What is the Disability Tax Credit?
The disability tax credit (DTC) is a non-refundable tax credit that helps people with impairments, or their supporting family member reduce the amount of income tax they may have to pay.
If you have a severe and prolonged impairment, you may apply for the credit. If you are approved, you may claim the credit at tax time.
By reducing the amount of income tax you may have to pay, the DTC aims to offset some of the extra costs related to the impairment.
Disability Tax Credit Application Form
Parents can apply for the disability tax credit for their children.
There is an increased amount on the Canada Child Benefit for each child with an approved DTC. You could get up to $3,173 ($264.41 per month) for each child who is eligible for the DTC.
With a Disability Tax Credit you can also open a Registered Disability Savings Plan (RDSP).
Once opened the government will put $1000 in the account each year that the individual made under $32,000. To a max of $20,000 towards retirement.
Part A of the application form should be filled out by the individual and part B must be filled out and signed by a licensed medical practitioner.
After submitting the T2201 Disability Tax Credit form to the CRA, it can take anywhere from 3 to 6 months before the CRA notifies you about your eligibility/application status.
To submit online, scan your form and send it through the “Submit documents” service in your CRA My Account at canada.ca/my-cra-account.
You can also send your application by mail to:
Winnipeg Tax Centre
Post Office Box 14000, Station Main
Winnipeg, MB R3C 3M2
For more information on the Disability Tax Credit, you can visit the link:
