People who live with a disability know that it can be very difficult to support themselves financially. If you are unable to work due to a disability, being able to purchase food, clothing, and pay for shelter is something that is no longer taken for granted. Fortunately, there are programs and services in place to ease your financial burden. There are disability tax credits in place to lessen the amount of income tax that families with disabled members are required to pay. If your family is already utilizing the Canada Disability Child Benefit or Hanson programs, you still qualify for disability tax credits.
Who is Eligible for disability tax credit in Ontario?
It is important to understand that to be eligible for the disability tax credit, you, your spouse, or your caregiver must have made timely tax payments in the past. To qualify for Disability Tax Credit in Ontario, you must have a mental or physical impairment that severely limits the day to day activities of life. People who need to spend time pursuing Life Sustaining Therapy also qualify. The following is a partial listing of medical disabilities that are covered:
- Bladder Disorder
- Bowel Disorder
- Cerebral Palsy
- Cystic Fibrosis
- Juvenile Arthritis
Additionally, you qualify for disability tax credit due to the “cumulative effect of significant restrictions” according to policies set forth by the Canadian Revenue Agency. Although you may not be disabled enough to qualify for full benefits, you will qualify for partial benefits. You also qualify for benefits if you are over 18 and are the caregiver of someone with a mental or physical impairment.
No matter the physical or mental impairment or disability, it must have been present or be expected to last for a period of more than 12 months. Because there is no penalty for applying, do apply even if you are unsure if your disability or impairment qualifies you.
Benefits of Disability Tax Credits
Once you have qualified for the Disability Tax Credit, you are eligible for yearly savings. Although circumstances vary, you may be eligible for a savings of C$1,600 per year. In addition, you may be eligible for additional programs.
The Canada Disability Savings Bond
- Designed to assist people with low to modest income.
- If you qualify, you will receive up to C$1,000, with a lifetime limit of C$20,000.
- Contributions must be made to the Registered Disability Savings Plan (RDSP).
The Canada Disability Savings Grant
- Maximum grant of C$3,500 per year, with a lifetime limit of C$70,000.
- Matches contributions made to the Registered Disability Savings Plan (RDSP), up to 300 percent.
The Disability Tax Credit program is designed to help people with mental and physical disabilities maintain normal lives while working to the degree they are able. There is no cost to find out if you qualify. Apply today to discover if you are eligible to receive the benefits of the program that was put in place to assist Canadians with disabilities.