Disability Tax Credit
- To be eligible for the DTC you must have a mental or physical disability lasting at least 12 months.
- You do not have to have a disability in all of the categories listed in the application form.
- The inability to work is not considered, what is important is how the impairment affects you on a day-to-day basis.
- There is no age limit. Any person with a disability (PWD), including children and seniors, may apply.
- The Disability Tax Credit requires taxable income to generate a tax refund.
- Because the tax credit is calculated based on taxable income the amount of the credit can vary from person to person.
- The DTC can be transferred to a spouse or a blood relative.
- There is no survivor benefit, however, the credit can be claimed for a deceased PWD with the tax refund sent to the executor of the will.
- You can reapply, but new information is required.
- You can ask for a reconsideration, appeal or object.
- You must submit your appeal within 90 days of the letter of determination.
- We can submit an official appeal with additional doctor information.
- If you are still denied, you can take your case to tax court.
Child Disability Benefit
- Attached to the DTC for children under the age of 18.
- Paid on a monthly basis to the parent or guardian who is already eligible for the Child Tax Benefit.
- Based on family income.
- A person with a disability, who is of the age of majority (18 or 19 depending on the province) and has the legal capacity to manage his or her finances; or
- The parent of a child with a disability; or a guardian who is legally authorized to act on behalf of a person with a disability.
- As of 2011, upon the death of the parent or grandparent of a financially dependent child or grandchild with a disability, some or all of the deceased individual’s retirement savings can be transferred tax-free to their dependent’s RDSP.