Do you know what the Disability Tax Credit is?
The Disability Tax Credit (DTC) was established by the Canadian Government and the Canada Revenue Agency (CRA). It is a non-refundable tax credit and its goal is to help Canadians with disabilities and/or their families pay less income tax. The supporters would be required to pay on a yearly basis, hence assisting with the various financial implications and expenditures that come with having a disability. By the end of the year, if a person found eligible is under 18 years of age, the DTC will also provide an extra credit/refund.
The tax credit is divided into two parts: provincial and federal. The federal part is uniform throughout the country, and provincial percentages differ from one province to the next.
If you want to qualify for the DTC, you must experience trouble with daily life activities such as walking, speaking, hearing, feeding yourself, or other impairing conditions that affect your daily life.
If you are found to be qualified for DTC, so many other federal, provincial, or territorial programmes are available to you, such as RDSP, Canada Worker’s Benefit, and the Child Disability Benefit.
How Can Canadians Be Qualified for the Disability Tax Credit Program?
When they are qualifying for the DTC, there are two basic different levels considered:
The first of which is disabled, meaning that one who is disabled cannot perform their daily life's basic activities. The second one is slow, meaning that one who has that level will need a significant amount of time to perform their basic activities of daily life. DTC is available for both of them, disabled and slowed. They can qualify for it and will receive an equal number of benefits.
Those people who consider themselves "slowed" never go for the DTC because of the assumption that the benefit is only available to the seriously disabled. However, it is a huge misconception, and therefore, people who are suffering from it would not take advantage of it. Those who are affected by slowness due to impairments can now apply for DTC as well.For instance, if we are talking about arthritis, it may cause a person to perform a task slower day by day than others, making them eligible for DTC.
Medical Conditions That Qualify For The Disability Tax Credit
The DTC was established for the purpose of helping people who are affected by prolonged or permanent disabilities. That impairment a person has seriously decreases that person's ability to carry out "activities of daily living" (ADL).
The ADL is considered in Canada as a major parameter for qualifying for the Disability Tax Credit. Bathing, dressing, walking, carrying, lifting, and other personal care activities are all included.
Note: Qualified disabilities are classified into 3 main categories: However, it is essential that eligibility for the Disability Tax Credit is not determined by the diagnosis of the impairment but by the severity of the impairment and how it impacts your ability to perform "activities of daily living."
There are some conditions that regularly qualify:
- Slow walking is recommended for those who have knee or hip problems, osteoarthritis, blood circulation problems, or disorders of the feet.
- People who are affected by digestion disorders such as Crohn's or Colitis, incontinence, and prostate inflammatory bowel disorder
- Breathing problems: COPD, emphysema, tuberculosis, chronic asthma, and sleep apnea are some of the conditions that people suffer from.
- People who are affected by this problem may have hearing aids, hearing aids required, or poor hearing.
- Mentally retarded: Alzheimer's, dementia, depression, and ADHD are all symptoms of memory loss.
To be more specific,
For the purpose of disability benefits qualification, it is not possible to make a complete list of every disability that has been recognised by the government of Canada. But there is a list of the most common disabilities claimed. If you do not get to find your condition on this list, please do not give up. It is simple. To contact our team, give us a call, drop us an email, or fill out our online form.
- Alzheimer’s Disease
- Arthritis
- Amyotrophic Lateral Sclerosis Angina
- Autism
- Behcet's Disease is a disease that affects people of all ages.
- Bipolar Disorder
- Borderline Personality Disorder.
- Bulimia Nervosa
- Cerebral palsy is a condition that affects the brain.
- Chromosome Abnormality
- Chronic Fatigue Syndrome (CFS) is a type of fatigue that lasts at least 6 months.
- Attention deficit hypertension activity (ADHD)
- Chronic Pain Syndrome (CPS)
- Colitis
- Disorders of Conduct
- Coronary Artery Disease (CAD) is a kind of cardiovascular disease that affects your heart.
- Cri-Du-Chat Syndrome
- Crohn's disease is a chronic inflammatory bowel disease that affects
- Vivo Illness
- Dementia
- Depression
- Mental retardation
- Dyslexia
- Epilepsy
- Blindness
- Parkinson’s
- Speech disability
- Spinal stenosis
Disabilities that are commonly encountered
The Canadian government says that a person with a disability is someone who has a long-term or severe condition that makes it hard for them to do normal and everyday tasks.It's worth trying because Canadian disability benefits will not pay you unless you get a refund!
Most disorders, according to the CDB, fall into a few main categories:
Mental disability:
Mental disability can be difficult to diagnose at times, but it is typically more incapacitating for those who suffer from it.Depression is one of the most common mental disabilities that Canadian disability benefits deal with. In this condition, depression can make it difficult for some to get out of bed in the morning and keep up with full-time work. The Disability Tax Credit is designed to help people in situations like these.
Canadian citizens may have it naturally, be born with a mental disability, or develop it later in life through natural causes or tragic accidents. It doesn't matter what the cause is or any symptoms you are going through, as long as the condition qualifies as a disability, we can assist you, as defined by the Canadian government!
Physical illness:
Physical impairments are visible to everyone and can cause specific issues for people who have them. Those with physical disabilities may be unable to perform the same activities as those who are not.
Canadian citizens may have it naturally, be born with a physical disability, or develop it later in life through natural causes or tragic accidents. It doesn't matter what the cause is or any symptoms you are going through, as long as the condition qualifies as a disability, we can assist you, as defined by the Canadian government!
Summary
If you think DTC benefits will impact you in any negative way, then you are wrong. It is simply an income tax reduction credit. There are no negative financial consequences for applicants who get such credits. The DTC is a reduced income tax, so any refunds paid to applicants would not be considered income. Furthermore, while DTC credit refunds are not income, generally speaking, refund credit will not threaten applicants' other income or health benefit sources that are influenced by external revenue sources and amounts.