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Rules for Transferring the Disability Tax Credit

September 18, 2013

Canada Revenue Agency’s disability support program comes in the form of a non-refundable tax credit. This means individuals who earn taxable incomes are able to receive refunds and substantial retroactive payments. The problem is that many people with disabilities are unable to work jobs that earn incomes to support themselves.


Those who are unable to work can secure financial relief by accessing disability support programs. A person suffering from a severe and prolonged physical or mental impairment is entitled to the Disability Tax Credit.

This tax credit is issued by Canada Revenue Agency (CRA). The CRA has money reserved for people with disabilities. Claiming the Disability Tax Credit even without earning an income is possible. A qualified beneficiary is able to transfer the tax credit to a supporting person.

The Disability Tax Credit is Transferrable

Transferring the tax credit is a great way to secure financial relief for those supporting a person living with a disability. Everyone requires food, shelter, and clothing to live. Therefore, if an individual does not earn money for these items him or herself, it is likely that a supporting person provides the “basic necessities of everyday life”.

Contrary to popular belief, a person with a disability can receive benefits of the Disability Tax Credit through a parent or spouse. In addition, a supporting person may be a sibling, aunt, uncle, son, daughter, grandparent, or grandchild. The tax credit can also be transferred to a common law partner.

How is a Supporting Person Approved for the Transferred Disability Tax Credit?

A supporting person may be approved if he or she provides some sort of financial assistance to an individual living with a disability. The CRA is open to transferring the Disability Tax Credit when this support is offered for “basic necessities of everyday life”. This includes financial help in obtaining food, shelter, or clothing. It is only necessary that the supporting person offer assistance in one of these areas – not all three.

Why Consider Transferring the Disability Tax Credit?

Transferring the Disability Tax Credit is a great option for people who are not able to earn a taxable income but still qualify for the tax credit. It could save the supporting person money and will compensate for any expenses due to disability.

The credit can be transferred for the years a supporting person receives this financial support. Therefore, it is possible for the supporting person to receive retroactive payments that result in $1,500 to $40,000 of government funds. This money is reserved for people with disabilities. It can also be accessed by the qualifying beneficiary or a supportive family member.

Transferring the Disability Tax Credit is one of the more difficult tasks of securing these refunds. This is where the National Benefit Authority can help. Benefit Specialists guide individuals through the process of applying for the tax credit and transferring it to a supporting person. The National Benefit Authority can be reached by phone at 1888-389-0080 or by filling out this form: Free consultations can provide information about the Disability Tax Credit and open doors to substantial savings.

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