Disability Tax Credit   

One of my colleagues did a deep dive into the Disability Tax Credit (DTC) to help a family member.  He subsequently gave us all a very informative presentation on it at one of our annual advisor retreats.

I thought it may be helpful to touch on the DTC as some clients may be eligible and not even know it.

Here are a few points to consider:

• You can apply online
• Your doctor (and other medical professionals, depending on the impairment) must verify one’s impairment to qualify for the DTC
• They can also complete their portion online or by paper, though they may charge a fee for completing their portion
• The range of qualifying impairments is broad, so more people may be eligible than realize

• Once completed and submitted, CRA reviews the application 
• They may require further information from the health care provider, and they only give a 60-day window for them to respond
• It can take more than 12 weeks on average to get a decision from CRA
• If the decision is a decline, don’t be disheartened.  You can always dispute the decision in the hope that you get a positive review
• If granted the DTC, you can carry back the deduction for as long as you have had your impairment to a maximum of 10 years
• This can be a significant tax refund.  In many cases, up to $12,000!
• Going forward, if you are granted the DTC, there is no further qualification needed
• Part or all of the credit is transferrable to a supporting family member helping manage your impairment

This is a brief overview of the DTC, there is more information on the website noted below:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html

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