Disability Tax Credit & Medical Tax Claims

Disability Tax Credit & Medical Tax Claims Image

 

Eligibility:

You could be eligible for the Disability Tax Credit (DTC) if a medical practitioner certifies that you have a severe and prolonged impairment in 1 of the categories, significant limitations in 2 or more categories, or receive therapy to support a vital function.

The different categories are Walking, Mental Functions, Dressing, Feeding, Bowel or Bladder Functions, Hearing, Speaking, Vision, Life-sustaining Therapy.

You must meet the following criteria as set out below:

  • You are unable to perform an activity from the categories listed above, or it takes at least 3 times longer than someone of similar age without the impairment, even when using therapy, medication, and devices.
  • This impairment is present at all times or at least 90% of the time.
  • This impairment has existed or is expected to exist for a continuous period of at least 12 months.

This information must be completed and signed by a Medical Practitioner on Part B of Form T2201 to be submitted to the CRA for approval. Once approved, the CRA will advise how many years your DTC is eligible and will notify you 1 year in advance of your renewal date, and again in the renewal year. Therefore, a new application does not need to be submitted each year, unless otherwise stated on your approval notice. Medical Doctors and Nurse Practitioners are able to complete any section on the form, while Specialists are restricted to the section that applies to their practice. For example, an Audiologist can certify impairment with hearing, and a Speech-language pathologist certifies speaking abilities.

On the DTC application form, you can indicate if the disabled individual is claiming the DTC or if the spouse or a supporting family member is claiming the DTC.  You can also indicate on the DTC application form whether you want CRA to apply the credit to the previous tax years of the person claiming the DTC.  If not, you can file an adjustment request for the previous years’ tax returns. This can be done for up to the last ten years.

Deductible Medical Expense for those with Disabilities:

Certain medical expenses that assist with those with an impairment who attend school or work may be deductible. Examples include note taking services, reading devices, and talking textbooks to name a few.

Other deductible medical expenses include adult diapers or disposable briefs, deaf-blind intervening services, the cost for completion of Form T2201 by your medical practitioner, prescriptions including Birth Control Pills, and standing devices.

 

The above information is of a general nature only and should not be relied upon for specific situations.  Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.

Contact Us