Federal tax credits and deductions offered for people with special needs

According to the Government of Canada’s Office of Disability Issues, more than 3 million Canadians have a disability and depend on someone for support. The definition of a caregiver according to the federal government is “anyone who supports a person who is dependent on the taxpayer by reason of a mental or physical infirmity” While caregivers are eligible to file or back file for the Disability Tax Credit (DTC) many people are unaware of it’s existence. The DTC is a non-refundable tax credit that reduces the amount of federal income tax payable and may even generate a refund for past taxation years.

Benefits of claiming the Disability Tax Credit
Caregivers of individuals aged 18 and over or people who have severe and prolonged cognitive or physical disabilities are eligible to claim the Disability Tax Credit on their tax return. If at anytime during the tax year the caregiver maintained a residence where their dependent lived, the caregiver may also be able to claim the Caregiver amount on their tax return and back file this up to ten years.(relatives may only back file up to the year 2000)  Parents who care for a child under age 18 may claim a reduced Disability Tax Credit. Families with low or modest incomes may also be eligible to receive the Child Disability Benefit.

Other Benefits of claiming the Disabiliy Tax Credit
Qualifying for the DTC is the yardstick that allows the individual or their caregiver to make a number of claims for medical expenses and deductions; such as education and tuition fees, attendant care, private nursing, daily living aids, dental bills, prescription drugs, hearing aids, the adaptation of a vehicle, travel expenses for medical treatment not locally available, therapy, group home fees, talking books, tutoring, renovations and ,many more.

Finally while federal tax legislation is applicable throughout Canada, each province and territory has its own financial supports and assets limits for people with disabilities. For more information on the specific social benefits legislation concerning financial support applicable to your province, visit your governments Social Benefits web site. The selection was taken from Mr. Dowson’s article in “Exceptional Family” Magazine spring 2006

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OR CALL OUR DISABILITY TAX SPECIALIST AT 1 877- DTC (382) 1986