What is the Disability Tax Credit?

The Disability Tax Credit (DTC) is non-refundable tax credit that can be used to help Canadians with disabilities and their family members/caregivers reduce the amount of taxes they would be required to pay to the Canada Revenue Agency (CRA).

The Person with Disability (PWD) must apply for the DTC and be approved by the CRA before including the tax credit into their tax return to reduce their tax payable. The tax credit is transferable and if a child under the age of 18 is qualified, a supplemental credit is available.

The DTC may be claimed retroactively maximum of ten years, which means that the PWD may receive a lump-sum tax refund* (up to ten years worth of refund).

*Refund amounts vary depending on your province of residence and your total tax payable.

Who should apply for the Disability Tax Credit?

In order to apply, the Person with Disability (PWD) must meet all the following criteria:

  • Be a Canadian Citizen;
  • Have had a physical and/or mental disability for a minimum of 12 consecutive months; and
  • The physical and/or mental disability must be certified by a doctor to be a marked restriction.

What are some of the physical/mental disabilities that may qualify?

Some of the physical/mental disabilities that may qualify include:

  • ADD
  • ADHD
  • Alzehimer’s Disease
  • Anxiety
  • Arthritis
  • Autism
  • Bipolar Disorder
  • Bran Injury
  • Cancer
  • Cerebral Palsy (CP)
  • Chronic Obstructive Pulmonary Disease (COPD)
  • Chron’s Disease
  • Dementia
  • Depression
  • Development Disability
  • Diabetes
  • Down Syndrome
  • Dyselxia
  • Elimination Disorder (Bowel Movement)
  • Epilepsy
  • Fetal Alcohol Syndrome (FAS)
  • Fibromyalgia
  • Hearing Loss/Impairment
  • Irritable Bowel Syndrome (IBS)
  • Learning Disability
  • Mental Functions
  • Osteoporosis
  • Paraplegic
  • Parkinson’s Disease
  • Personality Disorder
  • Poliomyelitis
  • Post Traumatic Stress Disorder (PTSD)
  • Quadriplegic
  • Rheumatoid Arthritis
  • Schizophrenia
  • Spinal Injury
  • Stroke
  • Visual Impairment
  • Walking Restrictions

What are the Benefits of being eligible for the Disability Tax Credit?

The benefits of being approved for the Disability Tax Credit includes:

  • Lump-sum refunds* for you or your family member as a caregiver;
  • Reduced future taxes for you or your eligible family/caregiver member for the years that you are eligible for the DTC;
  • Enhancements/Entitlements to other tax credits and deductions;
  • Eligibility to open a Registered Disability Savings Plan (RDSP) and receive up to $90,000 in government matching grants and annual government bonds; and
  • Tax-deferred estate planning options for family members and their RRSP’s.

*Depending upon province of residence, age of eligible individual, and taxable income amounts.

How do I apply for the DTC?

Ability Tax Group can assist you with applying for the Disability Tax Credit, as well as other valuable Tax Credits and Benefits that you or your family member/caregiver may be entitled to. By engaging us to do the work, you save time, money, and effort. Our risk free service includes:

  • No required up-front or application fees;
  • Thoroughly review your medical history and the personal tax history of you and your family member/caregiver to maximize Disability Tax Credits, deductions, and benefits;
  • Submission and adjustment request to Canada Revenue Agency (CRA) on your behalf;
  • On-going correspondence with Canada Revenue Agency (CRA) on your behalf (this can be daunting for most people);
  • Payment of fees to your doctor (if required) to complete your medical certificate;
  • Defend your application through a formal appeal process:
  • Collect a fee only if we are successful in recovering non-refundable tax refunds (we do not collect any fees if we are not successful); and
  • Contribute a portion of our fess to savings plan of RDSP eligible clients.

What if I have claimed the DTC in the past and I am now required to reapply?

We provide a DTC reapplication service for clients that are required to reapply for the DTC. As part of our services, we provide full support by way of appeals if your application is not approved.