Tax Credit for Individuals

The disability tax credit (DTC) provides tax assistance to individuals who, because of the effects of a severe and prolonged impairment, require extensive therapy to sustain a vital function, or are markedly restricted in their ability to perform a basic activity of daily living as certified by a qualified medical practitioner. Individuals are markedly restricted if, even with therapy or the use of appropriate devices and medication, they are blind or unable to perform a basic activity of daily living, or if they require an inordinate amount of time to perform the activity, all or substantially all of the time. The basic activities of daily living are walking; feeding and dressing oneself; perceiving, thinking and remembering; speaking and hearing.

Eligibility for the DTC is not based on the diagnosis of an impairment; rather, it is based on the severity of the symptoms and the effect of the impairment on the person’s ability to carry out a basic activity of daily living over a continuous and prolonged period of time. In addition, eligibility for the DTC is not dependent on an individual’s qualification under another program, such as Canada or Quebec Pension Plan disability benefits, workers’ compensation benefits, or other types of disability or insurance benefits. Different programs are designed for different purposes, and consequently may have different criteria. In order to be eligible for the Disability Tax Credit, a qualified practitioner must provide the Form T2201 Disability Tax Credit Certificate, which proves the severity of the impairment.

Tax Credit for Caregivers

If you live with a relative of yours, or of your spouse or common-law partner’s, who is dependent on you because of a physical or mental impairment, you may be able to claim the caregiver amount; this also applies to parents or grandparents born 1947 or earlier.