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Can Income be Too High to Qualify for the Disability Tax Credit?

September 08, 2013

Many people assume tax credit qualifications are income based. They are surprised to learn qualifying for the Disability Tax Credit has little to do with income. When it comes to the Disability Tax Credit, however, the Canada Revenue Agency is only interested in knowing how a physical or mental impairment affects a person’s day to day life.


Applying for the Disability Tax Credit is open to anyone regardless of what tax bracket he or she is in or how much money the household earns. Its purpose is to alleviate the financial burden of expenses due to disability. However, there are no restrictions on how the tax return is used; it can be spent on whatever an individual or family decides.

The Disability Tax Credit is…

A set amount of money that is adjusted annually and applied to the tax forms of individuals who qualify. This money is detracted from tax forms to create tax savings. A main benefit of the Disability Tax Credit is annual tax returns. Major benefits are available to many people who apply. There is $1,500 to $40,000 available to some individuals who are awarded the tax credit. The application process is the first step in securing regular, substantial payments from government.

The Disability Tax Credit is not…

Income assistance that pays for items (like healthcare) on one’s behalf. The tax benefit is a way to decrease taxes owed to government. This is why household income has no impact on whether or not an individual is eligible for the Disability Tax Credit. Ultimately, it is possible to spend the money freely; it is a way to supplement an income that is strained by the costs of medical expenses and living with a disability.

Anyone with a severe and prolonged disability is invited to apply for the Disability Tax Credit. While an individual’s income or household tax bracket has little to do with qualifying for the tax credit, it is a great value to people who currently earn taxable incomes.

The Disability Tax Credit Benefits…

The Disability Tax Credit is most valuable to people who have earned an income over the course of the past 10 years. This may result in up to $40,000 of tax refunds. For a person who has not been able to work due to disability, it is possible to transfer the tax credit to a supporting person. Large sums of money and annual savings come from the fund government reserves for people with disabilities. Therefore, people with disabilities are entitled to this money each year they qualify for the tax credit and up to 10 years prior.

Tax credit refunds can result in substantial payments. Even though a person’s tax bracket or household income does not affect eligibility, qualifying for the Disability Tax Credit is a challenge for most people. The National Benefit Authority makes Benefit Specialists available to anyone who wants to successfully apply for the tax credit. These individuals are prepared to inform and equip a person living with a disability through the application process and back-filing.

Every person who struggles with daily living tasks is welcome to apply for the Disability Tax Credit. There are options available for people of every income level. Even without earning a taxable income, the benefits program still opens doors for financial assistance.

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