Claiming for a DTC is complex, time consuming and open to interpretation as to eligibility. The DTC is often overlooked because of a belief that it is restricted to individuals confined to a bed, wheelchair or perhaps, blind.
BACKGROUND OF THE DISABILITY TAX CREDIT
The DTC has existed since 1986. The Income Tax Act allows Canadians to get a credit refund if they qualify. The Federal Government recognizes the credit for people who are markedly restricted and have made out-of-pocket costs for many years. Many people with disabilities (just as often a family member or caregiver) are missing important tax credits and may have significant unclaimed tax refunds from previous years.
WHAT AREAS DOES THE DISABILITY TAX CREDIT COVER?
The DTC covers:
- impairment (walking, dressing, speaking, hearing, feeding)
- elimination (bowel or bladder function)
- mental (depression, stress, mood disorders, schizophrenia or bipolar disorder).
- learning disabilities
- individuals with prosthetics & orthotics
- other associated disabilities (for example, if you have arthritis in your hands or cannot walk a certain distance, you can apply for a disability tax credit).
The DTC can be obtained as a credit on behalf of deceased persons for their estate. Therefore, a spouse may collect the DTC retroactive from the date of their deceased spouse.
Children may qualify for a DTC in areas of walking, hearing, vision, dressing, feeding, ADHD, autism, ADD. Parents can claim the credit and/or the caregiver.
IS THE DTC TRANSFERABLE WITHIN THE FAMILY?
This credit can be transferred to a supporting spouse, parent, grandchild, child, grandchild, brother, sister, aunt, uncle, nephew, or niece of the individual applying for the credit.
The tax credit amount is fully indexed to inflation.
The tax credit is tax-free and will not affect your taxes.
WHAT DOES CANADA REVENUE SERVICES CONSIDER AS PHYSICAL OR MENTAL IMPAIRMENT?
Impairment means that a person has difficulty functioning even when using the appropriate therapy, medication, devices all or some of the time.
A person who still cannot function normally or can, but takes more time to dress themselves due to arthritis in their hands, knees, hips or back.
MOST COMMON QUESTIONS
What if I have no income and don't pay taxes?
Individuals with no income and who do not pay taxes may take advantage of a DTC by transferring their credit to another family member or caregiver who has an income. Particularly a spouse, family member or child who is over the age of 18.
What must I do to receive a DTC?
If you feel that you may or may not qualify or have questions about the DTC, you may contact us directly.
Lisa Yaciuk Seto
Direct Phone: (604)816-8000