Nova Scotia Disability Tax Credit Calculation, Eligibility and Application

Living with a medical disability can be costly, but fortunately, the province of Nova Scotia offers services and programs to ease the monetary burden on the disabled. Disability tax credits, available for both adults and children, provide a non-refundable credit to taxpayers with disabilities, reducing their income tax obligations. Additionally, we’ve developed a specific Nova Scotia Disability Tax Credit guide to provide insight into the DTC program and assist Nova Scotia residents with impairments in navigating the application process. 

Updated and revised in February 2024, this Nova Scotia Disability Tax Credit guide reflects changes to the Disability Tax Credit application form, refund amounts, and any other questions you may have. Specifically curated for Nova Scotians, this guide aims to comprehensively address all aspects of how the Disability Tax Credit (DTC) can help alleviate the financial strain of living with disabilities. For Nova Scotians seeking to apply for the DTC for themselves or on behalf of someone they care for, we provide comprehensive guidance on the application process specific to the province.

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.

Who is Eligible for Disability Tax Credit?

There are a few conditions that need to be met before you can qualify for tax credits, to be eligible to receive any refunds in the form of tax credits:

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

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 Calculate the Disability Tax Credit in Nova Scotia

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.

2. 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 8.79% of the disability amount for that tax year ($7,341 as of 2023), equating to about $645.2.

          Therefore, the base amount from both Federal and Provincial sources is around  $2,059.47

        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 8.79% of the disability amount for that tax year ($3,449 as of 2023), equating to about $303.16

        Therefore, the supplemental amount from both Federal and Provincial sources is around $1,128.16

Based on the calculation example above, an adult in Nova Scotia would receive approximately $2,059.47 for the year 2023. When combining the “Base Amount” and “Supplemental Amount,” an eligible individual under 18 in Nova Scotia would receive $3,187.63 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

Nova Scotia Provincial Base and Supplement amount table for the last 10 Years

Caregiver Tax Credit

In Nova Scotia if you live in a house or dwelling where you support a dependent with a disability you may be able to claim a maximum amount of $4,402 for each dependent so long as the following stipulations are met:

• The dependent must be your spouse, common-law partner, child, niece, nephew, brother, sister, aunt, uncle, parent, grandparent, or grandchild.
• You and your dependent must live in the province of Nova Scotia.
• You and your dependent must be Canadian Citizens or permanent residents.
• The dependent must be 19 years of age or older.
• The dependent must have a net income of $30,797 or less if single, or a total net household income of $45,797 or less, if married or common-law.
• Have been assessed by a Nova Scotia Health Authority care coordinator as having a high level of impairment of disability requiring significant care over time.

If you support a dependent with another person, then you can split the claim amount for that dependent, although, the total of the two claims cannot be more than the maximum amount permitted for that dependent. Additionally, a dependent can transfer their credit to you if one of the following situations applies:

• You claimed an amount for your dependent or could have done so.
• The dependent must be your spouse, common-law partner, child, niece, nephew, brother, sister, aunt, uncle, parent, grandparent, or grandchild, and you claimed an amount for that dependent.
• The dependent had been 18 years old or older in 2012.
• The dependent has no income.

Nova Scotia offers a great deal of money to those that it deems disabled, so if you think you qualify then be sure to do so as there is no cost to applying.

The money provided by disability tax credits is enough to ensure that persons with disabilities and those who may need to support them can live comfortable, normal lives without needing to worry about the burden that their disability puts on their earning power.

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 simple:

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 Nova Scotia?

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 Nova Scotia 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 Nova Scotia residents are:

The Disability Support Program (DSP) Policy provides support to individuals with intellectual/physical disabilities and/or long-term mental illness. The policy includes information on the program, financial eligibility, and basic and special needs.

Direct Family Support for Children (DFSC) and Enhanced Family Support for Children (EFSC) provide funding to enable families to support their child with a disability at home. DFSC and EFSC provide funding for the purchase of respite services to assist with scheduled breaks for family caregivers.  An enhanced funding component may be available for children and families who meet EFSC eligibility criteria.

Flex provides individualized funding to participants living at home with their families or who live independently with support from their families or personal support networks.

In Conclusion

At Disability Credit Canada, we take immense pride in our mission to assist disabled Canadians in claiming their rightful benefits, including the Canada Pension Plan (CPP) Disability Benefits, Disability Tax Credit, and Long-Term Disability Benefits. We have crafted this comprehensive guide to inform Nova Scotia residents about the Disability Tax Credit and how it can provide vital financial support to those still actively participating in the workforce, helping to cover expenses related to their impairments.

Applying for the Disability Tax Credit is a completely free process, and there are no consequences for applying multiple times. Disability Credit Canada has successfully guided thousands of Canadians in qualifying for and maximizing the benefits of this invaluable tax credit. Our dedicated and knowledgeable team is committed to ensuring the successful completion of every application we handle.

We provide free assessments and operate on a NO WIN – NO FEE basis, meaning we only receive payment if you do. This gives us the incentive to secure the maximum refund for you, ensuring that you receive the full financial support you are entitled to.

For the best chance of approval for the Disability Tax Credit, we encourage you to call us today at 1-844-800-6020. Additionally, be sure to check our other Resources for more comprehensive information on the Disability Tax Credit and how it can benefit you or your loved ones.

1. Disability Tax Credit Provincial Resources
2. Disability Tax Credit for Arthritis Sufferers
3. Disability Tax Credit for ADHD or ADD
4. Disability Tax Credit for Anxiety Disorders

We can help you receive the most out of your Disability Tax Credit. Call us today!