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What is Disability Tax Credit?
The Disability Tax Credit is a non-refundable tax credit that helps Disabled persons reduce the amount of income tax they have to pay. The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face.
How long does it take to get approved for the Disability Tax Credit?
The Canada Revenue Agency will issue a Notice of Determination advising whether the eligibility has been allowed or disallowed within eight weeks of receiving your Disability Tax Credit. However, some applications are considered “complex” and take the CRA longer to process. This includes situations where additional information or clarification from the medical practitioner, or, supporting documentation from the taxpayer is required.
Who is Eligable for Disability Tax Credit?
In order to be eligible for the Disability Tax Credit you must be a Canadian taxpayer. You are eligible for the Disability Tax Credit only if the Canada Revenue Agency approves Form T2201. A medical practitioner has to complete and certify that you have a severe and prolonged impairment and must describe its effects. Nurse practitioners are able to certify Form T2201 as per the Federal Budget 2017.
If we have already told you that you are eligible, do not send another form unless the previous period of approval has ended or if we tell you that we need one. You must tell us immediately if your condition improves.
What disabilities qualify for the Disability Tax Credit?
Disability Tax Credit has eight categories of eligibility; Vision, Speaking, Hearing, Walking, Eliminating (bowel or bladder functions), Feeding, Dressing, and Mental Functions Necessary for Everyday Life.
Eligible disabilities include, but are not limited to:
- ADHD (Attention Deficit Hyperactivity Disorder)
- PTSD (Post Traumatic Stress Disorder)
- OCD (Obsessive Compulsive Disorder)
- Alzheimer’s
- Anxiety
- Depression
- Difficulty walking any extended distance (a city block)
- Chronic Pain
- Vision Impairment
- Hearing Impairment
- Crohn’s
and many more. Please contact us to discuss your situation.
When will I receive my Disability Tax Refund?
From the date your application is submitted to the Canada Revenue Agency, it can take anywhere from 3 to 6 months. The Canada Revenue Agency (CRA) will generally deposit the funds directly into your bank account, however you can choose to receive a cheque if you prefer.
Will the Disability Tax Credit cause any problems with my taxes?
No. In fact, the DTC can work in your favor, whether a refund (increase) or a payment (decrease).
How come I have never heard about the Disability Tax Credit?
The Disability Tax credit is a very specialized Tax Credit. At RCD, we have experts who are familiar with the application process and we will be here to help you through the process, from start to finish. You can read about the Disability Tax Credit (DTC) at the Canada Revenue Agency (CRA) website.
If the person with the disability is deceased can a family member still apply for the Disability Tax Credit?
Yes. As long as the person has been deceased for under ten years and there is an executor of the estate willing to participate in the application.
What if I owe money to the CRA?
Your debts will first be paid off to the CRA, and then the remaining balance will be issued.
How will I receive my Disability Tax Credit refund?
The Canada Revenue Agency (CRA) will either deposit your refund directly into your bank account, or mail you a physical cheque.
If I don’t earn any income, do I qualify for the Disability Tax Credit?
Can I complete an application on behalf of my child?
Yes. In addition, eligibility for the Disability Tax Credit can open the door to other programs such as the registered Disability Savings Plan (RDSP) and Child Disability Benefits (CDB).
I have applied before and failed, is it worth it for me to contact you?
Yes. In many cases we are able to appeal the decision on your behalf, or assist you with submitting a new application.
Is there any cost to use your Disability Tax Credit services?
The process for you is risk free- if benefits are not successfully awarded, there is no fee!