If you are one of the millions of Canadians currently unable to work because of a physical or mental disability, life can feel like a daily struggle. First, there is the matter of getting healthy. Then, there are the bills piling up because you’re currently not working.
That’s where the disability tax credit comes in, a deduction available from the Revenue Service of Canada. You first need to find out if you’re eligible. If you are, you should calculate how much money you can receive.
Use the following formula:
- (Appropriate Tax Rate Percentage) X (Base Amount + Supplementary Amount)The size of your credit is the first figure (currently set at 15 percent) multiplied by the sum of the latter two figures.
- Do You Qualify for the Supplementary Amount? – The base amount applies to all people eligible for the tax credit. In 2014 it was $7,766. The supplementary amount, on the other hand, applies only to those under the age of 18 at the time of applying. The supplementary amount is currently $4,530.In 2014, if you met the criteria for both the base and supplementary amounts, your disability tax credit would have broken down as follows:.15 X (7,766 + 4,530) = $1,845
- How Many Years are You Applying For? – If you’ve been disabled for multiple years but haven’t filed for a disability tax credit, the Revenue Service allows you to receive a tax deduction for past years as well. You do need to have a doctor prove that your condition has lasted as long as you claim on the form.
Bottom line is this, receiving a tax credit for past years can multiply your small sum into thousands of dollars.
If you need more information about calculating your credit, visit our Disability Tax Credit Calculator . contact Disability Credit Canada today!