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.
• 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

Tax Planning

Tax planning can be also complex and hard to understand, because everyone's situation is unique. Below, we look at different financial situations and how we'd suggest each person proceed to get the most favorable result.

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