4 Things You Must Know About Canada Disability Tax Credit

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Canada Disability Tax Credit

Considered as a non-refundable tax credit to help the people with disabilities in Canada, the Disability Tax Credit in Canada aims to support such people by reducing their tax liability. Once eligible for Disability Tax Credit (DTC), the person is eligible to claim the specified amount.

With the lump sum of $25,000 and $ 2500 per year including the future as well as current taxes, these refunds are considered important for the people suffering from specified medical conditions.

If you want to know more about Canada Disability Tax Credit (DTC), this article is for you!

Who can claim the disability tax credit in Canada?

If you are suffering from a prolonged physical impairment or distorted mental functions with a lasting continuous period of at least 12 months and present for at least 90% of during such time, you are eligible to claim the disability tax credit Canada.

Some of the categories for individual impairments are as follows:

  • Walking
  • Speaking
  • Vision
  • Dressing
  • Elimination of crucial body functions such as bladder or bowel
  • Hearing
  • Distorted mental functions
  • A person availing life-sustaining therapy

Even if an individual with the impairment is having a job, he qualifies for the disability tax credit. The impairment obstructing the daily activities (as listed above) does not include housekeeping, working, social functions, or recreation.

The impairment along with its duration and side-effects should be certified by a qualified medical practitioner. All the charges incurred to certify by a medical practitioner can be claimed as medical expenses in your income tax on lines 330 and 331.

How do I apply for a disability tax credit in Canada?

To apply for a disability tax credit in Canada, you must complete and submit the certified form T2201 and Disability Tax Credit Certificate to the Canada Revenue Agency (CRA). Log in to the CRA website to get the T2201 certificate. Part B of the form must be completed and certified by a medical practitioner.

Steps to apply for a disability tax credit in Canada

  • Download the form T2201 from the CRA website
  • Complete Part A mentioned in the form
  • Get the part B completed by a certified medical practitioner
  • Submit the form, once completed to the CRA.

Who qualifies for disability credit?

The people with more than 90% of physical or mental impairment which is duly certified by the medical practitioner and are suffering from more than 12 months qualified for the disability tax credit. They must be incompetent to perform two or more basic daily activities.

Some of the medical conditions which qualify for disability credit are as follows:

  • Limited upper body mobility
  • Slowed walking due to foot disorder, hip/knee issue, Osteoarthritis, poor circulation
  • Cognitive issues like Alzheimer, Depression, Memory Loss, etc
  • Digestion disorders due to inflammatory bowel disorder, prostate, etc
  • Breathing disorders like Chronic Asthma, COPD, Tuberculosis, etc
  • Hearing impairment like poor hearing and need for hearing aids.

How much is the disability tax credit for 2021?

The non-refundable DTC is prescribed at $8,416 for an adult. An additional supplement of $5,003 is given to the child under the age of 8 leading to a total of $13,416.

Conclusion

If you are a citizen of Canada and suffering from any disability, you may consider the disability tax credit to receive the refund for the specified amount. It can also be claimed for your dependents under various inline sections.

Still, have a question? Feel free to reach out to Filing Taxes at 416-479-8532

Salman Rundhawa
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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