There are a great number of problems and challenges that would qualify a person for the Canadian Revenue Agency’s Disability Tax Credit (DTC) but many are unknown to the general public. One of those is a problem that many people are unaware that they even suffer from. It manifests emotionally with a foreboding sense of dread or an unexplainable restlessness. It can show physical nausea and profuse sweating. It is known as an Anxiety Disorder and, once diagnosed, falls under the province of the Disability Tax Credit.
First a little background on the Disability Tax Credit
- What is the Disability Tax Credit? The Disability Tax Credit is a non-refundable credit for those taxpayers who suffer from disabilities including any severe mental or physical impairment that affects the sufferer’s day-to-day living. If you have been dealing with your disability for an extended period, your tax returns from as far back as ten years prior can be reviewed.
- Is there a Child Disability Tax Credit? The DTC does allow for children under the age of 18 to be included if they are suffering from disabilities such as ADD, Fetal Alcohol Spectrum Disorder, Autism, anxiety disorders, and Diabetes, just to name a few. You can read our guide on Disability Tax Credit for Children to find out more. As with an adult, the disability must be one that the individual has dealt with or is expected to deal with, for at least twelve months.
- How does one become eligible for the Disability Tax Credit? Eligibility for the Disability Tax Credit is determined by a medical professional who must fill out and sign the T2201 tax form (also known as the Disability Tax Credit Certificate). Then the Canadian Revenue Agency has to approve the application before it can be processed. If, for whatever reason, you are a person with no taxable income, you are still eligible for the Disability Tax Credit as it is wholly, or partially, transferrable to your spouse/partner.
Now while many disabilities such as HIV, heart disease, and Parkinson’s qualify a person to receive the Disability Tax Credit, as mentioned previously, anxiety disorders are ones that sufferers may be surprised to learn qualify them to receive the DTC.
- What is an Anxiety Disorder? An anxiety disorder is one in which the symptoms create significant duress that interferes with the sufferer’s daily living. Symptoms can include heart palpitations, chest pain, shortness of breath, nausea or vomiting, and an inability to concentrate, just to list a few. Now these are symptoms that an average person may experience from time to time so the important thing to monitor is to the degree to which they interfere with the life of the individual.
- Are there different Anxiety Disorders? Anxiety disorders fall under five different categories, all of which are covered under the Disability Tax Credit.
- Panic Disorders: Panic attacks are a common symptom of this disorder and are usually accompanied by feelings of intense fear that is overwhelmingly powerful
- Phobias: Phobias fall under two categories, specific and social. The latter is one with which most people are familiar as it rears its head in things like fear of spiders (arachnophobia) or a fear of the outside (agoraphobia). The social version lends itself to a fear of social settings and an overwhelming anxiety associated with social interactions.
- Post-Traumatic Stress Disorder (PTSD): associated with individuals who have experienced some sort of traumatic event (war, rape, or an earthquake for example) and suffer from symptoms like flashbacks, irrational anger, and nightmares
- Obsessive-Compulsive Disorder (OCD): A person dealing with an OCD generally suffers from persistent thoughts that lead them to perform some repetitive action to ease the anxiety created by the thoughts
- Generalized Anxiety Disorder (GAD): This type of Anxiety disorder is characterized by an individual suffering from heightened anxiety over the most routine of situations that persists for six months or more
How can the Disability Tax Credit help me?
The Disability Tax Credit offers a variety of forms of credit, benefits, and grants for those coping with Anxiety Disorders and for those who care for them. The disability tax credit can help with child care or tuition expenses, and even work as reimbursement for medical expenses incurred in the treatment of a disorder. As previously mentioned, even an individual’s spouse/partner can receive credit if the disabled party is someone with no taxable income.
What is the Disability Tax Credit Amount?
For the year of 2012, the Canada Revenue Agency (CRA) reported that the Disability Tax Credit amount was $7,546.00 for a disabled person 18 years old and older while in the case of those under 18, it was that same amount plus an additional supplement of $4402.00
How long does it take to receive the Disability Tax Credit?
It may take as little as two to three months to receive your DTC, especially for those individuals who are working with a doctor or some other professional to help treat their disorder.
How Can I Use the Disability Tax Credit?
The Disability Tax Credit is not required to be spent in any specific way, rather it is intended for the receiver to spend it as they see fit. In the case of those dealing with an Anxiety Disorder, it could be used for treatments such as Cognitive Behavioral Therapy or for their prescribed medications.
The beauty of the Disability Tax Credit is that it allows the beneficiary to use the money however it is most needed. Whether to assuage the cost of treatment or to pay for day-to-day expenses, the DTC is available to every individual living with their Anxiety Disorders, as well as numerous other covered disabilities.
If you, or someone you care for, are living with the Anxiety Disorders discussed here, make sure to discuss your options with not only your medical care professional, but also with your tax professional. Just by filling out the T2201, you may find yourself with extra money that can help ease your anxieties thanks to the Disability Tax Credit.
If a family member suffering from anxiety we can help with the disability tax credit application process. call us now!
