Canada Revenue Agency (CRA) disability tax credit

Reference

Income Tax Act

Purpose

The federal government recognizes that Canadians with severe disabilities face a higher cost of living. The disability tax credit (DTC) is a non-refundable tax credit that helps people with disabilities or their supporting persons reduce the amount of income tax they may have to pay. Once an individual is eligible for the DTC, they may claim the disability amount on their income tax and benefit return. This amount includes a supplement for persons who are under 18 years of age at the end of the year.

Eligibility

To be eligible for the DTC, an individual must have a severe and prolonged impairment in physical or mental functions, which is present all or substantially all of the time (at least 90% of the time), and that has last or is expected to last for a continuous period of at least 12 months.

Eligibility is based on the effects of the individual’s impairment, which must fall into one of the following categories:

  • Vision
  • Basic activities of daily living
    • Speaking
    • Hearing
    • Walking
    • Eliminating (bowel or bladder functions)
    • Feeding
    • Dressing
    • Mental functions necessary for everyday life
  • Life-sustaining therapy
  • The cumulative effect of significant restrictions in two or more of the basic activities of daily living, or in vision and one or more of the basic activities of daily living.

Eligibility is not based on the medical condition except where the person is blind.

Activities such as working, recreation, housekeeping, or social functions are not included in the definition of basic activities of daily living for the purposes of the disability tax credit.

The fact that a person has a job does not disqualify that person from the disability tax credit.

Administration 

To apply for the DTC, you must submit a completed and certified Form T2201, Disability Tax Credit Certificate to the Canada Revenue Agency (CRA). The T2201 can be found on the CRA Web site. A medical practitioner must complete and certify Part B of the form. The following chart shows the type of impairment each medical practitioner can certify:

Medical practitioner can certify:

 

Medical doctor

all impairments

Optometrist

vision

Audiologist

hearing

Physiotherapist

walking, feeding, dressing, and the cumulative effect for these activities

Physiotherapist

walking

Psychologist

performing the mental functions necessary for everyday life

Speech-language pathologist

speaking

The medical practitioner will indicate whether or not, one has a severe and prolonged impairment, the duration of the impairment and its effects.

You are responsible for any fees that the medical practitioner charges to complete the form. However, you may be able to claim these fees as medical expenses on line 330 or line 331 of your income tax and benefit return.

Contact

For more information about the DTC, go to www.cra.gc.ca/dtc or call 1-800-959-8281.

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