The Canadian government understands that disabled persons have a more difficult time completing everyday tasks and overcoming financial struggles to meet their special needs, compared to non-disabled persons. While the federal government provides general assistance, each province also provides its disabled residents with supplemental benefits, such as the Ontario Disability Tax Credit.
Ontario Disability Tax Credit
Qualified recipients of the Ontario Disability Tax Credit are characterized by mental or physical impairment to the extent that the condition manifests for a long period of time or that it is severe, rendering the person unable to work regularly or not work at all.
Benefits of the Ontario Disability Tax Credit include a non-refundable tax credit taken out of the disabled person’s income tax, to help ease the financial burden caused by one’s disability. This allows disabled individuals to use the amount they save from the tax credit to help pay for their basic needs and special care.
To receive benefits of the Ontario disability tax credit, the disabled person must:
- Have a severe impairment in mental or physical functions;
- Said impairment must be prolonged and expected to last for more than 12 months as determined by a doctor and other medical professionals; and
- A medical professional must complete Form T2201 (Disability Tax Certificate) which details the effects of the impairment, establishing sufficient cause for the disabled individual to perform other day to day activities.
It is important to note that a decision to grant the Ontario disability tax credit is not based on a person’s ability to work at the time of application.
What Can Be Claimed as a Benefit of the Ontario Disability Tax Credit?
With the Ontario disability tax credit, qualified persons can deduct the following on their income tax return when completing the Disability Tax Credit Certificate
1. Child care expenses:
- Related to amounts you or someone else paid to have someone care for an eligible child so the child’s legal guardian could work, run a business, carry on research, or attend school.
2. Disability Support Deduction:
- Covers things like Braille note takers and printers, optical scanners, reading services, talking text books.
3. Other deductible amounts can be claimed through the Ontario disability tax credit:
- Including depletion allowances, and registered retirement savings plan contributions.
People who qualify for the Ontario disability tax credit also may use a program called the Ontario Disability Support Program (ODSP). People with disabilities may receive income support to pay for living expenses like food and housing, and employment support, which helps disabled people find and prepare for a job.
Here are also other programs that help disabled Canadians:
• Canada Pension Plan disability benefits
• Special Needs Assistance for Seniors
• Transitional Vocational Program
• Disability Related Employment Support
• Residential Rehabilitation Assistance Program
• Assured Income for the Severely Handicapped
• Long Term Care
• Adult Day Care Support Program
• Community Housing Program
• Canada Pension Plan Disability Vocational Rehabilitation Program
Together, the federal government of Canada and the province of Ontario offer a wide variety of programs and services to assist disabled persons and supplement the Canadian Disability Tax Credit.
Want to check disability tax credit laws for your loved ones in other provinces? Check our Province Resources here.