Disability Tax Credit Application Info for Anorexia Sufferers

January 23, 2014 by dccinc

Anorexia Nervosa is a serious disorder that qualifies an adult or child with Canadian citizenship for a non-refundable Disability Tax Credit when filing their taxes.

In this day and age, advertising and media has made a slender body seem to be all that matters in the looks department. The eating disorder, anorexia, is the result of extreme dieting with an obsessive urge to lose as much weight as possible. The priority then shifts to remaining thin and gets out of control. Anorexia is more common in women ages 10-60 years old.

The Canadian Government has recognized this life-threatening disorder as a disability. If a person fulfills certain conditions; they will qualify for a Disability Tax Credit to help simplify life and focus on getting help with their addiction. A minor may also qualify for a Child Disability Tax Credit for this disorder.

RDSP, Beneficiaries, and the Disability Tax Credit

An RDSP is a Registered Disability Savings Plan that the Canadian Government designed to help provide future financial security for those with disabilities. Contributions to this savings plan are not tax-deductible. They can be made until the beneficiary turns 59 years old. Many wonder who exactly can be a beneficiary to a RDSP. The chosen individual:

  • Must have a social security number
  • Must be a Canadian resident at the time the RDSP is opened
  • Must be eligible for the disability amount
  • Must be under the age of 60

Any individual that thinks they may qualify for the Disability Tax Credit is encouraged to apply for these benefits. It is also encouraged to apply if it’s believed that your minor would qualify for a Child Disability Tax Credit. It will allow enormous tax savings for families going through difficult times.

Disability Tax Credit Form T2201

If a person feels they qualify for the Disability Tax Credit, or that their minor qualifies for the Child Disability Tax Credit; they must first obtain a Disability Tax Credit application. This application must be requested through the Canadian Revenue Agency. The application that a person will receive is a disability tax certificate called ‘Tax Form T2201’.

  • Tax Form T2201- Part A
    The Tax Form T2201 Certificate has two parts that must be completed before sending it in. The first part, Part A, must be completed by the person who is applying for the Disability Tax Credit. If this person is unable to complete it on their own, a legal representative my fill it out with them.
    This form will ask personal information about the person with the disability. Among these questions will include how the person with the disability is being supported with food, clothing, and shelter. This information is needed in order for the Disability Tax Credit certificate to be approved. After Tax Form T2201-Part A is filled out in its entirety; the applicant can prepare for the completion of Part B.
  • Tax Form T2201-Part B
    The second part of Tax Form T2201-Part B must be filled out by a qualified practitioner. If the applicant is suffering from anorexia, a licensed doctor must fill it out. However, if the applicant is suffering from a visual or hearing impairment, that specific licensed doctor, such as an optometrist, should fill out that part of the certificate. Among these questions will include how disabled the person applying for the Disability Tax Credit is; and how they function in the day-to-day activities of their life.

Tax Form T2201 for the Disability Tax Credit- Approved or Denied

After the disability tax certificate T2201 is completely filled out and signed by the applicant and licensed doctor; it can then be sent to the Canadian Revenue Agency for the approval or denial of tax benefits. Once the application is submitted, a case worker at the Canadian Revenue Agency will contact you within two to three business days.

  • Approved: A case worker at the Canadian Revenue Agency will contact the individual to let them know that your Disability Tax Credit application has been approved. They will go over the benefits and Disability Tax Credit amount that they are eligible for.
  • Denied: Although it is uncommon for a Disability Tax Credit application to get denied; it can still happen. A case worker at the Canadian Revenue Agency will contact the applicant and make them aware of this decision. It may be due to the possibility of the Tax Form T2201 being improperly filled out. In this case, it can be corrected and re-submitted for approval. If the application is denied again, they can contact the CRA to appeal the decision. A case worker will inform the applicant of their options.

Disability Tax Credit Amount

If an individual is approved for the Disability Tax Credit, a case worker will inform you of the Disability Tax Credit amount that will be received. It will depend of different factors such as: current work, income, and stability of life during day-to-day activities. If a child with a disability, such as anorexia, qualifies for this credit; it can be confusing as to how it is applied since the child has no income. It is important to know that the child’s disability tax credit can be transferred to the caregiver that is providing the child with food, shelter, and clothing. In 2012, the tax credit claimed for this was a little over $4,400.

Disability Tax Credit Conclusion

The entire process for the Disability Tax Credit can take up to 120 days. If a low income individual is approved for the Disability Tax Credit and RDSP, they will also qualify for a government bond in the amount of $1,000. This will be given annually but will not exceed 20 years (which is $20,000 in bonds).
There are many services available to help treat an individual or loved one with anorexia. The Disability Tax Credit and Child Disability Tax Credit are designed to help those in need to overcome a very difficult disorder.
If an individual or family member is suffering from the serious, life-threatening disorder of anorexia, or any other mental health problem; they should apply for the Disability Tax Credit immediately.

Call us for help with the disability tax credit application process today

Use Our Simple Calculator to Estimate Your Disability Tax Credits & Benefits

Request a Free Assessment