The Disability Tax Credit Retroactive Payments
There is a first time for everything. Applying for the Disability Tax Credit is a big step. This may result in financial support for years to come. Better yet, many people find they were qualified for disability support prior to when they filed. For those who could have registered years ago, it is acceptable to back-file.
Back-filing taxes is one of the greatest benefits offered through the Disability Tax Credit. The Disability Tax Credit makes an individual’s taxable income zero. Retroactive payments can go back 10 years and reimburse an individual for the money he or she paid in income tax during that time.
Securing these payments involves more work than completing the T2201 form. It requires looking at your tax forms from the past and proving to the CRA that the disability was prevalent then as it is now. With large refunds available (up to $40,000) there are many reasons to consider back-filing taxes. Before starting the process of filing this claim, learn more about retroactive payments and how the CRA processes financial support through the Disability Tax Credit.
Back-filing taxes is the best way to secure full reimbursement of the money paid into the tax system. This often results in large sums of money. Even without taking advantage of this Disability Tax Credit sooner, benefits from years past are still available.
What You Need To Know About Receiving Retroactive Financial Support:
Accessing the money put into the tax system requires back-filing taxes. The Canada Revenue Agency limits how far back one can file. An individual may claim up to 10 years of taxes and receive retroactive payments for the taxes they paid during that time.
How Does The Canada Revenue Agency Process Retroactive Payments?
After qualifying for the Disability Tax Credit, back-filing is optional. This entire process can take several months to complete. Any time a significant amount of money is available through a tax refund, the Canadian government needs to carefully evaluate the case. To ensure the fullest extent of disability support, it is necessary to write a claim letter to Canada Revenue Agency.
The National Benefit Authority (NBA) exists to help people with disabilities get the money owed to them by the Canada Revenue Agency. Benefit professionals are equipped to help individual’s find out whether or not they qualified for the credit anytime in the previous 10 years. Team up with the NBA and file a successful application for the Disability Tax Credit and receiving full refunds.