Answering Your Questions about the Disability Tax Credit

The government of Canada recognizes the challenges of living with disability. Does your physical or mental health qualify you for the disability tax credit?

Find out the answer to this and other questions on the National Benefit Authority’s blog (http://www.disabilityliving.ca/).

A person with a disability is encouraged to use tax savings as a way to alleviate high living costs. The disability tax credit supplements his or her income. Any citizen can apply.

DO YOU QUALIFY FOR THE DISABILITY TAX CREDIT?

The tax credit is available to Canadians “who have severe mental or physical impairments which markedly restrict the basic activities of daily living…”. This also pertains to those who must “dedicate time to life sustaining therapies.” To break this down, let’s define life sustaining therapy, significant restriction, and taxable income as seen by the Canada Revenue Agency: http://www.disabilityliving.ca/do-you-qualify-for-the-disability-tax-credit/.

WHAT IS THE T2201 FORM?

The T2201 form is the official code for the Disability Tax Credit Certificate in Canada. In order to qualify for this tax credit a T2201 form must be completed and sent into the Canada Revenue Agency (CRA). Many people have questions about the T2201 form, filling out the disability tax credit certificate, and applying for benefits from the government of Canada. Get answers to these questions here: http://www.disabilityliving.ca/completing-the-t2201-form/.

WHICH PAPERS DO I NEED TO KEEP AND WHY?

Government isn’t always reliable or timely when it comes to organizing paperwork. Do you know the saying, “when in doubt- throw it out?” For people with disabilities, this saying is null and void. In fact, do the opposite. It is best to make copies of all paperwork and have a separate filing system to keep all duplicate documents. Learn about what papers you need to keep and why you need to keep them: http://www.disabilityliving.ca/too-much-paperwork/.

Have you explored the T2201 form? Are you considering how to apply for tax benefits? Do you have questions about the disability tax credit certificate?

These are some questions being asked on the Disability Living blog. Don’t hesitate to reply to a blog post with your questions about the disability tax credit. The National Benefit Authority serves people with disabilities (http://www.thenba.ca/). Their benefit professionals are able to answer your questions and help get money that is reserved for you from the government of Canada.