New Brunswick Disability Tax Credit Calculation, Eligibility and Application

April 19, 2024 by dccinc

Having a medical disability can result in extremely costly medical bills and other expenses. If you are unable to work due to your disability, your situation might be even more dire. Fortunately, the Canadian government offers financial assistance and other benefits to help individuals in such circumstances. This much-needed assistance could be the lifeline for getting you through the toughest times.

Our updated and revised February 2024 New Brunswick Disability Tax Credit guide reflects changes to the Disability Tax Credit application form, refund amounts, and any other inquiries you may have. Specifically curated for New Brunswick residents, this guide aims to comprehensively address all aspects of how the Disability Tax Credit (DTC) can alleviate the financial strain of living with disabilities.

However, you may not be aware that any government benefits you receive are considered income, and you are required to pay taxes on them. For a disabled person out of work, this can pose a significant struggle. Fortunately, upon approval, individuals may also qualify for a retroactive payment, which comes as a lump sum of up to $20,000 for adults and up to $40,000 for those under 18. This retroactive payment can cover up to 10 years if it’s demonstrated that the impairment has been present and federal taxes have been paid during those years.

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!

The Disability Tax Credit Explained – What is the DTC?

The Disability Tax Credit is a non-refundable federal tax credit created by the Canadian Government and Canada Revenue Agency to assist those with impairments who still work and pay taxes by providing them with a refund on the Federal income tax they pay. 

The Disability Tax Credit was created in 1988 when disabilities and mental illnesses became more recognized. The creation of DTC came about when the definition of a disability became broader and started covering numerous physical handicaps and mental illnesses instead of just those who use wheelchairs or are blind.

What are the Benefits of the New Brunswick Disability Tax Credit?

Tax credits are very valuable to receive because they directly reduce the amount of taxes you have to pay each year. You can lessen the expenses directly related to your disability with the –non-refundable New Brunswick Disability Tax Credit.

With the disability tax credit, you can receive credit for numerous expenses, including:

  • Attendance Care Services
  • Childcare Assistance
  • Education Costs or Tutoring Services
  • Hearing or Vision Assistance Devices
  • Job Coaching
  • Working Income Tax Benefits

The disability tax credit is not just limited to the disabled person. You can also receive credits for expenses incurred by:

You may also receive disability bonds and grants, and you’ll have the option to pay into the Registered Disability Savings plan. With this savings plan, your contribution will be partly matched by the government. These related programs can significantly increase the amount of assistance you receive from the government.

Are You Eligible for this Tax Credit?

You are eligible for a disability tax credit if you have severe and prolonged physical or mental impairments that have an impact on your daily activities. Your impairment must have lasted, or be expected to last at least 12 consecutive months. You must have a qualified practitioner certify that you have a severe and prolonged disability. You are also considered eligible if you need regular Life-Sustaining Therapy.

Below are some common medical disabilities that are covered:

  • Anxiety Disorders
  • Asperger’s Syndrome/Autism
  • Attention Deficit Disorder
  • Epilepsy
  • Fetal Alcohol Spectrum Disorders
  • Manic Depression
  • Type 1 and 2 Diabetes

In addition, to receive any kind of tax credits from the Canadian government you, your spouse, or your caregiver must have paid a certain minimum amount of taxes. You may still be eligible even if you currently don’t receive any taxable income.

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.

How to Calculate the Disability Tax Credit in New Brunswick

In the following section, we will explain how the DTC is calculated; however, to save you time, we created a Disability Tax Credit Calculator where you can easily and very accurately estimate your expected refunds.

To understand how the DTC refund is calculated, you need to understand a few “basic” terms:

  1. The DTC refund amount consists of two amounts: Federal amount and Provincial amount.
    • The Federal amount is the same across Canada.
    • The Provincial amount changes from Province to Province.
  1. 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:

  • 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 9.68% of the disability amount for that tax year ($9,309 as of 2023), equating to about $901.11.

        Supplemental Amount: 

  • 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 9.68% of the disability amount for that tax year ($5,431 as of 2023), equating to about $525.72.

       Therefore, the base amount from both Federal and Provincial sources is around $2,315.31, and the supplemental amount from both Federal and Provincial sources is approximately $1,350.72.

Based on the calculation example above, an adult in New Brunswick would receive approximately $3,034.3 for the year 2023. When combining the “Base Amount” and “Supplemental Amount,” an eligible individual under 18 in New Brunswick would receive $5,075.1 in Disability Tax Credits for the 2023 tax year.

Here are some examples of Disability Tax Credit refunds you could receive:

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

New Brunswick Provincial Base and Supplement amount table for the last 10 Years

Year Provincial Base Amount Provincial Supplement amount
2013 $7,600 $4,434
2014 $7,668 $4,473
2015 $7,799 $4,549
2016 $7,900 $4,609
2017 $8,011 $4,673
2018 $8,131 $4,743
2019 $8,310 $4,848
2020 $8,468 $4,940
2021 $8,552 $4,989
2022 $8,757 $5,109
2023 $9,309 $5,431

Step-by-Step Instructions on How to Apply for DTC

Over the years, the CRA has simplified the Disability Tax Credit application process to serve Canadians as initially intended. However, even after streamlining the application process, many applicants are still denied for a myriad of reasons.

It is important to note that just because applying for the DTC is easy, getting your DTC application approved is difficult.

Some disabilities are “visible” and “obvious” – these applications get approved pretty quickly. However, some disabilities, especially “invisible” mental disabilities, are much harder to prove. Most applicants will be denied, so getting approved for impairments that sit in a ‘grey area’ can be very difficult and require a lot of evidence gathering to help legitimize your claim.  

In essence, the Disability Tax Credit application process is straightforward:

  1. Download the T2201 Form from the CRA’s website.
  2. Print the T2201 and take it to your healthcare practitioner to fill out and sign.
  3. Send the signed T2201 by mail to a CRA’s processing centre or even online. 
  4. Wait about 1-3 months to hear back from the CRA if you were approved or not.

To fill out the T2201 form, you will need to be certified by a medical practitioner; however, not just any medical practitioner has the authority to do so. The CRA may also send a questionnaire to the medical practitioner who signed your form to clarify your impairments and the information submitted.

Some of the medical practitioners that can fill out the T2001 form are: 

  • Medical doctors can fill out the entirety of part B of the T2001 form.
  • Nurse practitioners can fill out the entirety of part B of the T2001 form.
  • Specialized doctors can fill out the section that best applies to their field, such as an optometrist filling out the vision impairment section, etc.

Here is a full list of medical practitioners authorized to fill out form T2201

Applying independently can be a quick and cost-effective process, but for more complex cases or cases that have been denied, you may want to seek out the help of a specialized DTC firm, like Disability Credit Canada

Common Reasons for DTC Denial

As mentioned above, applying for DTC is easy, but being approved is not a simple task. If you have a severe impairment, the application process can be straightforward, but if your disability is less visible or hard to diagnose, the process becomes much more challenging. 

Throughout our many years of experience, we have seen many reasons applications are denied. Some reasons are simple, while others can be complex. 

Some of the more common reasons for your application’s denial include: 

  • 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.

If your application is denied, you still have some options, such as:

  • Appeal the CRA’s decision by raising a formal objection. 
  • Submit a new T2201 form with further information about your impairments.
  • Use a different medical practitioner with more knowledge about DTC eligibility criteria. 
  • Call/write the CRA for further clarification regarding your application.

What are Other Disability Programs Available for New Brunswick?

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 New Brunswick 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 New Brunswicker residents are:

The Disability Support Program offers personalized and flexible disability supports to individuals with disabilities through the development of personalized support plans. This includes independent facilitation and the use of person-centered approaches for planning and designing disability supports.

The Housing Assistance for Persons with Disabilities Program provides financial aid for homeowners and landlords. Homeowners with a total household income at or below the applicable Housing Income Limit can receive assistance for accessibility modifications. Landlords undertaking accessibility work on rental properties or rooming houses intended for tenants with disabilities may also qualify for financial aid.

Don’t Dismiss Your Disability Tax Credit!

There’s no penalty for applying for the New Brunswick Disability Tax Credit. Speak to an expert for specific information and questions. Explore savings bonds and grants; you could miss out on $40,000 yearly!

Disability Credit Canada assists in claiming benefits like CPP Disability, Disability Tax Credit, and Long Term Disability. Our 2024 updated guide informs New Brunswicker residents about the Disability Tax Credit, aiding those in the workforce with financial assistance for impairments.

Applying for the credit is free, with no consequences for multiple attempts. We’ve helped thousands qualify and maximize benefits. With free assessments and NO WIN – NO FEE service, we’re motivated to secure your maximum refund! Call us at 1-844-800-6020 for the best chance of approval. Explore our resources for more on Disability Tax Credit.

Apply for the New Brunswick Disability Tax Credit with us today.

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