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Are You Eligible for the Disability Tax Credit?

August 15, 2014

Completing-the-T2201-FormDo you wonder if physical or mental impairments qualify you for the disability tax credit?

The Canada Revenue Agency (CRA) offers tax breaks to some people with disabilities. Canadians can find out if they are eligible for this annual savings by filing the Disability Tax Credit Certificate or T2201 form. The tax credit is available to Canadians “who have a severe mental or physical impairments which markedly restricts the basic activities of daily living…” This also pertains to those who must, “dedicate time for Life Sustaining Therapy.”

Unfortunately, too many people have been denied the credit even though they struggle with severe diagnoses. It seems that one reason why individuals are denied the disability tax credit is because their T2201 forms did not prove that they require life sustaining therapies or that their “activities of daily living,” like walking, hearing, feeding, dressing, talking, eliminating, and mental functions are markedly or significantly restricted.

To breakdown the eligibility standards for the disability tax credit, let’s define “life sustaining therapy,” and “markedly/significantly restricted” as seen by the CRA. Then, explore the benefits of qualifying for the disability tax credit and learn how to file a successful application.

What Is Life Sustaining Therapy?

Do you follow a daily or weekly treatment plan to manage the symptoms of disability? Examples of life sustaining therapies include insulin shots, kidney dialysis, chest physiotherapy, and more. This term usually encompasses most types of therapies that are necessary to sustain your life or quality of life.

According to CRA guidelines on the disability tax credit certificate, one must devote a significant amount of time to such therapy. This therapy must “occur at least three times per week or more than 14 hours per week.”

What Does It Mean To Be Significantly Restricted?

Getting diagnosed with a disability can be scary; especially if it means you are “markedly or significantly restricted.”

Markedly restricted implies an individual struggles with “activities of daily living” like walking, feeding, talking, hearing, dressing, eliminating, mental functions, etc. A person who is markedly restricted because of disability may need assistance with one of these tasks most of the time.

Similarly, significantly restricted means a person often struggles with two or more activities of daily living. Different from markedly restricted, significantly restricted means two or more of these tasks can take an excessive amount of time to perform due to disability.

Claim Money with the Disability Tax Credit

If you use life sustaining therapies or fit the description of being markedly or significantly restricted, you may qualify for Canada’s disability tax credit. One of the benefits of this credit is that it is designed to alleviate the financial burden of paying taxes. Therefore, once you are granted the disability tax credit it is possible to claim an annual tax break and retroactive payments that amount up to $40,000. If you are not currently paying taxes on any income, then a supporting family member who incurs the cost of caring for you may be able to claim annual tax savings based on your tax credit. Either way, the disability tax credit is purposed to put more money into your pocket.

Beyond annual tax savings, qualifying for the disability tax credit creates opportunities to get involved with other government benefit programs, like RDSP – the Registered Disability Savings Plan.

Filing a successful disability tax credit application may be easier than you think. Contact The National Benefit Authority and have benefit specialists guide you through the process. They can help you understand how your disability qualifies you to receive this assistance.

If you are wondering whether or not your disability qualifies for the disability tax credit, it is best to file the T2201 form. Should your claim be denied and you still feel burdened by the daily cost of disability, apply again. When your claim is accepted in the future, it is possible to receive retroactive payments.

Refuse to let disability consume your time and cause debt. The government makes financial benefits available to people like you.


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