Disability Tax Credit
Get back taxes you never should have paid!
More than 3 million Canadians have a disability and they depend on someone for support. If you are a parent or a grandparent, brother, sister, uncle, aunt, niece or nephew supporting a person with a disability you may be entitled to a substantial refund from the federal government. Many caregivers are unaware that they can recover taxes they never should have paid. The Disability Tax Credit is a non-refundable tax credit that will reduce the amount of income tax you have to pay and it may produce a tax refund for past taxation years.
Parents and caregivers of people with a disability can claim past income tax credits for up to ten years. People with disabilities or their caregivers can have their income tax returns reassessed back up to ten years.
Caregivers have received refunds of $12,000, $17,000, $51,000 or more. Thousands of Canadian families, who care for a person with a disability, may be eligible to receive thousands of dollars in refunds from income tax they have already paid.
Since 1993 LifeTRUST Planning has been helping families of a person with a disability recover taxes they never should have paid. As the first organization in Canada to help families recover taxes they never should have paid our record speaks for itself.
The benefits of Qualifying for the Disability Tax Credits (DTC)
Recover taxes the caregiver never should have paid
Reduce the amount of taxes the caregiver has to pay
Family caregiver amount
Medical expense tax credit
The Registered Disability Savings Plan
The tax free rollover of an RRSP or RRIF
The disabled survivor benefit for certain pension plans i.e. OMERS, Ontario Teacher’s Pension Plan
Parents and caregivers of people with a disability can claim past income tax credits for up to ten years. People with disabilities and their caregivers can have their income tax returns reassessed back up to ten years. The 2004 federal budget restricted back filing after Dec. 31st 2004 to ten years. People with disabilities or their caregivers who have never claimed the Disability Tax Credit [DTC] should claim it now. Some claimant families have received refunds of $12,000. $17,000, $51,000, or more. Thousands of Canadian families, who care for a person with a disability, may be eligible to receive thousands of dollars in refunds from income tax they have already paid.
WHO CAN BENEFIT?
More than 3 million Canadians have a disability and depend on someone for support. A caregiver may be a senior caring for a disabled spouse or a common law partner, a child caring for a disabled parent, or grandchild, grandparent, brother, sister, uncle, aunt, niece or nephew. Any one of these caregivers is eligible to file or back file for this tax credit. However many of these people are unaware of the Disability Tax Credit’s existence? The tax credit is a non-refundable tax credit that reduces the amount of income tax payable and it may create a refund for past taxation years.
If an individual or someone they care for is over age 18 and has a mental or physical disability that is severe and prolonged they could have claimed Disability Tax Credit on their income tax return. If at anytime during the year they maintained a dwelling where the relative and their dependent lived, they may also be able to claim the Caregiver amount, and back file up to 10 years. If the family has never claimed the Disability Tax Credit they may back file to 2002. Parents who care for a disabled child under age 18 may claim a reduced Disability Tax Credit. Families with low or modest incomes may be eligible to receive the Child Disability Benefit.
OTHER BENEFITS OF THE DTC.
Qualifying for the DTC is the criteria to allow parents or relatives to establish a Registered Disability Savings Plan. It allows the individual or their caregiver to make claims for tax credits and deductions; such as education and tuition fees, attendant care, private nursing, aids to daily living, dental costs, prescription drugs, hearing aids, adapting a vehicle, travel expenses for medical treatment not locally available, therapy, group home fees, talking books, tutoring, renovations and many more.
In 2003 the federal government initiated a committee to explore issues relating to the Disability Tax Credit for persons with disabilities. The committee’s recommendations are included in their final report which can be viewed on their web site at www.disabilitytax.ca. Or you can visit the Canada Revenue Agency web site at www.cra.gc.ca. If you have never claimed the Disability Tax Credit, DO IT NOW!!. Don’t delay do it today, before you lose $1,000. It’s never too late.
Disability Tax Credit at a glance
The Government of Canada recognizes that living with a disability can have significant effects on the daily lives of individuals and their families. The Canada Revenue Agency (CRA) is committed to administering tax credits and benefits for persons with disabilities in a fair, transparent, and accessible way.
Building on this commitment, the CRA is publically releasing detailed statistics on the Disability Tax Credit (DTC) featuring data on the number of people claiming the DTC, amounts claimed, and applications accepted and rejected in the last six fiscal years. It’s important to note that eligibility is not based on a diagnosis, but rather on the effects of the impairment on the ability to perform the basic activities of daily living (as described in the Income Tax Act). In the 2016-2017 fiscal year, some 770,000 individuals claimed the DTC, representing more than $1.3 billion dollars in tax relief.
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T2201 Disability Tax Credit Certificate