Do you qualify for the Disability Tax Credit?

The Government of Canada offers a variety of tax benefits to people with disabilities. These benefits are provided under the assumption that people with disabilities will have unavoidable, additional expenses that other taxpayers do not face. The Disability Tax Credit (DTC) is intended to act as a fairness measure for people with disabilities and their families.

Created in 1988, the Disability Tax Credit is a non-refundable tax credit. Non-refundable means it was designed to help reduce a person’s taxable income to zero. Suppose the application of the credit results in a negative tax owing. In that case, no refund is issued, but any amount of the credit that the person with the disability does not need to reduce their taxes to zero can be transferred to a supporting person.

If a taxpayer has failed to claim the DTC for a particular taxation year, they can file amended tax returns for up to 10 years and receive the full benefit for each of those years.

To apply for the DTC, information relating to your disability must be reviewed by the Canada Revenue Agency by submitting form T2201, Disability Tax Credit Certificate. You can click here to download it. People with visual impairments can obtain a large print version here.

The application process for the Disability Tax Credit is not complicated. Most can avoid paying someone else to do it by simply following the application process. However, some people, such as seniors, are uncomfortable undertaking the process themselves. In that case, they should utilize the services of a fully qualified Chartered Professional Accountant. If you fall into that category, or you have any questions, don’t hesitate to contact us for assistance.