Claiming the disability tax credit
Pre-test question
Sorry, that's incorrect
Rebecca would not be able to claim this amount unless she was the one providing care for someone else.
That's correct
Rebecca would not be able to claim this amount unless she was the one providing care for someone else.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to Key points of the tax software and the Takeaway points
Background information
Situation
Rebecca works full-time. On December 1, 2025, she had her bathroom modified to make it accessible at a cost of $1,000. Rebecca has previously been approved for the disability tax credit (DTC) and wants to claim the DTC as well as the cost of the bathroom renovation on her tax return. She has a prescription from her doctor for the bathroom modification.
| Categories | Datas |
|---|---|
| Name | Rebecca Healy |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth | March 8, 1982 |
| Marital status | Divorced |
Required slips
T4 – Statement of Remuneration Paid (987654 Canada Ltd.)
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: 987654 Canada Ltd.
Employee’s name and address:
Last name: Healy
First name: Rebecca
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 32,413.72
Box 16: Employee’s CPP contributions – see over: 1,719.12
Box 18: Employee’s EI premiums: 537.68
Box 22: Income tax deducted: 1,950.00
Box 24: EI insurable earnings: 32,413.72
Box 26: CPP/QPP pensionable earnings: 32,413.72
Box 45: Employer-offered dental benefits: 2
RC210 – Advanced Canada workers benefit (ACWB) statement
Text version for the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Healy, Rebecca
123 Main Street
City, Province X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
Box 11: Total Advanced Canada workers benefit disability supplement: 392.00
Review your results
Solution to Claiming the disability tax credit
Key points of the tax software
Important note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Rebecca's interview
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 income (earned in any province except Quebec) in the T4 and T4E section
- Enter the information from the tax slip
- Click Medical, disability, caregiver in the left-side menu
- Click the + sign next to Infirmity and Disability amounts claim for yourself* (line 31600) in the Disability deductions, caregiver section
- Enter the applicable information into the Name or description of infirmity field
- Select Claim disability amount (default) from the Are you eligible for the disability amount on federal line 31600? drop-down menu
- Select No from the Does this infirmity provide entitlement to the Canada caregiver amount? drop-down menu
- Click Medical, disability, caregiver in the left-side menu
- Click the + sign next to Home accessibility expenses (line 31285) in the Disability deductions, caregiver section
- Select Let MaxBack decide (default) from the Select how you want to claim the Federal Home Accessibility Expenses credit drop-down menu
- Enter the applicable information into the Supplier or contractor name (mandatory) field
- Enter the applicable information and amount into the Date (dd-mm-yyyy), description and amount of eligible home renovation expense. fields
- Select Yes from the Is this expense an allowable Federal medical expense? drop-down menu
Advanced Canada workers benefits (RC210)
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the information from the tax slip
Takeaway points
- Individuals must have an approved Form T2201, Disability Tax Credit Certificate with the CRA to claim the disability tax credit
- The tax software automatically calculates the disability amount with the information entered
- Name or description of infirmity is a mandatory field in the tax software, Unknown can be entered if the information is not given
- The disability amount is claimed on line 31600 of the tax return
- Rebecca can claim the expense because she:
- owns her home
- is eligible for the disability tax credit
- renovated her bathroom to make it accessible
- The tax software automatically calculates the home accessibility amount with the information entered
- The home accessibility amount is claimed on line 31285 of the tax return
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