Nowadays, the financial crisis is the part of every person in society, and physically disabled people get more affected by this issue. As the disabled people may have to visit hospitals more often than the other people and they’re medical, and transport bills are higher than their monthly income. For some relief, the federal government of Canada supports people with severe disabilities by giving them a reasonable decrease in the amount of income tax that they are obliged to pay. The government offers disability tax credit DTC, and this is a nonrefundable credit. When a person with a specific disability is eligible to get the disability tax credit, he can claim the credit money and enjoy the return. The payment includes a supplement for people that are under the age of 18 years at the end of the year.
The criteria for eligibility is that the person must have a severe mental or physical disability that has been with the person for a minimum of one year or more. The disabilities have en categorized as follows:
- Not being able to perform routine activities such as walking, talking, eating, listening, etc.
- Life supporting therapies.
- Brain disability
- Permanent loss of memory, Alzheimer’s.
- Gastrointestinal related issues
Inflammatory Bowel Disorder, Incontinence
The person’s with the disability also has to attain the following conditions:
- The disability must be long-lasting, i.e., the person must be disabled for an extended period or be disabled for a minimum of one year or more.
- The disability is supposed to be present all the time or 90% of the time.
- Greatly restricted
- The combined effect of significant restrictions
T blindness of a person is defined as: if the person is provided with the necessary aids of seeing e.g., glasses or the lens, he/she is still unable to see. The criteria for the vision is given as:
- By using the Snellen Chart if the visual acuity in both eyes is 20/200 (6/60) or less,
- In both eyes, the greatest diameter of the field of vision is less than or equal to 20 degrees.
2. Greatly restricted
A person is said to be significantly restricted if, even with the help of medicines or the therapy, the person cannot perform one or more basic routine tasks. The restriction is supposed to be present at all the time of the person’s life or for almost 90 of the time.
3. Life-maintaining therapy
The person must fulfill the given mentioned conditions:
- Even the symptoms have been indicated the therapy is essential to perform the primary function of life.
- The time for the needed treatment is a minimum of three times a week, or at least 14 hours a week.
What counts in the 14-hour requirement?
The therapy is essential for you, and it takes a lot of your time. To receive the treatment, you have to leave the routine tasks behind and get life maintaining treatment. The device necessary for the procedure is not easy to set, and it takes a lot of effort to manage and organize the device. For example, to filter your kidney and make them do their work correctly, you need a Dialyzer tool.
If the person is so sick or he is not able to move freely and perform the work that is related to his therapy, then he has to get help from the caretaker.
Disability tax credit application
If the person has a job, he is still eligible for the disability tax credit. If an individual did not claim the disability tax credit amount, but he was suitable for it, then the Canadian Revenue Agency gives the relief. The person can ask for the adjustment for a decade. The disability tax credit application must be filled.
You have to fill and send the form T2201, Disability Tax Credit Certificate to the Canada Revenue Agency (CRA). The way is readily available on the Canada Revenue Agency’s official website. The patient himself must fill the first portion of the form, and the second portion of the way is to be filed by a medical professional, and he must certify the form. The reason behind this is that the practitioner can confirm the disability, its time, and its duration. He can tell the results and the effect of that disability on the person applying for the disability tax credit. The certificate that can be issued are given below:
- A medical doctor can certify all sorts of impairments.
- An eye specialist can verify all kinds of issues related to the vision.
- An audiologist can check hearing problems.
- A physiotherapist can certify the daily activities related to the movement.
After the application, if you are eligible for the disability tax credit, you can claim the disability amount of $8,416.
Supplement for persons under 18:
If you are eligible for the disability tax credit amount, and at the end of the year you were less than the age of 18 years, you can claim up to an additional amount of $4,909.
There may be some other person on whom you can depend, that person can also claim for that amount. Under specific circumstances, that person can transfer. If the person that you depend on has qualified for the disability tax credit (DTC), you are either claiming all the amount or some part of their disability tax credit amount on your tax return.
You could claim all the money or part of your dependent’s (a person who is not your partner or common-law partner) disability amount only if they were the citizen of Canada at any time of the year. They depend on you for either every necessity of life or the necessities i.e., food, a place to live, etc.
Furthermore, one of the following criteria must be fulfilled:
- If the dependent person does not have any income source, You claim an amount for that dependent, or you would have done that if you did not have a partner or common-law partner. The dependent can be an immediate family member i.e., you or your partner’s or common-law partner’s parent, siblings, grandparent, child, grandchild, aunt, uncle, niece, or nephew.
If the CRA approves you for DTC, then you must avail of the opportunity to take better care of your help.
If you need any help with disability tax credit’s rules and approving terms, Tohme-Accounting is a professional accountant who can make sure you benefit the most from medical discounts and life-maintaining therapy until you hopefully get well soon.