2010 FDR - Appendix E: Tax measures

Appendix E
Federal disability spending for the 2009–2010 fiscal year: Tax measures
Program/
Initiative
Description Amount
($ Millions) 2009–2010 Footnote 32
Direct spending Footnote 31
Disability tax credit (including the supplement for children)

Canada Revenue Agency
The Disability Tax Credit (DTC) provides tax relief to individuals with severe and prolonged mental or physical impairments. The DTC recognizes the impact of non-itemizable disability-related costs on an individual’s ability to pay tax. Families caring for minor children eligible for the DTC may receive additional tax relief through the DTC supplementfor children. Part or all of the DTC can be transferred to a spouse, common-law partner or other supporting person if the recipient does not use all of the tax credit because he or she has little or no income. Claimants must have a qualified medical practitioner complete the Disability Tax Credit Certificate (Form t2201) and return it to the Canada Revenue Agency for approval.

For more information, please visit:
http://www.cra-arc.gc.ca/E/pbg/tf/t2201/

In addition, a number of tax measures contain enhancements for DTC-eligible individuals in recognition of their special needs and circumstances. These include the Working Income Tax Benefit (WITB), the Children’s Fitness Tax Credit, the Child Care Expenses Deduction, the Home Buyers’ Plan and the Home Buyers’ Tax Credit, the Education Amount, and the Registered Education Savings Plan (RESP).

For information on how individuals with disabilities and those who care for them may benefit from these measures, please visit:
www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html
415.0
Disability Supports Deduction

Canada Revenue Agency
The Disability Supports Deduction provides tax relief for the cost of disability supports incurred for the purposes of employment or education (e.g. sign language interpretation services and talking textbooks). This deduction eliminates the income tax payable on income (including government assistance) used to pay for these expenses and exempts this income from the calculation of income-tested benefits.

For more information, please visit:
www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/215/menu-eng.html
2.5
Infirm Dependant Credit

Canada Revenue Agency
The Infirm Dependant Credit offers assistance to eligible individuals providing support to an infirm dependent relative. The credit may be claimed by taxpayers supporting a child or grandchild age 18 or over, parent, grandparent, brother, sister, aunt, uncle, niece or nephew who is dependent due to an intellectual or physical infirmity.

For more information, please visit:
www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/306/menu-eng.html
5.0
Indirect spending Footnote 33
Caregiver Credit

Canada Revenue Agency
The Caregiver Credit provides tax relief to individuals providing in-home care for a parent or grandparent age 65 or over, or for an infirm dependent relative, including a child or grandchild age 18 or over, brother, sister, niece, nephew, aunt or uncle who resides with the taxpayer.

For more information, please visit:
www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/315/menu-eng.html
85.0
GST/HST Relief

Canada Revenue Agency 
Some services used by people with disabilities are exempt from the Goods and Services Tax / Harmonized Sales Tax, including basic health care services, such as the services of physicians, dentists and registered nurses, as well as occupational therapy and physiotherapy services. In addition, certain medical devices are tax-free, such as wheelchairs, walkers and other mobility aids specially designed for use by people with disabilities.

For more information, please visit:
www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/menu-eng.html
760.0
Medical Expense Tax Credit

Canada Revenue Agency
The Medical Expense Tax Credit provides tax relief for qualifying above-average medical or disability-related expenses incurred by taxpayers on behalf of themselves, a spouse or common-law partner, or a dependent relative.

For more information, please visit:
www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html#P633_58944
955.0
Refundable Medical Expense Supplement

Canada Revenue Agency
The Refundable Medical Expense Supplement provides assistance for above-average disability and medical expenses to low-income working Canadians.

For more information, please visit:
www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/452-eng.html
135.0
Appendix E Text Description

All of the initiatives listed under Tax Measures are funded by Canada Revenue Agency, also called CRA.

The following programs and policies are considered “direct spending” related to tax measures and were funded in fiscal year 2009 to 2010. The descriptions begin with the amount spent.

415 million dollars on the Disability tax credit, including the supplement for children. The Disability Tax Credit, also called the DTC, provides tax relief to individuals with severe and prolonged mental or physical impairments. The DTC recognizes the impact of non itemizable disability related costs on an individual’s ability to pay tax. Families caring for minor children eligible for the DTC may receive additional tax relief through the DTC supplement for children. Part or all of the DTC can be transferred to a spouse, common law partner or other supporting person if the recipient does not use all of the tax credit because he or she has little or no income. Claimants must have a qualified medical practitioner complete the Disability Tax Credit Certificate, Form T2201, and return it to the Canada Revenue Agency for approval. More information on the DTC is available on the internet at www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html

In addition, a number of tax measures contain enhancements for DTC-eligible individuals in recognition of their special needs and circumstances. These include the Working Income Tax Benefit, also called WITB, the Children’s Fitness Tax Credit, the Child Care Expenses Deduction, the Home Buyers’ Plan and the Home Buyers’ Tax Credit, the Education Amount, and the Registered Education Savings Plan, also called the RESP. More information on how individuals with disabilities and those who care for them may benefit from these measures is available on the internet at www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html

2.5 million dollars on the Disability Supports Deduction. The Disability Supports Deduction provides tax relief for the cost of disability supports incurred for the purposes of employment or education, for example, sign language interpretation services and talking textbooks. This deduction eliminates the income tax payable on income, including government assistance, used to pay for these expenses and exempts this income from the calculation of income tested benefits. More information on the Disability Supports Deduction is available on the internet at www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/215/menu-eng.html

5 million dollars on the Infirm Dependant Credit. The Infirm Dependant Credit offers assistance to eligible individuals providing support to an infirm dependent relative. The credit may be claimed by taxpayers supporting a child or grandchild age 18 or over, parent, grandparent, brother, sister, aunt, uncle, niece or nephew who is dependent due to an intellectual or physical infirmity. More information on the Infirm Dependant Credit is available on the internet at www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/306/menu-eng.html

This concludes tax measures related direct spending.

The following programs and policies are considered “indirect spending” related to tax measures.

85 million dollars on the Caregiver Credit. The Caregiver Credit provides tax relief to individuals providing in-home care for a parent or grandparent age 65 or over, or for an infirm dependent relative, including a child or grandchild age 18 or over, brother, sister, niece, nephew, aunt or uncle who resides with the taxpayer. More information on the Caregiver Credit is available on the internet at www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/315/menu-eng.html

760 million dollars on GST and HST Relief. Some services used by people with disabilities are exempt from the Goods and Services Tax and or Harmonized Sales Tax, including basic health care services, such as the services of physicians, dentists and registered nurses, as well as occupational therapy and physiotherapy services. In addition, certain medical devices are tax-free, such as wheelchairs, walkers and other mobility aids specially designed for use by people with disabilities. More information on GST and HST Relief is available on the internet at www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/menu-eng.html

955 million dollars on the Medical Expense Tax Credit. The Medical Expense Tax Credit provides tax relief for qualifying above average medical or disability related expenses incurred by taxpayers on behalf of themselves, a spouse or common-law partner, or a dependent relative. More information on the Medical Expense Tax Credit is available on the internet at www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html#P633_58944

135 million dollars on the Refundable Medical Expense Supplement. The Refundable Medical Expense Supplement provides assistance for above average disability and medical expenses to low income working Canadians. More information on the Refundable Medical Expense Supplement is available on the internet at www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/452-eng.html

This concludes Appendix E on tax measures.

This concludes the five appendices listing federal disability related spending in fiscal year 2009 to 2010. For more information on any of these programs, please visit the web addresses listed with the program descriptions or call 1 800 O Canada.

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