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.
Update in 2019: It has taken more than five years, but it appears that legislation to significantly limit the amount that consultants can charge for assisting persons with disabilities or their family members in applying for the DTC will finally become effective. Under the new regulations, the maximum fee that a promoter can accept or charge is $100 for helping to complete the DTC application form.
Click HERE for more information about the Disability Tax Credit and watch the videos below.
You may be able to claim the CCC if you support your spouse or common-law partner with a physical or mental impairment.
You may also be able to claim the CCC for one or more of the following individuals if they depend on you for support because of a physical or mental impairment:
your or your spouse’s or common-law partner’s child or grandchild
your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, uncle, aunt, niece, or nephew (if resident in Canada at any time in the year)
An individual is considered to depend on you for support if they rely on you to regularly and consistently provide them with some or all of the basic necessities of life, such as food, shelter and clothing.