Have you ever wondered if the Canadian Disability Tax Credit is something you could use on your personal tax return, or that of a family member? It can have a large impact on reducing annual personal taxes. Here is a list that will help you maneuver the application process along with some additional considerations.
1) The form that needs to be completed is called a T2201. If you go to Google and type in “T2201”, it is the first item on the first page on Google. It consists of 12 pages. Do not be overwhelmed by the package you are about to print. It is divided into sections
- Page one is the overview of what it is and what you can do.
- Pages two and three are the self-assessment questionnaire. By answering these 5 short questions it will help you determine if you might be eligible for the DTC.
- Page four is to be completed by the person with the disability or legal representative.
- Pages five through twelve are completed by a qualified practitioner.
2) To qualify for the DTC an individual must be “markedly restricted” in one of the following daily life functions;
- Mental functions necessary for everyday life
- Elimination (bowel and bladder functions)
Other impairments are
- Life-sustaining therapy to support a vital function
- Cumulative effects of significant restrictions (see form for definition or contact me for a detailed explanation) This became effective in 2005
3) The impairment in physical or mental functions must be prolonged. It must have lasted or expected to last for a continuous period of at least 12 months.
4) A DTC must be signed by either a medical doctor of one of the following professionals with respect to the categories above:
- Occupational Therapist
- Speech-language pathologist
5) The disability tax credit is one of the few credits that can be claimed on behalf of a disabled spouse or relative.
6) You may be charged a fee for the qualified practitioner to complete the form but save it along with your regular medical expense receipts and claim them on your personal tax return.
7) If you or a relative are eligible to claim the DTC you can request the Canada Revenue Agency (CRA) to reassess your previously filed returns, back 10 years. This is done quite easily by submitting a T1 adjustment for each year to the CRA.
If you cannot complete the return yourself, contact me or another professional to assist you. Do not pay a percentage of the money you’re rightly entitled to, to a company that’s in the business of processing applications. And certainly don’t pay an application fee. The medical profession is constantly completing these forms on behalf of their patients. Your health care practitioner can tell you whether you meet the criteria or are potentially eligible.
Canadians with disabilities can take advantage of credits and programs available to them; they don’t deserve to be taken advantage of.
As always, I love getting feedback. Here on my blog, you’ll get commentluv. That’s a plug in that allows you to leave a link back to your own site when you post a comment.
Until next time,