It can be very stressful trying to figure out how you are going to pay the bills when you are out of work. The stack gets bigger and bigger every month; and it seems relief is never on its way. The costs of living and the expenses that are associated with it seem to be even worse when you are out of work due to a disability. There are numerous disabilities that can prevent an individual from working. The government has recognized this and offers a Saskatchewan Disability Tax Credit to help lessen these monetary burdens.
The Saskatchewan Disability Tax Credit is a non-refundable tax credit that is given to taxpayers to greatly reduce the amount of income tax the disabled individual has to pay. This may also apply to a person who is financially caring for a disabled individual.
Eligibility for the Saskatchewan Disability Tax Credit
An individual must be meet certain criteria in order to be eligible for the Saskatchewan Disability Tax Credit. There are three basic conditions an individual must have in order to qualify for this credit.
- An individual must have a severe impairment in a physical state. They may also have a severe impairment in a mental state.
- This impairment must be expected to last continuously for a duration that exceeds 12 months.
- A licensed doctor or qualified practitioner must attest to any individual’s impairment. This professional will be required to complete a section of the Disability Tax Credit Certificate, detailing the prolonged impairment and how it effects day-to-day activities.
Some of these day-to-day activities may include, but are not limited, to: walking, hearing, speaking, eating, dressing, using the bathroom, and seeing. If you have a severe impairment in any of these categories there is a good chance you may qualify for the Saskatchewan Disability Tax Credit. If you are looking to apply on behalf of your child, please read our child disability benefits guide.
There are a numerous amount of mental impairments that an individual may have that will also qualify them for the Saskatchewan Disability Tax Credit. Among these may include, but are not limited to:
- Manic Depression
- ADD (Attention Deficit Disorder)
If you believe you qualify for the Saskatchewan Disability Tax Credit; you may obtain Form T2201 given by the Canadian Revenue Agency. Once the first section of this form is filled out, you may bring it to your licensed doctor to complete the second section of the form. When the form is filled out in its entirety; you may submit it to the Canadian Revenue Agency for review. They will contact you regarding the approval or denial of your tax credit; and any benefits that may go along with that.
Benefits of the Saskatchewan Disability Tax Credit
The benefits of the Saskatchewan Disability Tax Credit vary according to each individual’s situation. There are deciding factors such as income, number of years in the workforce, and previously filed tax amounts. This tax credit can save applicants anywhere from $1,600 all the way up to $40,000! When an individual qualifies for the Saskatchewan Disability Tax Credit, they may also qualify for other benefits.
- Registered Disability Savings Plan: This is designed to help provide and protect individuals with future financial security. Contributions are matched by the government and are not tax-deductible.
- Savings Bonds: If your income is low and you make contributions to the Registered Disability Savings Plan; you may qualify for Canadian Disability Savings Bonds, which can accumulate up to a maximum of $20,000.
- Savings Grants: This grant will allow individuals an amount up to $3,500 a year; which may not exceed $70,000 in a lifetime. It will match contributions into the Registered Disability Act by up to 300%.
The Saskatchewan Disability Tax Credit is a generous way of helping out those with severe impairments. It can be very difficult to pay your bills and perform day-to-day activities when you are disabled. If you feel you qualify for any or all of these benefits; your first step is to apply for the Saskatchewan Disability Tax Credit.