Disability Tax Credit Overview

The Disability Tax Credit (DTC) reduces the amount of tax payable for qualifying individuals with severe and prolonged impairments or their supporting family members.

The eligibility criteria for an individual are:

• legally blind; or
• receiving life-sustaining therapy; or
• markedly restricted or unable or it takes an inordinate amount of time to perform one or more of the basic activities of daily living including speaking, hearing, feeding, dressing, walking, eliminating, or mental functions even with appropriate therapy, medication and devices; or
• significantly restricted or unable or it takes an inordinate amount of time to perform two or more of the basic activities of daily living even with appropriate therapy, medication and devices.

The Canada Revenue Agency allows individuals to claim the DTC up to 10 previous years if there is objective medical evidence supporting the claim.

Form T2201 Disability Tax Credit Certificate now asks the doctor, "For which year(s) have you been the attending medical practitioner for your patient?"

Concerns have been expressed that some medical pracitioners may be intimidated from completing Form T2201 for their patients because of the threatening statement under the signature line advising them that "It is a serious offence to make a false statment."

Qualifying for the DTC enables some individuals to access other federal and provincial government income support programs including the Registered Disability Savings Plan (RDSP), the Child Disability Benefit, the Working Income Tax Benefit, Qualified Disability Trust Benefit and also the Medical Services Plan in British Columbia.

Note: Nurse practitioners have been added to the list of medical practitioners qualified to complete Form T2201 effective March 23, 2017.