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Claiming the Disability Tax Credit in Canada

By IntFormalities
Published on October 28, 2022
Estimated reading time: 5 minutes

Life for the disabled can be challenging, especially since they have to cater for additional items related to their impairment. With the help of the disability tax credit, people suffering from bodily impairments can enjoy a less burdening life. If you’re trying to apply for DTC, here’s what you should know.

Claiming the Disability Tax Credit in Canada

What Is Disability Tax Credit, And What Does It Grant Access To

The disability tax credit Canada is a program that helps people living with disabilities to live a life without the entire burden of paying taxes. It aims to reduce the taxes paid by people living with such conditions or their family members. Offsetting the cost of the costs related to living with a physical or mental impairment is what this program does.

Suppose you have an impairment or are a family member of an individual with any of the stated conditions. In that case, you can contact the Canadian Revenue Agency for help with claiming the DCT. You can get the agency online via their contact website, call them or pay them a visit to their offices.

Eligibility Criteria

The eligibility criteria for this tax credit are strict, meaning you have to pass a particular threshold before you’re allowed to sign up for it. The revenue agency has a list of individuals it categorizes as eligible depending on their suffering. Persons seeking to sign up for the CRA disability tax credit must check the following boxes.

  • You’ve had the impairment for an extended period, which is expected to last 12 months or more.
  • It takes you longer than three times the time to do anything (Walking, talking, feeding, dressing).
  • The impairment is present most times and no less than 90% of the time.
  • You have two or more impairments that cumulatively limit how you function.
  • You’re undergoing life-sustaining therapy (Diabetes).

Who Can Apply?

Anyone who passes the eligibility criteria can apply for the disability tax credit. A medical practitioner must ascertain that you suffer from one of the listed conditions before you can proceed to apply.

However, this service is a reserve of Canadian citizens and permanent residents. Visitors and temporary residents do not have access to this service.

Why And When You Should Apply

Applying for the disability tax credit is vital to cushion affected persons from the financial burden of living with a disability. If you are an individual with these conditions relative, you can also benefit from the DTC. While registration is open all year round, applicants are only free to send their request after a certified medical practitioner ascertains they suffer from one of the stated conditions.

Where To Apply for Disability Tax Credit

The Canadian Revenue Agency provides two ways for DTC application. Qualifying persons can take advantage of the online application form for this tax exemption program. If the applicant is not conversant with technology, they can also use the paper application platform to complete

Requirements And Recommendations Needed

Before beginning the application, you must ensure you have everything necessary to make the process smooth. These include:

How To Apply: Step by Step

Following a particular format while applying for a CRA disability tax credit is critical to avoid delays or denials. Here’s what you should do regardless of the platform you choose.

  • Create an account on the Canadian Revenue Agency website.
  • Liaise with a medical practitioner to fill out part B of the DTC certification form (The medical practitioner must be certified and work within the medical field you want certification for).
  • Pay any medical practitioners fees.
  • Fill out the remaining bit of the application form.
  • Attach any necessary documents.
  • Submit your application online or mail it to the Jonquiere, Sudbury, or Winnipeg tax centers.

What Happens After You Apply?

After you apply, you can check the progress of your application on your CRA account or keep tabs on the same via phone. You may be required to provide additional information to the agency if the application isn’t satisfactory.

What To Do If Your Application Is Approved or Denied

If your application is approved, it paves the way for you to claim your disability tax credit in Canada as soon as is allowed. You will receive a notification of approval in your CRA account. It’s possible to obtain a negative review, and in this case, you will also receive a report by mail or in your CRA account.

If your application isn’t approved, you can call the agency to discuss the verdict, request a review of the application, or send a new application. Filing an objection is within the parameters of actions you can take after your application is rejected.

How To Claim Your DTC On Your Income Tax Return

There are three ways you can claim disability income tax returns in Canada. Persons that can claim DTC without assistance can use line 31600 (disability amount for self) to apply for themselves. Parents of children with disabilities can claim on behalf of their children using line 31800 (disability amount transferred from dependant). At the same time, spouses can also do the same for their partners via line 32600 (amount transferred from your spouse or common-law partner).

Validity And Processing Time

The validity of this exemption varies from one person to the next. Some have an expiry date, while others don’t. The time it takes to process your request depends on your application details. It may take longer to receive a response if anything is missing from the form. However, it takes eight weeks to complete an application and revert to everyday circumstances.

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