Disability Tax Credit
July 6, 2017 10:42 amDoes you child need insulin therapy? Do you have hearing loss? Have you undergone surgery which led to complications? Lots of Canadians are entitled to the Disability Tax Credit and are not collecting it and in many cases, they are not collecting retroactively but they may be entitled to do so.
What is the Disability Tax Credit?
The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the
amount of income tax they may have to pay. An individual may claim the disability amount once they are eligible for the DTC. This amount
includes a supplement for persons under 18 years of age at the end of the year.
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.
Being eligible for the DTC can open the door to other federal, provincial, or territorial programs such as the registered disability savings plan, the working income tax benefit, and the child disability benefit.
Am I eligible for the DTC?
There are different ways a person can be eligible. You person must meet one of the following criteria:
- You must be markedly restricted in at least one of the basic activities of daily living; A person is markedly restricted if, all or substantially all the time (at least 90% of the time), he or she is unable or takes an inordinate amount of time to do one or more of the basic activities of daily living, even with therapy (other than life-sustaining therapy) and the use of appropriate devices and medication.
- You must be significantly restricted in two or more of the basic activities of daily living; speaking, hearing, walking, eliminating (bowel or bladder functions), feeding, dressing, mental functions necessary for everyday life.
- You need life-sustaining therapy
- You are blind
In addition, your impairment must meet all of the following:
- is prolonged, which means the impairment has lasted, or is expected to last for a continuous period of at least 12 months
- is present all or substantially all the time (at least 90% of the time)
How Can I apply?
We can provide you with a form for a doctor to fill out. Then, we can submit a request to adjust your tax return. Let us help – you likely have money coming your way!
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