Why Children Need the Disability Tax Credit

The Disability Tax Credit offers more than financial benefits. People who qualify for this support program are able to claim up to $40,000 and annual tax savings. More so, the Disability Tax Credit raises chances of qualifying for other financial support opportunities too.

This is the case with two benefit programs: the Canada Child Tax Benefit and Child Disability Benefit. Similar to the Disability Tax Credit, these programs are meant to alleviate the financial burdens of raising children with disabilities. Pursuing these options begins with taking the first step.

Starting with the Disability Tax Credit

Applying for the Disability Tax Credit begins with completing the T2201 form. To file a successful Disability Tax Credit Certificate, the applicant must meet qualifications laid out by the Canada Revenue Agency. With a severe and prolonged physical or mental impairment, a child may be eligible for this tax credit. The long-term benefits come in the form of annual tax savings and can serve as compensation for families with excessive medical expenses. More so, through this program, thousands of dollars are available to people with disabilities.

The Disability Tax Credit Helps Qualify for Other Programs

A child must qualify for the Disability Tax Credit in order for the family to receive the Child Disability Benefit (CDB). While the CDB is comparable to the Canada Child Tax Benefit (CCTB), qualifying for one does not guarantee the other. However, it is important to file the Disability Tax Credit Certificate before applying for the CDB and CCTB.

Being granted the Disability Tax Credit is possible for those who have severe and prolonged disabilities. These may be mental or physical challenges that interrupt daily living tasks. Many children are eligible for the Disability Tax Credit; unfortunately, parents or guardians may be unsure of necessary prerequisites.

It is impossible to know if a child will receive the Disability Tax Credit before the T2201 form is submitted. Each application is viewed by the Canada Revenue Agency. A beneficiary is considered based on how the disability affects his or her life from day-to-day.

Teaming up with Benefit Specialists is important when caring for people with disabilities. They can help families understand all the options and how to go about applying for the many benefits available. Contact these professionals for a free consultation. The NBA can assist families, helping them to receive benefits that are owed to them.

Qualifying for the Disability Tax Credit is the first step towards receiving benefits to assist the costs of caring for a disabled child.