The Disability Tax Credit is a non-refundable tax credit that helps individuals with disabilities or their supporting family members reduce the amount of income tax they may have to pay. Its purpose is to offset some of the additional costs associated with living with a disability.
Read more, 'What is the Disability Tax Credit (DTC)?'
To find if you qualify for the Disability Tax Credit (DTC) in Canada, you need to assess whether you meet the eligibility criteria set by the Canada Revenue Agency (CRA). Here are some general guidelines:
Severe and Prolonged Impairment: You must have a severe and prolonged impairment in physical or mental functions. The impairment should significantly restrict your ability to perform one or more basic activities of daily living.
Duration: The impairment must have lasted or be expected to last continuously for a minimum of 12 months.
It's important to note that eligibility for the DTC is assessed on a case-by-case basis, based on the symptoms experienced rather than the condition itself.
To find out if you qualify for the disability tax credit, you can request a free review here.
The amount varies based on the tax year and whether the individual is a child or an adult and what province they reside in.
For adults, find out how much you may be eligible to receive, Disability Tax Credit Calculator
For children, The Child Disability Tax Calculator
Being eligible for the DTC can also provide access to other programs and benefits. Here are some key advantages:
- Tax Credit: The DTC is a non-refundable tax credit that can significantly reduce the amount of income tax you owe. It can provide tax relief to help offset the costs associated with your disability or impairment.
- Retroactive Refunds:If you were eligible for the DTC in previous years but didn't claim it, you may be eligible for retroactive refunds. This means you could receive refunds for past years in which you were eligible but didn't receive the tax credit.
- Disability Supplement: Once approved for the DTC, you may also be eligible for additional benefits and programs. For example, you may qualify for the disability supplement, which is an additional amount provided through certain income support programs, such as the Canada Workers Benefit (CWB) and the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit.
- Registered Disability Savings Plan (RDSP): The DTC is a prerequisite for opening and contributing to an RDSP, a long-term savings plan designed for individuals with disabilities. RDSPs offer potential matching grants and bonds from the Canadian government and can provide financial security for the future.
- Other Provincial and Territorial Programs: In addition to federal benefits, being approved for the DTC may also make you eligible for various provincial and territorial programs and services that provide additional support for individuals with disabilities.
Yes, you can request adjustments to your income tax returns for up to ten previous years if you were eligible for the DTC during those years but did not claim it. This can result in a significant disability tax credit refund.
To find out how much you may be eligible to receive, 'Disability Tax Credit Calculator'
The amount varies based on the tax year and whether the individual is a child or an adult and what province they reside in.
For adults, find out how much you may be eligible to receive, Disability Tax Credit Calculator
For children, The Child Disability Tax Calculator
Yes, you can. You can make use of many benefits of the disability tax credit if you have no or a low taxable income. One examples is the Registered Disability Savings Plan (RDSP) Disability Bond program which provides a $1,000 Disability Bond for low income individuals.
Yes, if you are eligible for the DTC but do not need the full amount to reduce your taxes to zero, your spouse or common-law partner can claim the unused portion.
Yes, if you do not need the full amount to reduce your own tax payable, you may be able to transfer the credit to a spouse, common-law partner, or another supporting family member.
Possibly. Every case must be assessed on a case by case basis, since approval depends on the symptoms experienced rather than the diagnosis of the condition itself. Request a Free Review and we can go over the eligibility criteria with you. We specialize in getting children approved for the Disability Tax Credit program.
Children who qualify are eligible supplement amount, in addition to the disability tax credit amount. To read more about the benefits available to children who qualify for the disability tax credit, you can read more here, The Child Disability Tax Credit and Calculator
If the person with the disability is a dependent child, either parent can claim the DTC, but only one parent can claim it per year. Generally, it should be the parent with the higher taxable income to maximize the benefit.
Yes, you can. The Disability Tax Credit is not income tested and can be used to reduce the amount of income tax paid each year. You will also want to explore the Registered Disability Savings Plan (RDSP) grant program as well many other benefits, once approved.
If your application is denied, we would be happy to review your information and let you know what your options are. We've successfully appealed many disability tax credit application requests.
Contact us by requesting a free review
Yes, you should. We often come across individuals who have been told they do not meet the eligibility criteria and subsequently but we are able to get them approved. Many misconceptions exist involving the disability tax credit and its eligibility criteria. Medical practitioners have a lot of responsibilities, so we can't expect them to know the ins and outs of the eligibility criteria of every available program.
The DTC application process can be challenging due to the detailed documentation and medical certification required.
We've been helping Canadians' get approved for the Disability Tax Credit since 2009. We provide Free Reviews, by going over the eligibility criteria for the DTC and other programs and review your tax information to determine how much you can expect to receive.
If you retain our service to assist you,
- We will communicate directly with your medical practitioner to ensure the required form gets completed properly and the necessary details are included.
- We will submit your application to the CRA, focusing on and highlighting the symptoms and wording the CRA looks for.
- We will complete the necessary paperwork to ensure you receive the maximum amount you're entitled to.
- We will handle all contact and follow up with the CRA on your behalf and keep you updated throughout.
Your information and privacy is paramount to us. We have been in business since 2009 and have focused on ensuring your information is kept secure since our inception. We understand the sensitive nature of the information discussed and maintain those details in a professional manner.
You can view our privacy policy here, Disability Tax Service's Privacy Policy
Absolutely. The disability tax credit is a non-refundable tax credit which reduces the amount of income taxes paid, so you do require a taxable income to receive a disability tax credit refund. If you do not have a high enough taxable income, such as on ODSP/AISH, to claim the disability tax credits yourself, you will need to explore your options for transferring your unused credits to a family member.
You can read more about the Disability Tax Credit and how it can be utilized by reading more here, The Disability Tax Credit and ODSP
Yes, it's common to not be make full use of the credits and benefits available.
Not necessarily. If your condition is permanent, you may not need to reapply every year. However, if your condition is temporary or may improve, the CRA may require periodic reassessments.
The approval period for the DTC can vary. Some individuals are approved for a specific period, while others may receive indefinite approval. The CRA may request periodic reviews to confirm continued eligibility.
Disability Tax Credit (DTC): A non-refundable tax credit to reduce income tax payable.
CPP Disability: A benefit from the Canada Pension Plan for individuals who have contributed to CPP and are unable to work due to a severe and prolonged disability.
Federal Disability Benefit: May refer to various federal benefits, such as the CPP Disability or the forthcoming Canadian Disability Benefit.
Provincial Disability Benefits: Programs like ODSP (Ontario Disability Support Program) or AISH (Assured Income for the Severely Handicapped in Alberta) provide financial assistance and support services to eligible residents with disabilities.
Yes, you can claim both the DTC and medical expenses on your tax return. These are separate credits and can be combined to maximize your tax benefits.
As of now, specific details on the new Canadian Disability Benefit for 2024 are still under development. What has been said is that the disability tax credit application will be used to determine eligibility for the program. If you qualify for the DTC, then you will be eligible for the federal disability benefits. The benefits provided will likely be income tested.
This proposed benefit aims to provide financial support to low-income Canadians with disabilities. Stay updated with announcements from the Government of Canada for the latest information.
Conditions like PTSD, ADHD, Autism, and Arthritis may qualify for the DTC if they result in severe and prolonged impairment that markedly restricts daily living activities or requires life-sustaining therapy.
Medical Conditions that Qualify for the Disability Tax Credit (DTC)
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A disability, for DTC purposes, includes severe and prolonged impairments in physical or mental functions that markedly restrict basic activities of daily living or require life-sustaining therapy. Examples include mobility issues, blindness, hearing impairments, and mental health conditions.
Medical Conditions that Qualify for the Disability Tax Credit (DTC)
Request a Free Review
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