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Disability Reform – Increasing Disability Tax Benefits

August 22, 2013

Medical expenses in Canada are increasing. A person living with a disability experiences financial burdens like never before. The government of Canada recognizes this and offers tax credits to people with disabilities. Disability tax benefits are standard deductions applied to income tax forms. In addition, back-filing taxes can result in up to 10 years of retroactive payments. This means the government owes some people large sums of money (between $1,500 and $40,000!).


When seeking to understand how the government of Canada is taking care of the disability community, it is helpful to know about disability reform. In this post, discover how these benefit programs advance people as well as common concerns that emphasize the need for disability reform.

The Imperfect System

The tax system is not perfect. This is because every person has a unique situation, different needs, and various obstacles. Nevertheless, the system always needs to advance. Disability reform is necessary.

Often times, the amount of money one receives from government disability support is inadequate. These options are not able to offset financial hardship brought on by medical expenses. In fact, many of the people who need financial support most are not eligible to receive it.

Eligibility and Benefit

Currently, many disability support programs exist. As a result, many people with disabilities feel eligibility standards are high and benefits are low. To this point, it is important to recognize tax breaks supplement the incomes of those who have increasing medical expenses. It probably won’t be enough to replace income though.

Common Issues of Concern

More than eligibility, there are concerns about the delivery methods surrounding the Disability Tax Credit. Many aspects of living with a disability are time sensitive; common issues and questions come up. The following are some examples:

– How fast do people receive benefits?
– When an individual’s disability status changes, how quick is the system able to accommodate these changes?
– Is the government of Canada good at updating current information on individuals?

One of the most asked questions about government disability support is who delivers benefits?

Who Delivers Benefits?

Many provinces have unique systems for disability assistance. These are often used in conjunction with the government of Canada’s Disability Tax Credit. Federal benefits are often distributed in terms of income and not consider how much it costs to live in a particular location.

This raises another question: is it better for Provinces to care for their own, or should the federal government create a system that considers the cost of living in all areas?

Disability Reform and the Greatest Need

The greatest need for those who want to benefit from the Disability Tax Credit and other programs is to bring in some sort of income. Individuals who receive taxable income receive non-refundable tax breaks that free up large amounts of funds to make up for medical expenses. This allows for more financial support to become available.

More so, if a taxable income has been earned for years and a disability has been present during that time, significant refunds may be available. Between $1,500 and $40,000 may be claimed by filing for the Disability Tax Credit. Consider filling out the T2201 with the National Benefit Authority. These benefit specialists are equipped to guide people with disabilities in collecting the money government owe them.

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