Manitoba Disability Tax Credit Calculation, Eligibility and Application

In Manitoba, as in other Canadian provinces, various programs exist to provide tax credits and benefits to individuals living with disabilities. These initiatives aim to alleviate the financial challenges associated with disabilities, ensuring that qualified individuals can maintain a standard of living comparable to that of the broader community. Updated and revised in February 2024, our Manitoba Disability Tax Credit guide reflects changes to the Disability Tax Credit application process, refund amounts, and any other pertinent information. Specifically tailored for Manitoba residents, this guide comprehensively addresses all aspects of how the Disability Tax Credit (DTC) can alleviate the financial strain of living with disabilities Disability Credit Canada is dedicated to assisting disabled Canadians in accessing programs like the Disability Tax Credit and CPP Disability Benefits. Our mission is to help individuals qualify for these vital benefits and maximize their tax refunds and credits. With our expertise, we aim to simplify the process and ensure that those in need receive the support they deserve. From covering expenses such as treatments, medications, and specialized education to providing the most up-to-date information on eligibility criteria and application processes, consider our guide your go-to resource for navigating the Disability Tax Credit in Manitoba. PLEASE NOTE: This guide has been written based on our extensive knowledge and years of industry experience to ensure its accuracy and comprehensiveness in educating and informing our fellow Canadians. However, this should not be used as a substitute for official documentation provided by the CRA on the DTC. Therefore, we request that you use it wisely!

What is The Disability Tax Credit?

The Disability Tax Credit is a non-refundable tax credit created by the Canadian Government and Canada Revenue Agency to assist those with disabilities who work and pay federal income tax. It was created to alleviate the additional costs of disabilities by reducing the amount they must pay on their taxes.

• The Disability Tax Credit is available to those who: Have extreme difficulty performing ‘activities of daily living.’ Have contributed to federal taxes during the year they are applying.

The Disability Tax Credit is also available to families with disabled children under 18 through the Child Disability Tax Credit and the Child Disability Benefits. To learn more about the Child Disability Tax Credit, check out our in-depth guide.

Who is Eligible for disability tax credit in Manitoba?

In the province of Manitoba, you qualify for disability credits if:

• You have severe impairment in mental or physical functions.
• Your impairment is prolonged; it has lasted or is expected to last at least 12 consecutive months.
• A certified practitioner declares that your impairment meets the above conditions

In addition to the disability requirements applicants must also:

• Live in the province of Manitoba.
• Be a permanent resident of Canada or a Canadian Citizen.
• Have paid taxes in the past, or have a spouse or primary caregiver that has paid taxes in the past.

If you qualify, you are eligible to receive disability tax credits in the form of non-refundable tax credits that reduce federal and provincial income taxes up to $6,180. If you are eligible for the credit but cannot use all or part of it due to a lack of taxable income, then you can transfer the credit to a spouse, common-law partner, or another supporting person. Children who are under 18 years of age, who are eligible for the disability tax credit, may also qualify for the Child Disability Benefit, which is an amount available under the Canada Child Tax Benefit. Applicants who work from their homes may also qualify for the Working Income Tax Benefit disability supplement.

How to Determine the Disability Tax Credit Eligibility?

Determining if you are eligible for the DTC comes down to a few different factors. First, you must find out if your condition is within the eligibility criteria. Second, you must find out whether your condition is severe enough to qualify. To determine if you qualify for the DTC, see if your condition falls under the following criteria: The three main categories that are used to determine eligibility for DTC are:

• Physical Impairments
• Mental Illness and Psychological Impairments
• Neurological impairments

It is imperative to note that just because your condition is considered eligible for DTC, it does not mean that you will receive the tax refund. Eligibility is based on how severe your impairment is and its effects on your activities of daily living. To be considered eligible for DTC, your impairment must also fall under one of the following:

Markedly Restricted

You are unable to perform the activity, or it takes at least three times longer than someone of similar age without the impairment, even with the use of appropriate therapy, medication, and devices.  This restriction is present all or almost all of the time, generally at least 90%. Furthermore, the restriction has lasted or is expected to last for a continuous period of at least 12 months.

Life-Sustaining Therapy

If you spend 14 hours each week or more on life-sustaining therapies to support vital functions such as dialysis, insulin therapy, oxygen therapy, and chest physiotherapy, and require these therapies at least 2 times per week, you may be eligible for the Disability Tax Credit (DTC) under life-sustaining therapy. To learn more, read our Disability Tax Credit Eligibility article.

Manitoba’s Primary Caregiver Tax Credit

Manitobans who are the primary caregivers for people with disabilities may qualify for a tax credit. A caregiver is eligible for this credit if:

• They have been providing voluntary care to a person with a disability for longer than 3 months.
• The care recipient is living in a private home.
• The caregiver is the only person providing help to a recipient. Additionally, the caregiver must meet the care level equivalent to Home Care Level 2, which requires at least 3 of the 4 following categories:
  • Supervising or assisting with routine activities including transportation, shopping, laundry, or meal preparation.
  • Supervising or assisting with personal care including feeding, bathing, dressing, hygiene, grooming, mobility, toileting, or medication.
  • Arranging for community access, system navigation, and support such as counseling, support groups, medical follow-ups, and recreational activities.
  • Providing sustained, regular advice, emotional support, or decision-making.

The maximum tax credit available to primary caregivers is $1,400 a year. The province of Manitoba offers many ways to ease the burden of living with a disability. There is no cost to applying so if you feel as though you may qualify there is no harm in applying. The money you save could make your life easier and allow you to live more comfortably. How Is The Disability Tax Credit Calculated? Now that you understand eligibility and believe you may be eligible for the tax refund, you are most likely curious about how much you can receive. This section will break down how the DTC is calculated; however, if you would like an estimation right away, we created a Disability Tax Credit Calculator where you can quickly and very accurately estimate your expected refunds. Here is a breakdown of how the DTC refund is calculated: The DTC refund amount consists of a Federal amount and a Provincial amount The Federal amount is the same across Canada, and the Provincial amount changes from Province to Province. The Federal and Provincial amounts consist of a ‘Base Amount’ and, if applicable, a ‘Supplemental Amount.’ The Supplemental Amount is provided to eligible individuals who are under 18 years of age at the end of the tax year. We’ll further explain these components below:

• Base Amount: The Federal base amount is around 15% of the base amount ($9,428 as of 2023), equating to about $1,414.2. The Provincial base amount is around 10.8% of the disability amount for that tax year ($6,180 as of 2023), equating to about $667.44.
• Supplemental Amount: The Federal supplemental portion is 15% of the base amount ($5,500 as of 2023), equating to about $825. The Provincial supplemental portion is around 10.8% of the disability amount for that tax year ($3,605 as of 2023), equating to about $389.34.

Therefore, the base amount from both Federal and Provincial sources is around $2,081.64 and the supplemental amount from both Federal and Provincial sources is approximately $1,214.34. Based on the calculation example above, an adult in Manitoba would receive approximately $2,081.6 for the year 2023. When combining the “Base Amount” and “Supplemental Amount,” an eligible individual under 18 in Manitoba would receive $3,295.94 in Disability Tax Credits for the 2023 tax year. Here are the Federal and Provincial base and supplemental amounts for the past 10 years:

Federal Base amount and Supplement amount table for last 10 Years

Year	Federal Base Amount	Federal Supplement amount
2013	$7,697	$4,490
2014	$7,766	$4,530
2015	$7,899	$4,607
2016	$8,001	$4,667
2017	$8,113	$4,733
2018	$8,235	$4,804
2019	$8,416	$4,909
2020	$8,576	$5,003
2021	$8,662	$5,053
2022	$8,870	$5,174
2023	$9,428	$5,500

Manitoba Provincial Base and Supplement amount table for the last 10 Years

Year	Provincial Base Amount	Provincial Supplement amount
2013	$6,180	$3,605
2014	$6,180	$3,605
2015	$6,180	$3,605
2016	$6,180	$3,605
2017	$6,180	$3,605
2018	$6,180	$3,605
2019	$6,180	$3,605
2020	$6,180	$3,605
2021	$6,180	$3,605
2022	$6,180	$3,605
2023	$6,180	$3,605

How to Apply for the Disability Tax Credit

So, now that you know how much you could earn from the DTC, let’s discuss how to apply. The good news is that applying for the DTC is easy, straightforward, and free. Anyone can apply and there is no drawback or penalty for multiple tries. HOWEVER, getting your DTC application approved will take more than simply applying for it and wishing for the best. You will have to build a strong case, providing as much information as possible about your condition and how it negatively impacts your life. There are different methods for applying, each providing different results, so review your options and determine which is best for you.

Applying for the Disability Tax Credit Independently

To apply for the DTC, all you must do is take the following steps:

• Download the T2201 Form from the CRA’s website
• Print the T2201 and take it to your healthcare practitioner to fill out and sign.
• Send the signed T2201 by mail to the CRA’s processing centre.

While applying for the DTC independently is the most cost-effective method, it does not give you the best chance for approval. Drawbacks to applying independently include a lack of eligibility knowledge and a need to know how to maximize your applicable credits and benefits. Because of this, it is best to enlist the help of a specialized DTC firm like Disability Credit Canada, as we have a thorough understanding of the DTC application process, eligibility requirements, and more.

Common Reasons for Denial of the Disability Tax Credit

Before applying it is essential to note that a large percentage of applicants get denied so it is important to understand some of the common reasons people are denied for the DTC if you want to avoid making the same mistakes. As previously mentioned, applying for the DTC is a simple process, but being approved is not. The application process for severe or more visible impairments is rather simple, but the process becomes much more challenging for less visible or hard-to-diagnose impairments. Throughout our many years of dealing with DTC cases, we have come across many different reasons applications are denied. Some are straightforward, while others can be complex. Here are some of the more common reasons:

• Missing or incomplete information on the T2201 form
• Lack of knowledge of DTC eligibility criteria
• Inconsistent medical diagnosis
• Impairment didn’t qualify Duration of impairment too short
• Cumulative effects of impairment not included
• Lack of supporting medical documents to prove the severity of your condition

What are Other Disability Programs Available for Manitoba?

The Disability Tax Credit is a federal program and it’s important to know that if you were found eligible for the DTC it will not affect other Federal or Provincial programs. If you’re in Manitoba and living with an impairment, there are other programs created to assist you. It is advantageous to learn about your options to get the assistance you or someone you are caring for need.  Some of the other disability programs available to Manitobans are: Community Living disABILITY Services (CLDS) aids qualified adults with intellectual disabilities residing in Manitoba to lead fulfilling lives within their local communities. CLDS provides a variety of services and assistance to both individuals and their families, including residential accommodations, day programs, support for those living at home with family, clinical services, and crisis intervention. The Manitoba Supports for Persons with Disabilities (MPSD) program is an income support program for persons with severe and prolonged disabilities. MPSD provides enhanced financial and other benefits tailored to the unique needs of persons with disabilities.

In Conclusion

We’ve developed this guide to educate Manitobans about the Disability Tax Credit and its assistance for disabled Canadians in the workforce, covering expenses related to their impairments. Applying for the credit is free, and there are no repercussions for submitting multiple applications. Disability Credit Canada has aided numerous Canadians in qualifying for and optimizing the benefits of the Disability Tax Credit. Our committed and knowledgeable team ensures the successful completion of every application we handle. We offer complimentary assessments and operate on a NO WIN – NO FEE basis, meaning we only receive payment if you do, incentivizing us to secure the maximum refund for you! For the highest chance of approval for the Disability Tax Credit, contact us today at 1-844-800-6020.

Call us today for help with your Disability Tax Credit