Living with an impairment or disability can make life difficult. People with some disabilities are unable to afford the things that others take for granted. Purchasing food, personal hygiene items, and other life necessities can be a struggle. There are services and programs in place in Alberta to ease your financial strain. The Disability Tax Credit program reduces the amount of income tax you are required to pay, especially when you are taking care of children with disabilities..
Who is Eligible for Disability Tax Credit in Alberta?
Many people mistakenly assume that they are not eligible for the tax credits. To qualify for Disability Tax Credit in Alberta, you must have a physical or mental impairment that severely impacts your life and the ability to support yourself and your family. People enrolled in Life Sustaining Therapy qualify as well. The following list of qualifying disabilities provides an example of mental and physical disabilities covered under the Disability Tax Credit program:
- Borderline Personality Disorder (BDP)
- Brain Tumour
- Herniated Disc
- Learning Disability
- Motor Vehicle Accident
- Obsessive Compulsive Disorder
You qualify for the Disability Tax Credit due to the “cumulative effect of significant restrictions” according to policies implemented in 2005. Although your disability or impairment may not qualify you for full benefits, you may qualify for partial benefits. People who are over the age of 18 who care for someone with a physical or mental impairment also may qualify.
In order to qualify for the Disability Tax Credit, the disability or impairment must have been diagnosed and present for the past 12 months. Alternatively, the disability or impairment must be expected to last for at least 12 months. It’s important to note that there is no penalty for applying; people are encouraged to apply even if they are unsure if they have a qualifying disability.
Benefits of Disability Tax Credits in Alberta
People who qualify for the Disability Tax Credit, are eligible for yearly savings. Most people who qualify for the tax credit realize a savings of C$1,600 per year. You may also qualify for additional programs and services.
The Canada Disability Savings Bond
- Assists people with low to modest incomes (below C$41,544).
- Qualified individuals are eligible for up to C$1,000 per year with a limit of C$20,000 over a lifetime.
- Contributions to the Registered Disability Savings Plan (RDSP) are required.
The Canada Disability Savings Grant
- Qualified individuals receive a maximum grant of C$3,500 per year, with a limit of C$70,000 over a lifetime.
- Contributions made to the RDSP are matched up to 300 percent.
The Disability Tax Credit program is designed to help working individuals maintain a normal lifestyle by easing financial burdens. There is no cost associated with the application process. By applying today, you are able to discover if you qualify for a tax credit in Alberta. The sooner you apply, the sooner you are able to realize a significant tax savings that can greatly impact your ability to support yourself and your family.