Legal Information - Consumer & Debt

Disability Tax Credit - What it is and how to apply

 

The Disability Tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of tax they may have to pay.  Being eligible for the DTC can also open the door to other government programs.  For more information, go to www.cra.gc.ca/dtc or call 1-800-959-8281.

 

You can apply for the tax credit by taking the form to your family doctor to be filled out (Form T2201, Disability Tax Credit Certificate).

 

Receiving ODSP or CPP-D does not make you automatically eligible for the tax credit. To get the tax credit you must have a doctor verify that you have a physical or mental impairment that will last for at least 12 months. If it takes you a lot longer to do everyday tasks such as walking or dressing, you may be eligible for the tax credit.

  1.  Get the Disability Tax Credit form filled out by your doctor. (The doctor may charge a fee, however you may be able to claim these fees as medical expenses on line 330 of your tax return.)

  2. Once the form has been returned to you from your doctor, write a letter asking for retroactivity for the tax credit and include it with the T1 Adjustment request form.

  3. Submit the Disability Tax Credit form, the letter asking for retroactivity and the T1 Adjustment request form to the Canada Revenue Agency.

  4. If you are denied the Disability Tax Credit, call your MP. If you have additional information from a qualified practitioner that you did not have in your original application, send that information to the Disability Tax Credit Unit of the appropriate tax centre (as shown on your last notice of assessment) and they will review the file again.

  5. For more information on how to appeal a decision (you have 90 days to file an objection), visit the CRA website at http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/dtc/ftr-eng.html

  6. Receiving the Disability Tax Credit should not impact your ODSP. If it does, call us (or your local legal clinic.)

Watch this video from the Canada Revenue Agency on how to apply.

 

 

Opening a Registered Disability Savings Plan (RDSP)

 

Once you have received your certificate declaring that you qualify for the Disability Tax Credit, you may apply for the Registered Disability Savings Plan (RDSP) (see also: Canada Revenue web page on RDSPs and RDSP Guide).

 

An RDSP helps Canadians with disabilities and their families save for the future. If you are a Canadian resident under age 60 and qualify for the Disability Tax Credit, you are eligible for an RDSP.

 

Earnings accumulate tax-free, until you take money out of your RDSP. Parents or guardians may open an RDSP for a minor. With written permission from the holder, anyone can contribute to the RDSP.

 

Canada Disability Savings Grant

 

Through the Canada Disability Savings Grant, the Government deposits money into your RDSP to help you save. The Government provides matching grants of up to 300%, depending on the amount contributed and the Beneficiary’s Family Income.  (See also the Canada Revenue web page.)

 

The maximum is $3,500 each year, with a limit of $70,000 over your lifetime.

 

Canada Disability Savings Bond

 

Through the Canada Disability Savings Bond, the Government deposits money into the RDSPs of low-income and modest-income Canadians.

 

If you qualify for the bond, you could receive up to $1,000 a year from the Government, based on your income level, with a limit of $20,000 over your lifetime.

 

You do not need to make your own contributions to the RDSP in order to receive the bond.

 

For more information contact the federal government Toll-Free at: 1-800-O-Canada (or 1-800-622-6232). Or contact Northern Lights Canada about the next upcoming information session 1-800-361-4642 or TTY 905-576-3129.

 

For a list of financial organizations offer the Registered Disability Savings Plan (RDSP), grant and bond, visit: http://www.esdc.gc.ca/eng/disability/savings/rdsp.shtml.

  

 

Consumer & Debt: 

The Law 

  The Law

 

 

FAQs 

   FAQ's

 

 

Links 

   Links

 

 

Read the latest in Consumer News.