Other Canadian Disability Benefits Programs

Other Programs for Canadians With Disabilities

BMD Services recognizes the importance of successfully obtaining Canadian Disability Benefits “DTC approval” for clients. This is because not only are the DTC refund amounts at risk, so too are the benefits from other programs which base their benefits on the approval of the DTC. Three of the four Canadian Disability Benefits Programs listed below, will only approve payments to claimants if they have been approved for the DTC.  So select your DTC Specialist service provider wisely, because there can be a lot of money riding on your decision. The best way to ensure that the process is stress-free, easy, and optimally beneficial financially is to contact BMD Services. Please read below for more information on other benefits programs, and remember, contact us anytime if you have questions.

Registered Disability Savings Plan

Anyone who has been approved for the Disability Tax Credit can open a Government approved bank account, where additional funds are contributed by the Government. This account is called a Registered Disability Savings Plan (RDSP). The RDSP is a savings plan that can be established at any participating Canadian banking institution in the name of qualifying individuals or their representatives. It is intended as a long-term financial security savings plan of a person who is eligible for the Disability Tax Credit. Contributions to an RDSP are not tax deductible and can be made until the beneficiary turns 60. Funds that are withdrawn from the RDSP are not considered as taxable in income for the beneficiary when they are paid out of an RDSP. However, the Canada Disability Savings Grant (CDSG), Canada Disability Savings Bond (CDSB) and Investment Income (IE) earned in the plan are as taxable income for the beneficiary when paid out of the RDSP. A CDSG grant is an amount that the Government of Canada contributes to an RDSP. The Government will match grants of 300, 200, or 100 percent, depending on the beneficiary’s family income and the amount contributed. An RDSP can get a maximum of $3,500 in matching grants in one year, and up to $70,000 over the beneficiary’s lifetime. A grant can be paid into an RDSP on contributions made to the beneficiary’s RDSP until the beneficiary turns 50.  A CDSB bond is an amount paid by the Government of Canada directly into an RDSP. The Government will pay bonds of up to $1,000 a year to low-income Canadians with disabilities. No contributions have to be made to get the bond. The lifetime bond limit is $20,000. A bond can be paid into an RDSP until the beneficiary turns 50.

The Child Disability Benefit

Parents or caregivers of children approved for the Disability Tax Credit, can qualify for the Child Disability Benefit (CDB). The CDB is a tax-free benefit of up to $2,504 per year ($208.66 per month) for families whose child is under the age of 18 and has been approved for the DTC. The CDB is paid monthly to individuals who are eligible for the Canada Child Tax Benefit. Families who are eligible for the CCTB for a child will receive the CDB only if the child has been approved for the Disability Tax Credit. This Canadian Disability Benefits Program has helped many families afford better care and get better opportunities for their children.

The Working Income Tax Benefit

Individuals approved for the Disability Tax Credit can also qualify for the Working Income Tax Benefit (WITB). The WITB is a refundable tax credit for eligible working low‑income individuals and families. The WITB can be claimed on line 453 of current income returns if working income is over $3,000, and all the eligibility criteria are met. If eligible for the WITB and Disability Tax Credit, claimants may also be eligible for an additional supplement, called the Annual Disability Supplement for 2010. To be eligible working income must be over $1,150.

Canada Pension Plan Disability

Unlike the benefits above, the Canada Pension Plan Disability (CPPD) benefit is completely independent to the DTC. Being approved for the DTC does not in any way impact approval for the CPPD, nor does being approved for the CPPD impact approval for the DTC.  The CPPD is a monthly benefit payment made to qualifying individuals. A simple way to consider the CPPD is as early Canada Pension Plan (CPP) benefits, where individuals get their monthly CPP benefits in earlier years due to a health issue. The CPPD is available to people who contributed in recent years to the Canada Pension Plan, who became unable to work because of a disability. Its main purpose is to replace a portion of employment earnings. There are also benefits for children if at least one parent qualifies for the CPPD benefit. A CPPD benefit is not approved based on a particular disability or disease, but instead on the degree to which the medical condition and its treatment affect ability to work. This Canadian Disability Benefits Program has helped thousands of CPP recipients across the country.

More Information About These Benefits

Registered Disability Savings Plan
Child Disability Benefit
Working Income Tax Benefit
Canada Pension Plan Disability