Getting approved for the Disability Tax Credit can open up a number benefits to those who qualify. Not only will you or your caregiver be able to claim the disability tax credits, but approval also means you may eligible for additional savings.
We strive to ensure you get approved for the disability tax credit the earliest you are eligible to receive it (the furthest being ten calender years.) The year you first became eligible for the credit is often different than the date of diagnosis. During our initial assessment we will determine what year you first became eligible for the program, by thoroughly reviewing your information. This also involves communicating with your doctor and explaining why your eligibility began at that particular date. Making sure you receive the credit in every year you’re entitled to it is one of the many important steps in ensuring your application is successful. Remember the disability tax credit also is used to determine eligibility for a number of other programs as well, which you can often go back and claim retroactively.
Once you’re approved for the Disability Tax Credit you will continue to be eligible for yearly savings. The potential savings for just one year of the disability tax credit alone is approximately $1,600 a year (the amount is indexed each year based on the rate of inflation.) Going forward ten years that’s a savings of $16,000. Once approved for the Disability Tax Credit (DTC) you may also be eligible for additional programs, such as the Registered Disability Savings Plan (RDSP), Disability Bonds, Disability Grants, which will increase your future savings significantly. The advantage of using Disability Tax Service is that we will make sure you’re informed about all of your options and continue to provide you with advice in the future, free of charge.
Once you have been approved for the Disability Tax Credit, you may be able to setup up a Registered Disability Savings Plan (RDSP). The RDSP is a long-term savings plan, separated into two components, grants and bonds. It was introduced by the Federal Government in 2008. Both are briefly are explained below:
The Canada Disability Savings Bond:
- Setup to assist those who have a low to modest income (If beneficiary’s family income is below $41,544)
- You do not need to make a contribution to the RDSP to receive the bond.
- If you qualify for the bond, you receive up to $1,000 a year, with a limit of $20,000 over a lifetime.
The Canada Disability Savings Grant:
- Setup to match contributions made to the RDSP, up to 300%. (If beneficiary’s family income is below $81,941)
- The maximum grant is $3,500 a year, with a limit of $70,000 over a lifetime.
- Every year, the first $500 you contribute to the Grant, the government will contribute an additional $1,500 to your RDSP.
- Additionally, if you contribute another $1,000, the government will contribute an additional $2,000 to your RDSP.
- This results in a government grant of $3,500, if you or a family member contributes $1,500 to your RDSP. This contribution and grant can be applied every year.
There are also additional supplements for children, caregivers, home buyers, tuition which you may be able to claim as a medical expense. We will review your potential to claim these additional supplements, as well as the disability tax credit during your initial free assessment.
For more information, check out our Frequently Asked Questions (FAQ) page.