What Is The Disability Tax Credit?
The Disability Tax Credit (DTC) is an income tax credit that reduces annual income tax payable for those who qualify. Many people who qualify for the Disability Tax Credit will also receive a refund from previous tax paid in a lump sum payment of $25,000 or more.
Former CRA Tax Expert Barry Ho helps Canadians claim their full Disability Tax Credit Refund. Contact Barry Online or call 1-855-546-9199 for a Free Consultation.
Disability Tax Credit in a Snapshot
- Canada Revenue Agency (CRA) allows individuals to claim this amount on their current income tax return, as well as up to ten years back on previous returns (for years the qualifying ailment(s) existed).
- Claimants annual income tax payable amounts are reduced by as much $2,500 with this credit. By claiming up to ten years back, claimants can receive a lump sum tax credit refund payment of $25,000 or more, and can continue to benefit from the credit for future years.
- Claimants need not be earning an income in order to benefit from the credit.
- This credit is substantial and in some cases life changing for the disabled and those with lesser health ailments, and as such, efforts should be made to inform patients that they qualify.
Many Canadians who qualify for the Disability Tax Credit face many challenges when considering whether to apply. Many who do qualify for the DTC:
- Are not aware that the credit exists.
- Under rate their health condition, and mistakenly conclude that their health condition is not severe enough to qualify for the DTC.
- Have a tax preparer that is not adequately aware of the credit or is of the incorrect opinion that their client does not qualify for the credit.
- Are under the care of a medical practitioner who is not adequately aware of requirements of the DTC, and/or how to properly complete the certification forms on behalf of their patient.
Similar challenges facing those who qualify have been recognized by organizations outside the government, such as the Technical Advisory Committee on Tax Measures for Persons with Disabilities, who made recommendations to the government in their “Disability Tax Fairness” report, “to clarify the legislative and interpretive intent of the disability tax credit and to improve on its administration“1. Also recognized by a major Canadian newspaper, in an article entitled “Tax credit form for disabilities not MD’s friend”, which stated “What shocked me in the last two weeks was hearing from people who obviously qualified for the DTC, but whose doctors have told them things like “you are not disabled enough,” and refused to fill out the form so that these patients could get proper tax treatment”2. The Multiple Sclerosis Society of Canada has also voiced concerns over the DTC access to MS sufferers. On their website they state, “The Multiple Sclerosis Society of Canada is concerned that currently many people with MS who should qualify for the disability tax credit are being denied because of the unpredictable and episodic nature of MS and because the criteria to qualify have become more strict. We are working to have changes made to the DTC, however, right now this is how the system works.”3 Clearly, there are significant obstacles facing anyone attempting to claim the DTC, and as a result many people are unsuccessful with their DTC claims unless they get expert help.
1 Technical Advisory Committee on Tax Measures for Persons with Disabilities (report),”Disability Tax Fairness”, December, 2004.
2 Winnipeg Free Press Print Edition (article), “Tax credit form for disabilities not MD’s friend”, June 19, 2009.
3 Multiple Sclerosis Society of Canada Website, “Involved/Advocacy/dtc.htm” page, March 02, 2012.
Too many Canadians aren’t getting their money
Don’t feel left alone. If you are wondering what this is all about and whether you might qualify, contact us now to get the help you need. We are passionate about helping Canadians with health problems get the money that they are due!
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 claimant’s 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.
How we can help
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). BMDs President is a former Internal Auditor within Canada’s tax department, and utilizes his knowledge, experience, and expertise to successfully obtain maximum benefits for Canadians. BMD is recommended by professionals and support organizations, and processes an exclusive number of claims per year, where each claim is personally reviewed by management ensuring that claimants receive maximum benefits. Unlike large volume services, we do not hire processing agents with little or no professional income tax health benefit experience to mass process claims. And, unlike many small volume services, we do not have company owners and/or managers who have little or no professional income tax health benefit experience. So, call us now to get the best service from a company that has the credentials to do the job right. It’s your money and you deserve the best!