The Government of Canada through Canada Revenue Agency (CRA) offers various tax refunds and benefits for individuals with disabilities. These benefits are provided for Canadians with many different types of health issues. The Disability Tax Credit (DTC) is one of the most important of these programs as it can go a long way towards helping offset the additional expenses associated with a prolonged impairment in physical or mental functions. The DTC is defined as a non-refundable tax credit which can help reduce a person’s taxable income to zero.
In order to become eligible to receive this valuable tax benefit, there are several factors which need to be considered. The severity and duration of the medical condition, the applicant’s taxable income during the time of their disability, and support provided by family members are just a few things that will help determine whether an individual can benefit from The Disability Tax Credit.
For example, once approved, the Disability Tax Credit can be transferred to your spouse, common-law partner, or any other supporting person. This is very important when considering an application for a child. There are other criteria which will need to be addressed during the application process as well (see Question #2 for more information).