Canada’s disability tax credit program has been a life-saver for millions of families. Let’s face it: accidents and injuries happen, and we are sometimes left unable to work. For cases like those, the tax credit allows you and your family to claim up to several thousand dollars annually in tax reductions. To find detailed information on these tax credits, Check out our Ultimate Disability Tax credit Guide and Child Disability tax credit guide. You can also calculate how much you might be eligible for using our disability tax credit calculator.
If this year will be the first time you apply for a credit, you probably have lots of questions about the process.
For starters, how is the disability tax credit paid?
- The Credit is a Tax Deduction – The tax credit comes in the form of a reduced tax bill. If found eligible, the Revenue Service of Canada will calculate how much you’re eligible for, then subtract that sum from the money you would otherwise pay in income taxes.
- You Receive it With Your Tax Return – It is important that you submit the disability tax certificate (the application form) before filing your taxes in any given year. While not a requirement, that ensures you get the money on time, when your family needs it most. The sum will be delivered as an addition to your standard tax return.
- Four to Six Weeks Processing Time – The Revenue Service takes four to six weeks to process tax filings, with work starting in February of each year. If you submit the certificate before 15 April, wait at least four weeks before calling to check up. Wait six weeks if you submitted after 15 April.
It’s never fun to deal with bureaucracy, paperwork and applications, but the disability tax credit process is surprisingly simple. Should you need any information or assistance, however, we at Disability Credit Canada are always there to help. We can guide you through the entire process, even forwarding your Disability Tax Credit certificate to the tax center!