Finding out Knowing who qualifies for a disability tax credit is a tricky business. At Disability Credit Canada, we can provide you with all you need to know about Disability Tax Credit Eligibility.
Many conditions may qualify for the disability tax credit, for a full list click here.
Our goal is to educate people about the kinds of disabilities. A lot of us are still unsure about what qualifies as a disability due to lack of available information. Here, we are able to reach out to you to help increase awareness on various kinds of disabilities and how you may qualify to receive benefits for which.
A qualified disability can give you up to $40,000 income tax relief. The amount you save from paying less taxes can be used to help with the financial burden of living with a disability. If you did not have any income or do not owe any taxes, then this credit will not help you as it is only available to lower the income tax you owe, and is non-refundable.
How to determine your Disability Tax Credit Eligibility?
Many factors are taken into account when reviewing your eligibility for disability tax credit. To get started, here are a few standard guidelines to help you determine your Disability Tax Credit Eligibility.
1. Have you been impaired for, or expect to be impaired for, at least 12 months?
- If the answer is yes then you should continue asking yourself the remaining questions; otherwise, you are not eligible for a disability tax credit.
2. Are you blind?
3. Do you receive life-sustaining therapy?
- Examples include any therapy or devices used to facilitate breathing, or kidney dialysis.
4. Does your impairment cause marked restriction to any of the following daily activities?
- Elimination (bowel or bladder functions)
- Mental functions necessary for everyday life
- The CRA defines “markedly restricted” as: “You are markedly restricted if, all or substantially all of the time (at least 90% of the time), you are unable or it takes you an inordinate amount of time … to perform one or more of the basic activities of daily living … even with therapy (other than therapy to support a vital function) and the use of appropriate devices and medication.”
5. Do you meet all of the following conditions?
- Are you significantly restricted in two or more of the daily activities mentioned above even with the appropriate medicine, therapy and devices?
- Do these restrictions exist together at least 90% of the time?
- Is the cumulative effect of these restrictions equivalent to being “markedly restricted” in a single basic activity of daily living?
If you answered yes to question 1 and yes to one or more of questions two through five then you may qualify for disability tax credit. Keep in mind that if you receive disability benefits from the Canada, or Quebec, Pension Plans, workers’ compensation benefits, or other types of disability or insurance benefits, you do not necessarily qualify for the tax credit.
You may also find it helpful to check specific requirements prescribed by your province in our province eligibility resources.
Approval and Appeals
After meeting all the requirements set by the province of your residence, you may be approved to receive your Disability Tax Credit. This decision is based on the information provided by medial professionals who assist with completing your application.
If your application was denied despite passing our Disability Tax Credit Eligibility screening and you feel that your application was able to build a strong case, you can file an appeal. An appeal is accomplished with a signed letter and completed Form T400A – Objection – Income Tax mailed to Chief of Appeals, Sudbury Tax Services Office, 1050 Notre Dame Avenue, Sudbury ON P3A 5C1. If you prefer, you can also file your objection online at Canada Revenue Agency. You may also find it helpful to review this guide on tax appeals and ojections.