The Benefits of the Disability Tax Credit

 

Getting approved for the Disability Tax Credit (DTC) can open up a number benefits to those who qualify. Not only may you be eligible to receive $1,600 to $2,000 a year ($3,000-$4,000 for children) but it also opens up doors to other benefits and supplements.

Claiming Credits in Previous Years
Future Savings
Registered Disability Savings Plan (RDSP)
Additional Supplements
Question?

Claiming Credits in Previous Years

Claiming the disability tax credit retroactively, in previous years, can result in a substantial tax credit from the Canada Revenue Agency (CRA). The total amount received can vary for a variety of reasons, the primary one being when an individual’s eligibility for the Disability Tax Credit (DTC) first began.

The year of getting diagnosed with a condition is often not the same year eligibility for the DTC first began.  Often symptoms are present long before that year. During your free consultation, we will determine what year you first became eligible for the disability tax credit, by reviewing your information and focusing on the details the CRA looks for when making their decision.

Be aware that some medical practitioners can be quick to mark off the year of diagnosis or a more recent year when completing the information for the CRA.  This mistake could result in a significant loss and reduction in a disability tax credit refund.

An adept understanding of the eligibility criteria is required to determine the year eligibility begins for the disability tax credit.

Future Savings

Once approved for the Disability Tax Credit, you will continue to be eligible to receive the disability tax credit every year. The potential savings for the disability tax credit is $1,600 to $2,000 a year.  Over ten years that is savings of $16,000-$20,000.

One advantage of using our service is that we will make sure you are informed about all of the programs available to you and continue to provide you with guidance in the future.

The Registered Disability Savings Plan (RDSP)

Once you get approved for the Disability Tax Credit, you will want to set up a Registered Disability Savings Plan (RDSP). The RDSP is a long-term savings plan providing benefits in the form of disability savings grant and bonds.  The RDSP was introduced in 2008 and offers significant savings to those who know how to navigate the program.

The Canada Disability Savings Bond:

  • The Disability Savings Bond is $1,000 a year.
  • Your family income must be $45,916 or less.
  • If your family income is above $30,000 but less than $45,916, you will receive a portion of the $1,000 Disability Bond.

The Canada Disability Savings Grant:

  • When you contribute $500 to an RDSP, the government will contribute $1,500 to your RDSP. You can do this once per year.
  • When you contribute an additional $1,000 to your RDSP, the government will contribute $2,000 to your RDSP.
  • That results in an RDSP accumulating $5,000 every year, from a $1,500 contribution.

Additional Benefits

There are also additional supplements for children, caregivers, home buyers, RESPs. We will review your potential to claim these additional supplements, as well as the disability tax credit during your initial free assessment.

Have a Question?

For more information, check out our Frequently Asked Questions (FAQ) page.