The Disability Tax Credit Claim in Canada

As Canadians advance in age, we are pleased to offer a 3 part series on the Disability Tax Credit (DTC) in Canada.

To claim the Disability Tax Credit (DTC) in Canada, you must meet the eligibility criteria and complete the necessary steps. Here's a general overview of the process:

1. Determine eligibility: The DTC is intended for individuals with severe and prolonged impairments in physical or mental functions. You must have a certified medical practitioner complete the Disability Tax Credit Certificate (Form T2201), which assesses your eligibility.
2. Complete Form T2201: Fill out Form T2201 with accurate and detailed information about your impairment and how it affects your daily life activities. Both you and the medical practitioner must sign the form.
3. Submit Form T2201: Send the completed Form T2201 to the Canada Revenue Agency (CRA) for assessment. You can mail it or submit it electronically through the CRA's online services.
4. CRA review: The CRA reviews your application and determines if you meet the eligibility criteria for the DTC. They may contact you or your medical practitioner for further information or clarification.
5. Notification: If your application is approved, the CRA will send you a Notice of Determination indicating that you are eligible for the DTC. The notice will state the period for which you can claim the credit.
6. Claim the credit: When filing your income tax return, complete Schedule 1 and include the amount of the Disability Tax Credit on line 31600. The credit may be used to reduce your taxes payable or may result in a refund, depending on your circumstances.

It's important to note that claiming the DTC can have other benefits as well. For example, you may be eligible for additional tax credits or benefits, such as the Registered Disability Savings Plan (RDSP) or the Canada Child Disability Benefit (CCDB).

To ensure you have accurate and up-to-date information and understand how the DTC specifically applies to your situation, we urge you to contact our office. I also recommend consulting the official Canada Revenue Agency website or contacting them directly.