Tax Credits/Benefits

The Income Tax Act of Canada provides many tax credits, deductions and benefits to persons with a disability and their families. Depending on your situation, you may be able to claim some of these credits together* and request adjustments to prior years’ tax returns that could generate a substancial amount in tax refunds for you and your family member or caregiver.

*Remember, not all of the following disability related credits may be claimed together.

Disability Tax Credits (and Child Supplement)

The Disability Tax Credit (DTC) helps Canadians with disabilities and their family members/caregivers reduce their tax payable. A qualified practitioner must complete the Disability Tax Credit Certificate to certify the severity of your disability. The credit is transferable and if a child under the age of 18 qualifies, a supplemental credit is available. If your DTC application is approved, you may be eligible for tax adjustments and refunds* (up to ten tax years) under the Taxpayer Relief Provisions.

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

Caregiver Amount

You may be eligible for the Caregiver Amount if a Dependant* (age 18 or older) with a mental and/or physical disability lives with you. In order to claim the Caregiver Amount on your 2011 tax return, the Dependant must be a Canadian resident, and have a net income of less than $18,906 in 2011.

*The Dependant must be the caregiver’s or their spouse’s sister, brother, niece, nephew, aunt, uncle, parent or grandparents.

Infirm Dependant Tax Credit

You may be able to claim the Infirm Dependant Credit if you provide support to a Dependant* (age 18 or older) with a mental and/or physical disability who is not currently living with you. In order to claim the Infirm Dependant Credit, the Dependant must be a Canadian resident, and has a net income of less than $10,358  in 2011.

Eligible Dependant Tax Credit

You may claim the Eligible Dependant Credit if you do not have a spouse or common–law partner and have supported or currently support a Dependant* (who is either under age 18 or have a mental and/or physical disability) who lives with you and has a net income of less than $10,527 in 2011.

Disability Supports Deduction

You may deduct expense that you have incurred throughout the year in order to go to work, go to school, or complete research for which you have receive a grant if you have a physical and/or mental impairment.

Medical Expenses – Updated with Budget 2011 Amendments

You may claim a Medical Expense Tax Credit for eligible expenses for you and your spouse or common law partner and for any of your children who are under 18 years of age. You may also claim the Medical Expense Tax Credit in respect of eligible expenses incurred in respect of a “Dependent” relative if you have paid for medical expenses on this/her behalf. A “Dependent” relative is defined as a child who is 18 years of age or older, a grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew of you, your spouse or common law partner who is dependent on you for support.

Family Caregiver Tax Credit – NEW with Budget 2011 Amendments

Beginning in 2012, you may be able to claim a Family Caregiver Tax Credit for a Dependant with a mental or physical infirmity including spouses, common-law partners and children under the age of 18 years old. This credit will act as an “enhancement” to the other available infirm dependency related available credits but will be subject to the Dependant’s income level.

Children’s Arts Tax Credit – NEW with Budget 2011 Amendments

Beginning in 2011, you may claim an enhanced Children’s Arts Tax Credit (“CATC”) for a child eligible for the Disability Tax Credit. The enhanced CATC allows parents of children with a disability under 18 years of age to claim up to $500 in eligible expenses for artistic, cultural, recreational, or developmental activities PLUS an additional $500 disability supplement amount when a minimum of  $100 is paid in eligible expenses.

Attendant Care Expenses

You may claim amounts you or your spouse have paid for attendant care in a number of places including nursing homes, retirement homes, group homes, and certain special schools. You can also claim amounts paid for care of a dependant in any of the above places. Some attendant care expenses may be eligible for the Disability Supports Deduction.

Tuition and Education Credits

If you have a physical and/or mental disability and attend a post-secondary school, you may claim $400 per month for attending school part-time if you qualify for the DTC.

Other Available Tax Credits

Other available Tax Credits for Persons with a Disability or a family member/caregiver includes:

• Enhancement of Child Care Expense Amounts

• Enhancement of Child Fitness Amounts

• Working Income Tax Benefit Supplement

• Refundable Medical Expense Supplement

• Home Buyer’s Tax Credit Amount