If you live in Canada and are currently out of work due to a debilitating injury, you are probably struggling with financial difficulties on top of physical problems. Fortunately, those facing financial hardship due to injury or other conditions can claim tax credits and deductions worth up to $35,000 under Disability Tax Credit. Before you or a loved one can apply, you need to find out if you’re eligible.
Do You Qualify for Disability Tax Credit?
Consider whether you meet the following criteria:
- Do You Suffer From a Severe Impairment in Physical Functions? – According to the government, a severe impairment can be defined in several ways. One being if essential activities take you an “inordinate amount of time.” In order to demonstrate this, you need to have a certified practitioner (doctor) submit documentation that an activity takes you at least three times longer to complete than what is considered normal.Another way to define this is by the necessity to undergo “life-sustaining therapy.” This means that therapy is necessary for your body to perform “vital” functions, including alleviating symptoms. In addition, therapy sessions must be attended at least 3 times per week, for an average of 14 hours.
- Is Your Impairment Prolonged? – In order to qualify for the tax credit, you must demonstrate that you suffer from a mental or physical impairment that is both severe and prolonged. A condition is considered prolonged if it “has lasted, or is expected to last for a continuous period of at least 12 months.”
If you meet both of these criteria, you are most likely eligible for the disability tax credit. The amount is defined according to the severity of your condition and the amount of taxes you would have paid if working. For more information about who qualifies for a disability tax credit, Contact Disability Credit Canada.