DTC
I would like assistance in obtaining the Disability Tax Credit (DTC)
The Disability Tax Credit (DTC) allows me to reduce the amount of tax I have to pay, whether for myself or for a family member. However, it offers much more than just a reduction in taxes.
The possibility of opening a Registered Disability Savings Plan (RDSP)
Access to the Canada Disability Benefit (CDB)
If applicable, access to the Child Disability Benefit (CDB)
The first appointment with Finandicap takes place online via Microsoft Teams or by phone, according to your preference. This initial consultation is always free and without obligation, allowing you to ask any questions you may have in complete confidence. Our team is here to support you and provide personalized advice in the comfort of your home, making it easier to access our specialized services.
To make access easier for you, Finandicap has developed a guide for obtaining the Disability Tax Credit (DTC).
Three steps are suggested:
1- Identify your daily living limitations
2- Complete the T2201 form with a healthcare professional
3- Submit your application to the Canada Revenue Agency
Questions & Answers
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1. Why obtain the Disability Tax Credit (DTC)?
A significant tax credit:
The Disability Tax Credit (DTC) is a non-refundable tax credit designed to help offset the additional costs associated with a physical or mental disability. It allows people with disabilities or their supporting family members to reduce the amount of income tax they have to pay. More importantly, being eligible for the DTC also qualifies the individual for many other federal programs.
Eligibility for an RDSP :
The Disability Tax Credit (DTC) is an eligibility requirement for opening a Registered Disability Savings Plan (RDSP). The RDSP is a generous financial tool that allows you to receive up to $90,000 in government grants and bonds. Opening an RDSP enables you to save for the long term. This financial tool is advantageous for all individuals living with a disability, whether or not you are currently able to save.
I would like assistance in obtaining the Disability Tax Credit (DTC)
Eligibility for the CDB :
The Disability Tax Credit (DTC) will be used as an eligibility criterion for the new Canada Disability Benefit (CDB). This government benefit aims to reduce poverty among low-income Canadians with disabilities aged 18 to 64. It will provide direct financial assistance of up to $2,400 per year. Payments to eligible recipients will begin in July 2025, following the completion of the regulatory process and consultations with persons with disabilities.
Feel free to book an appointment to get more information at no cost.
2. How do I obtain the Disability Tax Credit (DTC)?
A healthcare professional must complete the T2201 form, certifying a severe and prolonged impairment in physical or mental functions. The impairment must result in marked restrictions in one category of activities of daily living or significant restrictions in at least two categories.
The eligibility criteria were expanded in the 2021 federal budget to include more disability situations. If you were previously denied the Disability Tax Credit (DTC), do not hesitate to reapply. Attached is an article by Mr. Guillaume Parent on this topic: Living with an invisible disability? The Canada Revenue Agency wants to make your life easier!
3. What disabilities are eligible?
It is not the disability, diagnosis, or illness itself that makes you eligible for the Disability Tax Credit (DTC), but rather the prolonged effect of the impairment on your daily life that determines your eligibility. Many people are unaware that conditions such as type 1 diabetes, autism spectrum disorder, or ADHD can make a person eligible for the DTC.
If you still have doubts about your eligibility, or if you simply want more information, please don’t hesitate to contact us.
4. If I or my child is living with a disability, should I apply for the Disability Tax Credit (DTC) even if I don’t pay any taxes?
Yes!!! Regardless of your financial situation, whether you pay taxes or not, it is essential to obtain this credit. It opens the door to several other programs and gives you the right to open an RDSP. The RDSP helps secure your financial future or that of your child.
Breaking taboos
The DTC makes a person “invalid” FALSE
The DTC does not invalidate a person in any way. It simply recognizes an additional difficulty in daily life and provides financial compensation. This compensation helps cover the extra costs associated with a disability, through a tax credit, an RDSP, or a benefit.
The Disability Tax Credit (DTC) remains surrounded by taboos and misunderstandings, which hinder access to this essential support. Many people hesitate to talk about it or are unaware that they might be eligible, even for less visible conditions. This section aims to demystify the DTC, break the silence surrounding it, and remind readers that this credit can open the door to other important programs for people with disabilities and their loved ones.
I will be required to disclose my condition, my disability. FALSE
There is no label or obligation to disclose. No one can access your file or require you to provide proof that you are a DTC recipient.
Obtaining the DTC will make me lose custody of my children because I will be considered disabled. FALSE
Discrimination based on disability is prohibited. Obtaining the Disability Tax Credit (DTC) cannot be used as a factor against your custody of your children. If you have a condition that prevents you from assuming custody, receiving the DTC will not be used against you.
Our commitment to you
At Finandicap, we are happy to assist you in preparing your application for the DTC. We have developed resources in collaboration with our partners that can help you during your interactions with healthcare professionals.
Feel free to book an appointment to benefit from our assistance at no cost.