The Trouble with Completing the T2201 Form
The code for the Disability Tax Credit Certificate offered by the Canada Revenue Agency (CRA) is T2201. This form can be filed at any time. When it is filled out correctly, it can qualify a person living with disability for the Disability Tax Credit. This credit is meant to reduce an individual’s taxable income to zero. The tax savings can be used for any purpose. In addition, it is possible to back-file and receive tax refunds going back 10 years.
This is to say, filling out the T2201 form is important. The Disability Tax Credit Certificate consists of nine pages. Even though it is brief, it causes a lot of trouble to citizens who try to complete it on their own. Much of the problem stems from the forms two parts: Part A is a one page self-assessment and Part B is an eight page questionnaire that needs to be completed by a medical professional.
The Canada Revenue Agency may take months to process an individual’s T2201 form. If any part of the Disability Tax Credit Certificate is incorrect it can be denied. Reapplying takes even longer and implies a person living with a disability will continue living without tax benefits.
To avoid this from the start, contact benefit specialists who ensure the T2201 form is filled out right the first time. The National Benefit Authority is the lead agency helping people with disabilities get money they are entitled to by the government of Canada.
Here is what to expect from specialists guiding a successful filing of the Disability Tax Credit:
Step One- Complete the Self-Assessment Questionnaire
In the instructions prior to Part A there is a self-assessment questionnaire to complete. Eligibility for the Disability Tax Credit is indicated when all boxes are applicable and receive “yes” checks.
When completing the assessment, keep in mind that many phrases on the T2201 form, like “life sustaining therapy,” are broad. Instead of worrying about filling in the right response, volunteer honest information about the processes necessary for regular care and how disability interrupts daily life.
Step Two- Access the Official T2201 Form
It is possible to access the T2201 form in many ways. However, sending in a photocopy or facsimile is grounds for immediate disqualification. Be sure to have a format that will be approved by the Canada Revenue Agency. Once the official document is in hand, it can be filled out on a computer. This makes it possible to type information directly onto the PDF (which avoids confusions caused by handwriting).
Step Three- Fill in Personal Information
Personal information (including address, social insurance number, and date of birth) is required on Part A of this form. In some cases, a family caregiver may be claiming the tax credit. If someone other than the individual living with a disability is claiming the tax credit, it is necessary to include the relationship he or she has with the dependent. It is also important to define the type of dependency and include a binding signature that indicates the information provided is accurate. Also, the person with the disability (the dependent) must sign off that they have authorized someone other than themselves to receive the tax credit.
Step Four- Have a Medical Practitioner Fill Out Part B
Entrust the Disability Tax Credit Certificate to a medical practitioner who will complete the following eight pages.
To complete the forms accurately, practitioners need to understand two things:
1) They must take into account how long impairment has lasted or will last. It is also necessary to consider the effects the impairment has on daily living. Because this requires specific information, it is a good idea to interview the person living with a disability and compare his or her scenario with a patient who is of similar age but does not have a disability.
2) Practitioners only need to fill out sections of this form that directly relate to their patients. It is okay to leave sections blank if they do not apply to an individual’s circumstances. If a section is not applicable, simply check the box in the blue area beside the words, “Not applicable” and move on to the next section.
– Elimination (bowel and bladder functions)
– Multiple functions
As stated above, some of these sections may apply while others do not. All information must be answered in terms of duration and severity of effects.
Step Five- Part B Continued
The final two sections of Part B ask questions about life sustaining therapies and physical or mental restrictions. A practitioner will need to explain the type of therapy the patient receives and the amount of time this therapy requires each week. Also, the practitioner must supply information about when the condition began and verify that the patient meets Canada Revenue Agency’s Disability Tax Credit requirements.
Filling out the T2201 form requires honesty and attention to detail. A person living with a disability (or supporting person) and his or her medical practitioner must be thoughtful when supplying information and defining effects of the condition.
Many aspects of the Disability Tax Credit Certificate can easily go wrong. This is why it is valuable to have benefit professionals assist the process of filing the T2201 form. The National Benefit Authority offer services that help individuals according to their unique needs. Contact the Disability Tax Credit agency for a free consultation.