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:
The Canada Revenue Agency has posted various helpful examples online on its page, Tax credits and deductions for persons with disabilities. Click on "See Scenarios" for the eligibility criteria supporting their DTC claim.
Michael is 19 years old and works part-time. Although we do not know whether he is mentally challenged or is living with a severe mental illness, he qualifies because "he has difficulty performing everyday tasks and self-care skills."
Cheryl has been slowing down in recent years and needs "to take time to recover after every walk." Also, she can "only concentrate on a given topic for a short period of time even though she could do the mental functions necessary for everyday life." Cheryl "qualifies under the category of cumulative effect of significant restrictions."
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.