September 12th, 2016

2016 Government report estimates cost of federal disability tax credits and benefits

In February, the Government of Canada released a report on its estimates of the cost of federal tax expenditures to administer tax benefit programs (based on its most recent data from 2013).   In particular, the report estimates the cost of tax expenditures for disability related credits and benefits available to individuals  (cost is generally the loss of tax revenue to the government as a result of offering the credit to eligible individuals).

The following table highlights estimates of the tax value of the prominent credits available to individuals with a disability or supporting family member (enhancement amounts to other credits as a result of a disability are excluded). The government estimates that in 2015, the value of these federal disability related credit programs will be $1.08B (not including amounts under parallel provincial credit programs).

Disability tax credits and benefits (estimates) (in millions of dollars) [i]

Tax Benefit No. of Beneficiaries 2015 2016 2017
Disability Tax Credit 630,000 860 895 930
Caregiver Tax Credit 230,000 135 140 145
Family Caregiver Tax Credit 210,000 70 75 75
Infirm Dependent Tax Credit 20,000 5 10 10
Disability Supports Deduction 1,600 1 1 1

[i] Department of Finance–Report of Federal Tax Expenditures-2016

Given the value of disability benefit programs available, if you are unsure that you are claiming all of the benefits you are eligible for, request a disability tax review by your tax preparer.