What is Disability Tax Credit?
The Disability Tax Credit is a non-refundable tax credit used to reduce the amount of tax payable on your income. It is available to Canadians who have a qualifying severe and prolonged impairment that impacts the activities of daily living; where the ailments are not likely to get better any time soon and have already been in place for a period of at least one year.
What is Physical Impairment?
Disability Tax Credit covers impairment of walking, dressing, speaking, hearing, feeding, legal blindness, elimination (bowel or bladder function) and other associated disabilities. Disability Tax Credit applies to individuals who receive therapy that sustains your life such as kidney dialysis or chest physiotherapy.
What is mental function?
Disability Tax Credit covers mood disorders, schizophrenia, bipolar disorder, learning disability, mental health and function like depression and stress.
General Comments
- A person can claim Disability Tax Credit if they have a severe prolonged mental or physical impairment.
- Disability Tax Credit is probably one of the most commonly missed and valuable tax credits available to taxpayers.
- Disability Tax Credit can be transferred to a supporting person or related caregiver, a person who provides help and support; this tax credit may be transferred to that person.
- People with disabilities are missing important tax credits and may have significant unclaimed tax refunds from previous years because they have not applied.
- If you are eligible and paid taxes in the past years, The Disability Tax Credit claim can apply as far back as 10 years.
- Disability tax credit certificate can be completed after death. This certificate can be made after the taxpayer dies where it is based on a prognosis made by a qualified practitioner before the individual died, and where the individual's severe impairment was reasonably expected to last for a continuous period of at least 12 months.