The Disability Tax Credit (“DTC”) is a non-refundable tax credit that helps Canadians with disabilities pay for their out of pocket expenses. This credit is intended to provide greater tax equity by allowing relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face.
To be eligible for the DTC, you must submit a Disability Tax Credit Certificate (form T2201). It must be filled out by a medical practitioner, who can attest that you have a severe and prolonged impairment, with descriptions of its effects and symptoms. You are also required to submit supporting documentation backing up the doctor’s claims.
If you believe you are eligible for a disability tax credit, but did not claim it on your tax return, it isn’t too late! We can help you request adjustments for up to 10 years prior.
Requirements for the Disability Tax Credit
A taxpayer may be eligible for the disability tax credit if they have one of the following impairments:
- Is markedly restricted from completing at least one of the following, speaking, hearing, walking, going to the bathroom, feeding, dressing, and mental functions;
- Is significantly restricted from completing two of more of the list mentioned in the above bullet points; or
- The condition requires life sustaining therapy.
Additional Criteria for the Disability Tax Credit
The impairment must meet all of the following conditions:
- It must be prolonged, meaning it has lasted or is expected to last for a continuous period longer than at least 12 months; and
- It must be present at least “substantially all the time” (at least 90% of the time).
If you believe you are eligible for the Disability Tax Credit, and you have not applied, or you have been rejected, Rosen Kirshen Tax Law can help! We have assisted many taxpayers prove their eligibility for the Disability Tax Credit. Contact us today to learn more.
This posting provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All taxation situations are specific to their facts and will differ from the situations in the articles and postings. If you have specific legal questions you should consult with a lawyer.