Disability Tax Credit Maximum for Children | The NBA
Currently, a disabled adult can claim up to $20,000 for the Disability Tax Credit (DTC), and a disabled child (under 18 years old) can claim up to $50,000 for the DTC based on the province that they are in.
Why is there such a big difference?
“$50,000 for children and $20,000 for adults?? What, do children have credit card debt or bills to pay”!? – A comment on The NBA’s Facebook page
While the comment is hilarious, there is some truth to it. Raising children is already a costly
(and beautiful) endeavor, but raising a child with a disability can incur more expenses over time. The Disability Tax Credit is meant to help parents and guardians alleviate some financial stress.
Of course, children under 18 cannot actually claim any eligible credits themselves without taxable income. What happens in this case is that the eligible credit is claimed by the child’s parents or guardians as the Disability Tax Credit is a transferable credit.
Everybody is allowed the same number of credits every year. Whether you can claim all the credits is dependent on your individual tax situation. For children under 18, the Canada Revenue Agency allows a supplementary amount that increases your refund.
When your child is eligible to receive the Disability Tax Credit, they are also eligible to receive the Child Disability Benefit, a tax-free benefit that fluctuates annually. The amount you receive back is affected by your family net income. It is very beneficial for families with dual income.
The maximum refund for children is up to $50,000 when we take into consideration the additional credits and benefits a child receives through the Disability Tax Credit, going back 10 years.
We hope this explains the difference between children getting the Disability Tax Credit vs. adults.
