Webinar - New digital application form for the disability tax credit (DTC): For applicants

Transcript

Disability Tax Credit (DTC) - New fully digital application form

Hello, and welcome.

My name is Adedamola. I’m with the Canada Revenue Agency, or CRA for short.

I’m very happy to be here today. I will be talking to you about the Disability Tax Credit and the new, fully digital application process created for individuals and medical practitioners.

[Two individuals looking at a laptop.]

Land acknowledgement

Given that we are meeting virtually, I would like to begin by acknowledging the traditional territories on which I am presenting from of the people of the Treaty 7 region in Southern Alberta. The City of Calgary is also home to Métis Nation of Alberta, Region III.

 I also want to acknowledge the lands on which you are gathered from coast to coast and invite you to take a moment of silence to have a thought for the territory in which you find yourself.

Overview

In today’s webinar, we are providing information on the Disability Tax Credit and how to apply.

Throughout the presentation, we will be referring to the credit as the “DTC.”

We will first give an overview of the DTC.

Next, we will review the new, fully digital application process; beginning with explaining how individuals can apply for the DTC. The purpose of the new, fully digital application is that both the applicant and the medical practitioner can now complete and submit their portions of the DTC application online.

Previously, medical practitioners could use the digital application to complete the form, print it, and give it to the applicant to complete. It could then be mailed or sent through My Account. This method can still be used to submit an application.

It is also still possible to complete the application using the paper Form T2201.

The Disability Tax Credit (DTC)

The Disability Tax Credit (DTC) is a non-refundable tax credit that helps people with impairments, or their supporting family members, reduce the amount of income tax they may have to pay.

If someone has a severe and prolonged impairment, they may apply. If approved, they may claim the credit on their income tax and benefit return. If the DTC is approved for prior years, an adjustment to their previous tax returns may be requested.

By reducing the amount of income tax they may have to pay, the DTC aims to offset some of the extra costs related to the impairment.

[One individual holding a tablet smiles at another while seated at a table.]

How to apply for the DTC

The application process for the DTC involves the person who has the impairment and a medical practitioner who can certify the effects of the impairment.

An individual may be eligible for the DTC if a medical practitioner certifies that they have a severe and prolonged impairment in one or more of the categories of impairment, significant limitations in two or more categories, or receive life-sustaining therapy to support a vital function.

The categories of impairment include walking, mental functions, dressing, feeding, eliminating (bowel or bladder functions), hearing, speaking, vision, and life-sustaining therapy.

As a result of new legislation, people with Type 1 diabetes meet the eligibility criteria under life-sustaining therapy effective January 1, 2021.

Applicants and medical practitioners have two options to complete the DTC application. They can apply with the paper form, or they can apply with the digital application form.

Please note the paper application has not changed, except to include legislative updates that expanded definitions for mental functions and life-sustaining therapy.

This webinar focuses on how to apply using the digital application form.

Advantages to using the digital application form

Here are some of the advantages of using the digital application form, for both the applicant and the medical practitioner:

• Applicants can complete Part A via My Account. Medical Practitioners can complete and submit Part B through the DTC digital application.
• There is no need to print and mail the form to the CRA.
• If the applicant does not have access to the CRA’s online My Account, they can now start the application over the phone. Part A, the applicant’s portion of the form, can be completed using the automated voice service or by calling a CRA agent.
• The digital application guides the medical practitioner through the DTC application process. Relevant questions are asked, based on the category of impairment.
• For applicants, the digital application form will be prepopulated with known CRA information on file, simplifying the application process for them. They are only required to verify the information, and can update any missing or wrong information.
• And finally, the form is securely sent directly to the CRA for assessment, avoiding the delays that can occur when sending by mail.

The CRA ensures persons with disabilities have better access to the DTC and receive the support they require throughout the application process.

Applicants without access to My Account can complete Part A of the form over the phone using the automated voice service at 1-800-463-4421 or by calling a CRA agent at 1-800-959-8281.

Contact centre agents can guide you through the DTC application process, identify which medical practitioners can certify the form, and provide guidance on claiming the credit.

If a DTC enquiry can’t be answered by the contact centre, the contact centre agent can request assistance from a DTC navigator. DTC navigators are DTC experts who can help resolve complex issues. If the Navigator is required to do research or consult other areas, they will call the taxpayer back directly.

How to claim the DTC

It is important to note that if someone is eligible for the DTC, they may claim the non-refundable tax credit when they do their taxes.

An individual can also request an adjustment to a tax return they previously filed (up to 10 years, if applicable) for years they were eligible for the DTC, but did not claim it.

For more information about how to claim the DTC, applicants or their representatives are encouraged to visit canada.ca/disability-tax-credit.

This webpage is a great resource for information on the DTC and helps guide applicants through both the process of applying and claiming the credit if they are eligible.

[A screenshot of the “Claiming the credit” page at canada.ca/disability-tax-credit]

DTC Digital Application Form, Part A – Applicants

Next, we will walk through how to apply for the DTC using the fully digital application form. The first steps, or Part A, are for the applicant. This can be the person with the disability or their legal representative.

The second steps, or Part B, are for the medical practitioner. If you are using the digital application to complete both sections, it is important to note that Part A must be completed before the medical practitioner starts Part B.

Using the digital application form

Applicants can access the digital application through My Account. Legal representatives can use Represent a Client.

To get to the beginning of the application, go to the “Benefits and credits” page in My Account and select the “Disability tax credit, DTC” section. Click “Apply for DTC.”

The “Benefits and Credits” page of My Account shows applicants when the CRA receives Part B from their medical practitioner, and reference numbers for applications that have not been completed.

Clicking “View” next to each application displays a summary of all information that was provided as part of the application.

More information for those eligible will be under the “Apply for DTC” section.

[A screenshot of the “Benefits and credits” page of My Account showing status updates for a DTC application.]

DTC digital application form: Part A – Applicant

After clicking on “Apply for DTC” in My Account, you will be directed to start Part A. Once you are ready, click “Start.”

Applicants are directed to three sections:

• In the first, provide information about the person with the disability;
• In the second, provide information about the person claiming the disability amount if applicable such as when a supporting family member is going to claim the disability amount;

And in the third, you can review and edit previous entries, and then submit Part A.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 1

Step 1 of Part A asks about the person with the disability. Choose from three options:

• Myself
• A child under 18 in my care who is not listed
• None of the above

If the applicant has children in their care on their account, and they are applying for them, a fourth option is available titled “A child in my care.” The parent who is receiving the Canada child benefit for that child would see the child’s name.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 1, Review

The information the CRA currently has on file via My Account or Represent a Client will be displayed for the individual who is indicated as the person with a disability in Step 1.

Review the information and confirm it is correct. Select “Yes,” then click “Next” to proceed to Step 2.

If the information is not correct, select “No.” A prompt will ask the user to update the information through the “Profile” section of My Account before returning to the application.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 2, Adult

There are two questions for Step 2 of an adult application. The first asks who will be claiming the DTC amount on their income tax return. The options provided are:

• Myself
• A supporting family member
• The amount will not be claimed at this time

A supporting family member can be a spouse, common-law partner, child, grandchild, parent, grandparent, sister, brother, aunt, uncle, niece, or nephew.

The second question of Step 2 asks if previous tax returns should be adjusted for all applicable years. Returns are adjusted if the CRA determines a person is eligible for the DTC amount for previous years but has not yet claimed this amount.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 2, Adult

If there is a supporting family member in Step 2, who will be claiming the amount on their return, the application asks for information about this person. Their name and relationship to the applicant are required. Their social insurance number (SIN) can be provided. However, it is optional.

The application asks whether the person with the disability and the supporting family member live together.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 2, Adult

Entitlement for the transfer of the disability amount is based on the relationship with and the financial support provided by the supporting family member.

The application requests details on how the supporting family member provides or provided financial support to the person with the disability.

Questions are asked about the basic necessities of life, including food, shelter, and clothing.

The years during which financial support has been provided in each category can be chosen from drop-down lists. The supporting family member does not need to provide financial support in all areas.

If the support continues, the current calendar year can be selected under the “To” year.

There is also an area to provide written details about the financial support provided. For example, the support can include weekly groceries, seasonal clothing, or living with the person with the disability.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 2, Child

If applying for a child in Step 2, the application will ask three questions. The first is who will be claiming the disability amount. The options are:

• Myself
• A supporting family member
• The amount will not be claimed at this time

When applying for a child, the applicant does not have to be the person who will be claiming the DTC on their return.

In this example, the applicant is the mother, and she is also the one who will be claiming the disability amount.

However, if she wanted the other parent to claim the amount, she could select “A supporting family member” and provide the necessary information, as seen earlier in the Adult example.

The second question asks whether the applicant would like their applicable previous tax returns adjusted if we determine the person with the disability is eligible for the DTC.

The last question asks if the person with the disability and the supporting family member live together.

Once the three questions have been answered, click “Next.”

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 3: Review and submit

Step 3 is to review the information from the previous steps. If something is incorrect, click “Edit” to make changes.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 3: Review and submit

If someone other than the person with the disability will be claiming the disability amount, additional information will be provided on the timing and type of financial support they’ve provided.

It will also list their name, social insurance number (SIN) if provided, and relationship to the person with the disability.

This information can be edited before submission.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Step 3: Review and submit

The last part of Step 3 is authorization and submission.

These statements have to be authorized when Part A is ready to submit:

1. The information above is correct and I am ready to submit Part A of my application.
2. I authorize the medical practitioner who will complete Part B of the application to provide CRA with relevant information from their medical records in order to determine eligibility.
3. If applicable, the CRA can adjust my previous tax returns.

Once the statements are authorized, click “Submit.”

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

Digital application form – Part A, Confirmation

After clicking “Submit,” a “Confirmation” page appears. This page provides the reference number, which medical practitioners need to complete Part B.

A link to printable instructions is available and can be provided to medical practitioners. These instructions can also be saved.

If the reference number is unknown, view it in My Account on the “Benefits and Credits” page. It’s in the DTC table next to the date Part A was completed and submitted.

This section of My Account also provides updates on when Part B is received from medical practitioners.

It is important to note that your DTC application is not complete until a medical practitioner completes Part B of the form. They may complete and submit the form digitally by visiting canada.ca/dtc-digital-application. Ensure that you provide your reference number from Part A to your medical practitioner.

If a completed application form has been submitted by mail or online through My Account, the same information should not be resubmitted using the new digital form. Please note that Part B of the digital application must be certified and submitted by the medical practitioner; applicants cannot complete Part B themselves. Part B of the digital application will be considered invalid if submitted by anyone other than the medical practitioner.

[A screenshot of the “Disability tax credit – Part A” section in the DTC digital application.]

DTC Digital Application Form, Part B – Medical practitioners

Part B of the DTC application process needs to be completed by a medical practitioner. In this section, information will be provided about the impairment of the applicant.

Resources for applicants and medical practitioners

We’re nearing the end of the presentation. Before we go, we want to leave you with some resources where you can get more information.

The CRA’s website canada.ca/disability-tax-credit provides more information about the DTC, including:

• A self-assessment tool, which helps determine if an individual or their dependant may be eligible for the DTC;
• The DTC application form; and
• A guide to help navigate the DTC process and other related tax credits.

The CRA has a dedicated toll-free phone line for medical practitioners who have questions about the DTC.

If you are an applicant or are interested in applying and have DTC questions, call 1-800-959-8281 or TTY: 1-800-665-0354.

Thank you!

And that’s all for me! This is the end of our webinar. Thank you for joining us today. We hope it was helpful!

For more information on any related topics, visit our webpage at canada.ca/taxes.

If you need a refresher, today’s presentation will be posted on the CRA’s Individuals video gallery at canada.ca/individuals-video-gallery within a few weeks of our broadcast.

We also encourage you to visit our Upcoming Events page at canada.ca/cra-outreach-events to view and register for upcoming webinars.

Thank you for listening, and enjoy your day!

Individual tax enquiries line: 1-800-959-8281

Outreach materials – Canada.ca: canada.ca/outreach-materials

Taxes – Canada.ca: canada.ca/taxes

Individuals video gallery – Canada.ca: canada.ca/individuals-video-gallery

Upcoming events – Canada.ca: canada.ca/cra-outreach-events

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[An individual smiling for the camera.]