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Disability Tax Credit for Seniors

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Disability Tax Credit for Seniors

With a wealth of disability tax credits and Canadian disability benefits designed for seniors, recognizing what you or an elderly family member may be eligible for can help him or her enjoy those golden years.

Here’s everything you need to know regarding the Disability Tax Credit for seniors, and other benefits in Canada, courtesy the Government of Canada:

Senior Disability Tax Credits

A senior suffering from a severe and prolonged impairment in physical or mental functions may fit the criteria for senior Disability Tax Credit eligibility. This non-refundable tax credit can help with the expenses of elder care services, disability services, home care services, assisted living, and other forms of elder care.

Disability tax credit eligibility is determined by completing Form T2201 – Disability Tax Credit Certificate, which must be certified by a qualified medical practitioner.

For more information on Tax Credits for seniors, click here.

Registered Disability Savings Plan (RDSP)

The RDSP is a savings plan that helps families save for the future of a person (senior) eligible for the Disability Tax Credit.

Note that RDSP contributions are not tax deductible, and can be made to the final year until the beneficiary turns 59.

To be eligible for the Registered Disability Savings Plan, you must become eligible for the Disability Tax Credit.

Learn more about the Registered Disability Savings Plan here.

Medical Expenses

Seniors can claim the total eligible medical expenses and disability services paid for them, a spouse or common-law partner, or the senior’s, spouse’s, or common-law partner’s children.

The latter only applies to children born in 2001 or later for any 12-month period ending in 2018, which was not previously claimed.

Certain expenses and senior care may qualify for the Medical Expense Tax Credit (METC) as well. These include: attendant caregroup or nursing home, and some dietary products.

Family Caregiver Amount (FCA)

If you’re caring for a senior with a severe impairment in physical or mental functions, you may be eligible to claim an additional $2,121 with certain non-refundable tax credits.

Keep in mind that if the total of the non-refundable tax credits exceeds your federal tax, you won’t be refunded for the difference.

Healthy Homes Renovation Tax Credit

The Healthy Homes Renovation Tax Credit helps seniors over 65 with the costs of making their homes more accessible and safe.

If you qualify, you can claim up to $10,000 in eligible home improvements on your tax return. The amount of money you receive for renovations is calculated as 15 per cent of the eligible expenses you claim. For example, if you spend and then claim $10,000 worth of eligible expenses, you could get $1,500 back.

Age Amount Tax Credit

The Age Amount Tax Credit can be claimed by you or an elderly family member if over the age of 65 on December 31, 2016, and net income is less than $82,353.

The federal age amount for 2017 is $7,225 ($7,125 for 2016).

Pension Income Amount

The Pension Income Amount allows seniors to claim up to $2,000 if they reported eligible pension, superannuation, or annuity payments on their tax return.

Pension Income Splitting

If you’re receiving pension, you can split up to 50% of your eligible pension income with a spouse or common-law partner.

Need help claiming your tax credits or benefits?

The National Benefit Authority provides security and stability for seniors, offering guidance and assistance in qualifying for and claiming Canadian disability benefits like the Disability Tax Credit for seniors.

Our in-house team of Disability Benefits Specialists have a deep understanding of the Disability Tax Credit application process, positioning you or a senior family member for a maximum monetary claim from the Canadian government.

Contact us today or apply online, or for more information about the DTC, RDSP, form T2201, or disability benefits for seniors.