Disability Tax Credit

disability imageThe Canada Revenue Agency may seem ruthless at times, but tax credits such as the Disability Tax Credit show that they offer valuable tax breaks for those suffering from a disability. So what is the Disability Tax Credit? Well according to the CRA it “is a non-refundable tax credit that a person with a severe and prolonged impairment in physical or mental functions can claim to reduce the amount of income tax he or she has to pay in a year” (Source).

One of the key things to keep in mind that this tax credit is only for people with “severe and prolonged impairment” in regards to either physical or mental functions. As a tax professional I can not tell you what is medically considered a severe and prolonged impairment. In order to determine if you are eligible you should speak to your physician. As a tax professional I can tell you that this is a credit of $7546 if you are over 18 and if you are under 18 it can be worth an additional supplement of $4,402.

If you feel you or someone you know is eligible for the Disability Tax Credit then it is likely in your best interest to apply for the credit. In order to do this the first step is to complete form T2201. This is the form that you and your physician must complete together and send to the CRA for them to review your disability. Acceptance of the disability tax credit can normally take some time, but on the positive side if the CRA accepts they will automatically apply it up to a maximum of 10 previous years if you suffered from the eligible disability.

If you are looking for more information on the Disability Tax Credit please contact Greg at First Choice Tax Services (250) 753-7888.