax they have to pay. This Canadian disability benefit creates greater tax equity by providing relief for disability costs.
When a person with a disability first hears about the Disability Tax Credit (DTC), a flood of queries usually follow, like how to apply for Disability Tax Credit, Disability Tax Credit eligibility, and even their potential Disability Tax Credit amount, which all vary on a case-to-case basis.
If you are eligible for Canadian disability benefits, but find yourself in a position where you are unable to recover all or part of this credit (because of the lack of taxable income), the Disability Tax Credit can be transferred to your spouse, common-law partner, or any other supporting family member.
Disability Tax Credit Eligibility
That leaves two key questions: what are the Disability Tax Credit eligibility guidelines, and how do you apply for the disability tax credit?
As we alluded to earlier, the answer isn’t straightforward. While the CRA sets rules and stipulations, the truth is anyone who qualifies for the Disability Tax Credit won’t know if they’ve qualified until the CRA processes the unique application.
In the broadest terms of Disability Tax Credit eligibility, three conditions typically must be met to apply for the disability tax credit:
- You must have a severe impairment in physical and/or mental functions all or substantially all of the time.
- This impairment should have lasted or is expected to last for a continuous period of at least one year.
- A qualified practitioner needs to certify that your impairment is severe and prolonged by completing the Disability Tax Credit Certificate, (otherwise known as the T2201 form).
Apply for the Disability Tax Credit with The NBA
Filling out the T2201 form and accompanying paperwork for the DTC application can be a meticulous, time-consuming process. More so, the necessary detail and diligence adds to the complexity, as an incorrect application can lead to a rejected submission or a reduced Disability Tax Credit amount.
The NBA specializes in all areas of the DTC and Canadian Disability Tax Credit benefits. Rest assured, we’ll get you the Canadian disability benefits you deserve. We’ve successfully filed over 40,000 Disability Tax Credit certificates for Canadians – we know the process and required details like the back of our hand, as our testimonials attest to.
We’ve processed more Disability Tax Credit applications than anyone else in the country, recovering upwards of $50,000 per claim for our Canadian clients.
If you think you may qualify for the DTC, fill out our free Disability Tax Credit Consultation form to see if you’re eligible to receive up to $50,000 from the CRA for your disability.
For more Disability Tax Credit information or any other queries about Disability Tax Credit eligibility, visit our FAQ, or call us today at 1-888-389-0080.