Medical Conditions That Qualify For The Disability Tax Credit

Medical Conditions That Qualify For The Disability Tax Credit

Any Canadian, of any age, who has a significant health condition, may qualify for the Disability Tax Credit. BMD specializes in helping Canadians with health conditions to obtain credits that they are due. The Disability Tax Credit (DTC) can often bring over $25,000 to qualifying claimants. Disabled Canadians as well as those less affected, who have health conditions and are restricted in their daily abilities can benefit! Many Canadians with medical conditions qualify for this income tax benefit and are simply not aware that they do. BMD Services helps Canadians with Disabilities, as well as those with lesser restrictions obtain their tax benefits. These refunds are important to those who qualify as these can equal $25,000 in a lump sum, as well as $2,500 per year for current and future tax years.

Some common conditions that regularly qualify are:

  • Slowed Walking
    Knee/Hip Problems, Osteoarthritis, Poor Circulation, Foot Disorders
  • Digestion Disorders
    Inflammatory Bowel Disorder, Crohn’s/Colitis, Incontinence, Prostate
  • Limited Upper Body Mobility
    Weak/Shaky Hands or Arms, Back/Neck Problems
  • Breathing Disorders
    COPD, Emphysema, Tuberculosis, Chronic Asthma, Sleep Apnea
  • Hearing Impaired
    Hearing Aids, Need of Hearing Aids, Poor Hearing
  • Cognitive Issues
    Memory Loss, Confusion, Alzheimer’s, Dementia, Depression, ADHD

See our list of other common medical conditions that qualify for the DTC.

“Disability” Explained

It is important for health affected Canadians to be aware that there are two levels of qualifying “disability” categories within the Disability Tax Credit. The first and most obvious category is the “Disabled” group. Under the provisions of the DTC, the “Disabled” group is defined as “Being unable to perform a basic activity of daily living”. The second and least obvious category is the “Slowed” group. Under the provisions of the DTC, the “Slowed” group is defined as “Taking an inordinate (significant) amount of time to perform a basic activity of daily living”. Hence, Canadians who are either disabled or slowed can qualify equally for the DTC, receiving the same level of benefits.

BMD Services estimates that most Canadians with medical conditions that slow their daily functioning who might qualify for the DTC, will never look into the DTC and not apply. This is because they and/or their tax advisor, as well as their medical practitioner, and in many cases the Tax Department themselves, perceive the DTC is a program for only for severely disabled persons. Another reason to call us now! We provide you with a personal free, quick and easy, no obligation consultation to determine if you qualify for the Disability Tax Credit (as well as associated information on other programs if applicable).

Disabled people as well as Slowed people can qualify for the Disability Tax Credit!

Don’t Worry, You Won’t Be Labelled As Disabled

Another important thing anyone considering the Disability Tax Credit should be aware of is that all claims and benefits within this program remain independent and confidential within Canada Revenue Agency (CRA). Only you, your medical practitioner, CRA, and anyone you have authorized, would be aware of your DTC claim and associated acceptance into the program benefits. Some of BMD’s previous clients expressed that they were worried about applying for the DTC for some of these reasons, then after being provided with this information, they felt at ease and agreed to apply. It is important for DTC claimants to know that employers, family, friends, other health benefit program administrators, as well as any other entity that would not normally have access to your private income tax information, would not have access to any of your Disability Tax Credit benefits information. CRA is bound by very strict Federal Privacy Act guidelines that prohibit them from disclosing your private income tax information with any other source, without your express written permission.

Being approved for the DTC does not in any way formally designate or label a person as disabled. More precisely, being approved simply allows a person to qualify for an annual income tax reduction. In other words, being approved for the DTC is an income tax standing, not a medical standing. No other organization considers DTC approval as a formal medical classification in any way.

DTC Benefits Will Not Impact You Negatively in Any Way

Because the DTC is simply an income tax reduction credit, there are no associated negative financial impacts to claimants when receiving such credits. The DTC is income tax that has been reduced, so any payments of refunds to claimants would not be considered as income (other than marginal interest that is paid to claimants at the time of refunds for past years). Also, because DTC credit refunds are not considered income, refund credits do not generally threaten claimants other income or health benefit sources that are affected by outside income sources and amounts.*

*Claimants should check directly with their income benefits provider regarding benefits implications when receiving lump sum income tax credit refunds.