Canada Disability Tax Credit (DTC) is a non-refundable credit that can be used to reduce your taxes owed. The Disabled Tax Credit is available to people with severe or persistent physical or mental impairment. Therefore, depending on the situation, you can claim this credit for yourself or on behalf of your loved one.

How to apply for the Disability Tax Credit?

There are a list of medical conditions that qualify for the disability tax credit

If you are having any difficulty in speaking, hearing, walking, feeding yourself, or some other severe ailment that affects your day-to-day living, then you have a chance of being qualified.

Some of the conditions include:

How to understand the DTC estimation process?

After Form T2201 is received by the Canada Revenue Agency (CRA), then it will estimate the validity of your claim.

What other benefits can you be eligible for?

  1. The Family Caregiver Amount Tax Credit: If you have an adult or child with a severe physical or mental disability, you could be qualified for this tax credit. 
  2. Canada Pension Plan(CPP) Disability Pension: This is a taxable monthly payment available to those who have contributed to the CPP but cannot work due to their disability.
  3. CPP Post Retirement Disability Benefit: A monthly benefit for people who have contributed to CPP but are under 65 years of age and can’t work because of their disability. 
  4. Children’s CPP Benefit: This is a monthly benefit for dependent children of someone who is obtaining a CPP disability benefit. 
  5. Registered Disability Savings Plan (RDSP): A savings plan that helps you save for long-term financial well-being for someone who’s qualified for the DTC.
  6. Canada Disability Savings Bond: If you’re receiving the RDSP, you may be qualified for a savings bond of up to $1,000 a year, based on your family income. 
  7. Medical Expenses Tax Credit: You can claim some medical expenses applicable to the disability you have.

How to claim the DTC for Previous Years?

If the rating agency decides that you are eligible for the DTC in previous tax years, you can submit it for that credit. You can also do this by submitting Form T1-ADJ by mail or through your CRA account. The rating agency will then review your adjustment requests and send you the refunds due.

How to claim the DTC for Yourself?

How to claim the DTC for a Dependent?

Can a learning disability approve for the DTC?

A person with a learning disability may be eligible, but it all depends on the severity of the disability and how it affects daily life. For approval, even you can work with your healthcare professional to develop the strongest case for the difficulties you face living with a learning disability.

Even, you can rate your DTC in My CRA Account. To subscribe to the CRA's "My Account" online service, you must provide your social security number, date of birth, current postcode, and information from your most recent tax return to prove your identity. Hence, you get the approval for the DTC.

For more details, you can call us or visit our website if you want to know about Disability Tax Credit in Canada.

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