It’s tax season, and I am reminded of the benefits of qualifying for the federal Disability Tax Benefit in Canada.
The DTC is administered by Revenue Canada. It can be daunting to apply, and some people have to apply more than once to be approved (like me!). But if you can overcome the obstacles, it is a helpful tool for people with disabilities.
BENEFITS FOR ADULTS:
*Can open a Registered Disability Savings Plan (RDSP) and receive federal grants and deposit matching.
*$9428 annual tax credit.
*Eligible in June 2024 for upcoming national dental care program.
*If you were eligible for the DTC in past years but did not claim the disability amount, you may be able to claim it going back up to 10 years, have your taxes reassessed, and receive tax refunds retroactively.
BENEFITS FOR CHILDREN:
*Guardian can open a Registered Disability Savings Plan (RDSP) on their behalf and receive federal grants and deposit matching.
*$14,928 annual tax credit for their guardian.
*Monthly payment to guardian of Child Disability Payment (based on income, max. monthly payment of $264)
*If the child had been eligible for the DTC in past years but the guardian did not claim the disability amount, it may be claimed going back up to 10 years. Guardian could then have their taxes reassessed and receive tax refunds retroactively.
As a federal program, the DTC is not connected to any provincial disability programs or other benefits.
Eligible applicants may be eligible for the DTC if a medical practitioner certifies that they have a severe and prolonged impairment in 1 of the categories (as an example, I qualified because of my poor mobility), significant limitations in 2 or more categories (often used for autistic people who struggle in several areas), or receive therapy to support a vital function (such as Type 1 Diabetes).
The application process can be intimidating, involving paperwork that requires a signature from a medical professional. However, there are a couple of Facebook groups that I found helpful in navigating the process:
https://www.facebook.com/groups/disabilitytaxcredit/?ref=share&mibextid=NSMWBT
https://www.facebook.com/groups/dtc.solutions.inc/?ref=share&mibextid=NSMWBT
Do NOT fall victim to predatory companies that require that you sign a contract and then take a percentage of any resulting tax refunds.
The two Facebook groups that I link above do offer help completing your application for a flat fee. I found that service helpful and worthwhile. However, with a conscientious doctor’s support, many people can manage on their own.
One final reason to consider applying for the Disability Tax Credit… the Canadian government is currently working on implementing a Federal Disability Benefit. This monthly payment is intended to increase the standard of living for disabled people in Canada. We don’t know yet how it will be administered (or anything else, really). However, the new national dental program is being offered to people who have qualified for the DTC. I wouldn’t be shocked if the Federal Disability Benefit also uses DTC eligibility to streamline applications.
Poverty Advocacy Nanaimo 