For individuals and/or family members with disabilities, the Canada Revenue Agency (CRA) has a program called Disability Tax Credit Certificate (DTC). The purpose of this government program is to help persons with disabilities or for individuals supporting a disabled person, reduce the amount of income tax they need to pay.
Eligibility for DTC documentation
To qualify for the DTC there is a form that needs to be completed and sent to CRA. Part of the form is a section a medical practitioner is required to complete by describing and certifying the individual’s disability as well as any limitations. The medical practitioner may charge for completing this form; make sure to keep the receipt to include with your tax return as a medical expense.
Criteria for dtc
The CRA is very specific of the criteria to be eligible for DTC. In order to be eligible a person must meet at least one of the following;
- Have restriction in performing at least one basic daily activity
- Significant restrictions in two or more basic daily activities; this may include visual impairment
- Require life-sustaining therapy (respirator, cardiopulmonary resuscitation, dialysis, surgery)
impairment must meet all the criteria;
- The impairment has or is expected to last continuously for a period of 12 months
- Impairment is continuous at least 90% of the time
To learn more about CRA criteria for Disability Tax Credit click here for the link
Conditions that qualify for DTC include;
- Digestive Disorder for example; Inflammatory Bowel Disorder, Colitis, Prostate Problems.
- Limited Mobility Issues – Back and Neck Problems.
- Breathing Disorders for example; Chronic Obstructive Pulmonary Disease (COPD), Emphysema, Tuberculosis, and Asthma.
- Visual Impairments
- Hearing Impairments
- Cognitive Impairments for example; Memory Loss, Dementia, Alzheimer’s
approval of dtc
Once CRA approves your applications for DTC Certificate;
- You can request an adjustment from CRA to go back10 years to receive retroactive claims
- You are allowed to claim the disability amount on your tax return
- The disability amount can be transferred to family member and/or spouse the impaired individual is dependent upon for their basic food, shelter, and clothing needs.
At Banka & Company, CPA we have assisted many of our clients by providing the documentation that needs to be completed. If you or an individual you believe qualifies for the Disability Tax Credit Certificate, contact us to find out how we can be of assistance 250-763-4528 or email firstname.lastname@example.org.