Claiming the amount for a severe and prolonged impairment and transferring the disability tax credit
Test your knowledge
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A Form T2201, Disability Tax Credit Certificate approved by the CRA is required to claim the disability tax credit.
Sorry, that's incorrect
A Form T2201, Disability Tax Credit Certificate approved by the CRA is required to claim the disability tax credit.
Instructions
- Open the UFile CVITP software
- Review the background information and slips required (tax slips, receipts, etc.). Enter all the necessary information into the required section of the tax software
- Once completed, compare your results with the solution provided
- You don't have the same results? Consult the Reminder of key points of the tax software as needed
- Check out the Takeaway points at the end
| Category | Data |
|---|---|
| Family head | Rebecca Hétu |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 rue Principale City QC X0X 0X0 |
| Telephone number | 450-444-4444 |
| Date of birth (DOB) | March 8, 1965 |
| Marital status | Married: Alexis Morin since November 9, 1989 SIN: 000 000 000 DOB: May 19, 1966 |
| Dependant | David Hétu (son) SIN: 000 000 000 DOB: March 8, 1992 |
Details
- Both spouses lived in low-income housing (HLM) and signed the lease
- They will not be receiving an RL-31 slip
- Rebecca will still claim the solidarity tax credit since she is entitled to the basic amount and spouse's portion of the QST component
- David lives with his parents and is claiming the solidarity tax credit
- Rebecca, Alexis and David all received social assistance benefits during the year and this was their only source of income
- All three of them are covered by the Quebec prescription drug insurance plan
- David has difficulty walking so, Form T2201, Disability Tax Credit Certificate, and Form TP-1752.0.14-V, Certificate Respecting an Impairment, have been submitted and approved by the CRA and Revenu Québec respectively
Slips required
T5007 – Statement of Benefits for Rebecca
Text version for the above image
T5007 – Statement of Benefits
Protected B
Box 11: Social assistance payments or provincial or territorial supplements: 7,596.00
Box 12: Social insurance number: 000 000 000
Recipient's name and address:
Last name: Hétu
First name: Rebecca
123 Principale
City QC X0X 0X0
Payer's name and address: Ministère du Travail, de l'Emploi et de la Solidarité sociale
RL-5 – Prestations et indemnités (Benefits and indemnities) for Rebecca
Text version for the above image
Relevé 5 Prestations et indemnités
Code du relevé: R
Box A– Prestations d'assistance sociale: 7,596.00
Numéro d'assurance sociale du bénéficiaire: 000 000 000
Nom de famille, prénom et adresse du bénéficiaire des prestations ou des indemnités:
Hétu, Rebecca
123 Principale
City QC X0X 0X0
Nom et l'adresse de l'organisme:
Ministère du Travail, de l'Emploi et de la Solidarité sociale
T5007 – Statement of Benefits for Alexis
Text version for the above image
T5007 – Statement of Benefits
Protected B
Box 11: Social assistance payments or provincial or territorial supplements: 7,596.00
Box 12: Social insurance number: 000 000 000
Recipient's name and address:
Last name: Morin
First name: Alexis
123 Principale
City QC X0X 0X0
Payer's name and address:
Ministère du Travail, de l'Emploi et de la Solidarité sociale
RL-5 – Prestations et indemnités (Benefits and indemnities) for Alexis
Text version for the above image
Relevé 5 Prestations et indemnités
Code du relevé: R
Box A– Prestations d'assistance sociale: 7,596.00
Numéro d'assurance sociale du bénéficiaire: 000 000 000
Nom de famille, prénom et adresse du bénéficiaire des prestations ou des indemnités:
Morin, Alexis
123 Principale
City QC X0X 0X0
Nom et adresse de l'organisme:
Ministère du Travail, de l'Emploi et de la Solidarité sociale
T5007 – Statement of Benefits for David
Text version for the above image
T5007 – Statement of Benefits
Protected B
Box 11: Social assistance payments or provincial or territorial supplements: 7,596.00
Box 12: Social insurance number: 000 000 000
Recipient's name and address:
Last name: Hétu
First name: David
123 Principale
City QC X0X 0X0
Payer's name and address:
Ministère du Travail, de l'Emploi et de la Solidarité sociale
RL-5 – Prestations et indemnités (Benefits and indemnities) for David
Text version for the above image
Relevé 5 Prestations et indemnités
Code du relevé: R
Box A– Prestations d'assistance sociale: 7,596.00
Numéro d'assurance sociale du bénéficiaire: 000 000 000
Nom de famille, prénom et adresse du bénéficiaire des prestations ou des indemnités:
Hétu, David
123 Principale
City QC X0X 0X0
Nom et adresse de l'organisme:
Ministère du Travail, de l'Emploi et de la Solidarité sociale
Reminder of key points of the tax software
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 Solidarity tax credit in the left-side menu
- Select No for the question Throughout the year 20XX, did you live in a dwelling, either alone or only with one or more people under 18?
- Select Yes for the question Is the address of your principal residence on December 31, 20XX the same as the one in your tax return?
- Select No for the question Is your principal residence located in a northern village?
- In the Owner, tenant or subtenant section, select Neither tenant nor owner for the question Were you or your spouse tenants (received a RL-31) or owners on December 31, 20XX?
- In the B. Information about your spouse section, select Yes for the question Did you have a spouse on December 31, 20XX?
- Select Yes for the question Did you live with your spouse on December 31, 20XX?
- Select No for the question Was his or her principal residence located in a northern village?
- Click Quebec tax credits in the left-side menu
- In the Quebec line 462 section, click the + sign next to Schedule H – Dwelling information for the tax credit for caregiver
- Select The taxpayer for the statement Select the person who is the owner, lessee or sub lessee of the dwelling (Part A of Schedule H)
- Leave the fields blank for the other two statements
Additional steps to consider
Ensure you have:
- answered the questions related to the Quebec prescription drug insurance plan
- entered the amounts from social assistance payments (T5007 and RL-5 slips)
-
Alexis's interview
Social assistance – T5007/RL-5
- Click Interview setup in the left-side menu
- In the Employment and other benefits section, tick the box next to Social assistance, worker's compensation (T5007/RL-5)
- Click Social assistance, worker’s compensation in the left-side menu
- In the Workers' compensation benefits section, click the + sign next to RL-5/T5007 – Workers' compensation benefits, social assistance, etc.
- Enter the information into the corresponding fields
- Select Yes for the question Did you live with your spouse or common-law partner when you received the social assistance benefits?
- Select Spouse of family head for Select the person whose name appears on the slip
Additional steps to consider
Ensure you have:
- answered the questions related to the Quebec prescription drug insurance plan
-
David's interview
- Click Solidarity tax credit in the left-side menu
- Select No for the question Throughout the year 20XX, did you live in a dwelling, either alone or only with one or more people under 18?
- Select Yes for the question Is the address of your principal residence on December 31, 20XX the same as the one in your tax return?
- Select No for the question Is your principal residence located in a northern village?
- In the Owner, tenant or subtenant section, select Neither tenant nor owner for the question Were you or your spouse tenants (received a RL-31) or owners on December 31, 20XX?
- In the B. Information about your spouse section, select No for the question Did you have a spouse on December 31, 20XX?
- Click Medical and disability in the left-side menu
- In the Disability deductions, caregiver section, click the + sign next to Infirmity and disability amounts for the dependant*
- Enter the applicable information into the Name or description of dependant’s infirmity: field
- Select Claim disability amount (default) for the question Is the dependant eligible for the disability amount on federal line 31600?
- Select Yes for the question Does the dependant’s infirmity provide entitlement to the Canada caregiver amount?
- In the Quebec section, select Claim disability amount (default) for the question Is the dependant eligible for the amount for a severe and prolonged impairment in mental or physical functions on Quebec line 376?
- Select Needs daily assistance – living together for the question Does the dependant need assistance to perform a basic activity of daily living?
- It is not necessary to answer the last question in the Quebec section, since David is over 18 years old
- Since this example has no attendant care expenses, skip the next two fields
- To transfer the disability tax credit at the federal level, leave selection as Let MaxBack decide for the question Who should claim this dependant's unused disability amount?
- Select Full unused amount for the statement Indicate the amount to claim
- Select Yes for the question Shall the balance be transferred to the other spouse (if applicable)?
Canada caregiver amounts and tax credit for caregivers
- Click Medical and disability in the left-side menu
- In the Disability deductions, caregiver section, click the + sign next to Canada caregiver amount to claim for this dependant (line 30450) / Quebec Schedule H-Eligibility and dates of the qualifying period for this dependant (Quebec line 462)
- Select Let MaxBack decide for the first question
- Select Full amount for the question Claim a portion or the full amount?
- Select Yes for the question Transfer balance to the other spouse (if applicable)?
- For the Quebec caregiver amount questions, enter 01-01-2025 for Beginning date of the qualifying period for the caregiver amount (dd-mm-yyyy)
- Enter 31-12-2025 for Ending date of the qualifying period for the caregiver amount (dd-mm-yyyy)
- Select No for the question Will the qualifying period of 365 consecutive days (supporting a relative) be completed before July 2, 20XX?
- Select Let MaxBack decide for the question Who should claim the Quebec natural caregiver amount for this dependant?
- Select Full amount for the question Claim a portion or the full amount?
- Select Yes for the question Transfer balance to the other spouse (if applicable)?
Additional steps to consider
Ensure you have:
- answered questions related to the Quebec prescription drug insurance plan
- entered the amounts from social assistance payments (T5007 and RL-5 slips)
Takeaway points
RL-31 slip – Low-income housing residents
- Individuals living in low-income housing (HLM) do not receive an RL-31 slip because they are not entitled to the housing component of the solidarity tax credit
- Rebecca will therefore be entitled to the basic amount for her and her spouse
- her son is over 18 years old, and he is also entitled to the basic amount
- Even if the son is entitled to the disability tax credit (federal) and the amount for a severe and prolonged impairment in mental or physical functions (provincial), no amount is found on line 31600 of his federal tax return and on his Quebec income tax return an amount is generated on line 376, but he does not need it to reduce his income tax
- The disability amount transferred from a dependant is found on line 31800 of Rebecca's federal tax return
Canada caregiver amount and Tax credit for caregivers
- Rebecca was granted the Canada caregiver amount for her son David on line 30450 of the federal tax return
- Rebecca is receiving the tax credit for caregivers on the Quebec income tax return because the couple housed an eligible relative, their son, with a severe and prolonged impairment
- Rebecca has a refundable credit on line 462, which allows her to claim an equivalent refund on line 478.