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Is Taxable Income a Must for the Disability Tax Credit?

September 04, 2013

A popular myth about the Disability Tax Credit is that only people with taxable incomes qualify. While a taxable income gives value to the Disability Tax Credit, it is not necessary for qualification.


All too often people shy away from applying for the Disability Tax Credit because they have no way of earning money. But the government of Canada set up the benefit program to support individuals in these types of situations. It was never intended to deter those who don’t have jobs from applying for the Disability Tax Credit. Still, some people without taxable incomes are under the impression they will not qualify because of this fact alone.

Eligibility Standards for the Disability Tax Credit

Eligibility for the Disability Tax Credit is consistent and not dependent on an individual’s financial status. A person with a prolonged disability that prohibits preforming daily living tasks may qualify. In some cases, the persistent and time consuming use of life sustaining therapies is a factor too.

None of these requirements mention taxable income. However, the Disability Tax Credit increases in value when it is applied to an individual who has taxable income.

The Value of the Disability Tax Credit

The Disability Tax Credit is still a valuable financial option even without taxable income. Many people who do not earn money now, have in the past. The Disability Tax Credit can refund money for past years. Back-filing can return a substantial amount of money to an individual (between $1,500 and $40,000!).

Another source of value comes from the transferable nature of the Disability Tax Credit. Any supporting person can receive the tax credit and reduce his or her taxable income. This includes parents of young children and caretakers of a person with restrictive disabilities. After a person living with a disability is awarded the tax credit, it can be applied to the supporting person’s income tax.

Benefits of Qualifying for the Disability Tax Credit

The value of the Disability Tax Credit goes beyond tax refunds. Many doors open to those who qualify to receive the Disability Tax Credit. An eligible beneficiary is more likely to be accepted into other benefit programs.

Applying for the Disability Tax Credit is the best way to increase eligibility for more disability support. In addition, the tax credit may earn money for an individual who doesn’t have a taxable income. This may be done by transferring the tax credit or back-filing for the past 10 years. There is no harm in applying for this support program. In fact, the broad range of benefits is too valuable to not apply.

Beginning the application process is easy. Contact the National Benefit Authority for a free consultation. The benefit specialists can help clarify the eligibility standards for the tax credit. With the assistance of professionals, it is possible to simplify this process and fill out the paperwork right the first time. The NBA is the most trusted source of support for people with disabilities in Canada. Specialists at the agency can be reached by phone at 1888-389-0080 or contacted online: Follow the link and fill out the form to better understand what support is available through government.

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