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FREQUENTLY ASKED QUESTIONS (F.A.Q.)
- I am not severely disabled; can ATG still help me apply for the DTC and related credits/benefits?
Yes. In the past, Canada Revenue Agency eligibility requirements were more restrictive; an individual had to be severely disabled (bed-ridden, wheelchair, etc.) to qualify for the DTC. In recent years, CRA has deemed eligible many conditions that were previously not accepted. Some examples of these conditions are Fibromyalgia, Rheumatoid Arthritis, Osteoarthritis and Learning Disabilities. Eligibility is not dependent on a diagnosis, but rather how you are affected by your condition. (See examples of types of conditions that have qualified in the past, or contact us for a free assessment.)
- I do not have any taxable income as I have been unemployed due to my disability. Will I still be eligible to qualify for the Disability Tax Credit (DTC)?
Yes. Eligibility for the DTC is not determined by your annual taxable income. The DTC can be transferred to supporting family members to reduce their taxes payable and is a requirement for you to qualify for Government of Canada grants and bonds under the Registered Disability Savings Plan (RDSP) program.
- I am currently receiving periodic payments from Workers Compensation Board (WCB). If I am qualified DTC, will my WCB payments be affected?
Generally no. The WCB does not consider the DTC in its calculation of net earnings when determining the base amount for which your compensation rate applies. There is no tax payable on WCB payments. Contact your provincial WCB for a complete description of their calculation method of net earnings.
- I have had my disability since birth, how many years can the DTC be applied to?
Under the Taxpayer Relief provisions, you may file retroactive claims for a maximum of the previous ten years. In most cases, once your DTC is approved, you can continue to claim the credit on your future tax returns until such time as your medical condition has improved.
- I did have a restriction in the past years; however my condition has improved or no longer exists. Can Ability Tax Group (ATG) still apply for the DTC and related credits/benefits for me?
Yes. As long as your restriction lasted for at least one year continuously, ATG can apply credit/benefits to the years in which your condition existed.
- Why am I not expected to pay an up-front fee to Ability Tax Group LLP for the Disability Tax Credit filing?
We understand the financial hardships for people with disabilities. We do not require any application or processing fee. For eligible clients, we will pay the medical fees associated with the completion of the DTC application form by their qualified medical practitioner. We have confidence in our abilities to recoup your entitlements to tax related disability credits and benefits. As a result, we only charge a contingency fee on the amount of refunds we are successful in claiming for on your behalf. No Refunds, No Fees--it is as simple as that!
- I have previously filed for bankruptcy. Will I still be eligible to qualify for the DTC?
Yes. Any refunds you are entitled to as a result of a retroactive claim must be paid to you post-bankruptcy. A recent Supreme Court Of Nova Scotia decision has ruled that retroactive payments of non-refundable credits are characterized as income for purposes of the Bankruptcy and Insolvency Act (BIA). This would suggest retroactive claim entitlements pre-bankruptcy should be paid to you as well and not the Trustee.
- My son/daughter has a disability, but he/she is under 18 and does not pay taxes. May I claim the Disability Tax Credit (DTC) on their behalf as his/her parent? Is there an age restriction for the Disability Tax Credit?
Yes. Transfers of the DTC are allowed to supporting family members. We can work with parents, adult children, spouses, legal guardians, and legal representatives (such as Power of Attorneys). There are no age restrictions with respect to eligibility for the DTC. A supplement credit to the DTC is available for children under the age of 18.
- If my claim is successful, how long will it take before I receive my refund cheque?
Once ATG has filed your claims with the CRA (i.e. we have received all documents/information from you and your medical practitioner), it may take the CRA up to six months to issue final confirmations and reassessments. The average time is approximately 4 months and we will keep you updated throughout the entire process.
- Beyond the DTC, are their other credits and benefits I am entitled to?
Yes (see under 'Available Credits and Benefits'). As part of our 'Ability Wealth Program', we review your tax situation and file on your behalf all claims for credits and benefits you are entitled to. As with the DTC, many of these available credits and benefits may be claimed retroactively for
the previous ten years.
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