The Disability Tax Credit
Posted by Gail | Filed under Taxes
Many people have been asking for more information about the disability tax credit. Last month Susan Mladenovich, CMA, who told us all about the new Registered Disability Savings Program, promised to give us a lowdown on the Disability Tax Credit. We’ll she’s a woman of her word. Email Susan directly at susan@accountingdepartment.ca or visit her website at www.accountingdepartment.ca. Here’s Susan…
There are two types of disability tax credits: non-refundable and refundable. Non-refundable tax credits can reduce tax owed to zero, but can’t be used to get a refund. A refundable credit can reduce your tax below zero and provide you with a refund.
The Disability Tax Credit (DTC) is a non-refundable tax credit, which means that someone who has low or no income will not benefit from this credit. However, the credit is transferable. So someone who qualifies could transfer all or a portion of the DTC to a spouse – legal and common law — who can then reduce his/her tax payable.
A lot of confusion comes from is the fact that the criteria for qualifying for the DTC is not precise. In 2001, the criteria were expanded to include life sustaining treatments requiring 14 hours per week or more. In 2005 the criteria were expanded further to include the time needed to calculate dosage for medications that require dosage on a daily basis.
To simplify the qualifying criteria, the condition must exist for longer than 12 months, and must markedly affect one or more of the basic functions of life, which include walking, eating, speaking, and self-care, or require a significant time commitment to manage life sustaining treatments.
You are eligible for the disability amount only if a qualified practitioner certifies that you have a severe and prolonged impairment and it’s effects on the form T2201, and the form is approved. There is a self-assessment questionnaire available on the T2201 form itself, so you can have a look-see to determine if you might qualify. Also on the form are definitions of “life sustaining treatment” along with other terms. If you believe you may qualify, proceed with an application. No harm is done if you don’t receive approval but tremendous benefits can be claimed if you are.
If you are approved for the DTC, it is usually retroactive and in place for several years. Once approved, claims for the past years are done through a T1 adjustment. In the event that the approved taxpayer does not require the entire credit, an adjustment must also be done for a spouse’s or parent’s return. These adjustments are processed manually by the tax centre so they may take some time, but they can result in large refunds.
Here are some examples for you:
- A man and his wife have never applied for the credit. Based on statements by the husband, their accountant recommended that they request their doctor to complete a T2201 form to apply for the DTC based on the wife’s deteriorating condition due to dementia/Alzheimers. The husband was reluctant due to the fact that his wife was in denial about the severity of her impairment. The application was approved retroactive to 2004. After adjustments, the couple received over $7,000 in refunds.
- A couple with young children have been challenged by the wife’s cancer diagnosis. Her condition requires ongoing travel for treatment at Princess Margaret Hospital. Her application was approved and her taxes were reduced by $1,700 in 2007. In addition, she applied for credits for travel and meals for the trips into Toronto for the treatment.
- A gentleman experienced a rapid decline after being diagnosed with pancreatic cancer, passing away within four months of the diagnosis. We processed a DTC application after his death and were able to adjust the return for the year he died. And a portion of the credit was transferred to his common law partner.
If you think you may qualify for the Disability Tax Credit, here are the steps you need to follow?
- Download the T2201 form from the CRA website. There is also a fillable version of the form.
- Have your doctor complete the form. Most family doctors are familiar it. They may charge you a small fee for completing the form.
- Send the form into the CRA and wait. And wait. And wait. Your application is reviewed to ensure that you meet the criteria.
Once you are approved, you will receive a letter indicating to which years any retroactive approval is available. The letter will also indicate how long you may claim the deduction without having to reapply.
For retroactive years, you can download an adjustment form or request that your tax preparer complete the form for you. Send the form in and wait. And wait. And wait! These adjustments often take 6 – 8 weeks to process.
If you or your spouse will be claiming this credit, you should update your withholding information at your workplace by completing a new TD1 form. This will reduce the tax withheld on each pay, putting the money into your hands sooner rather than waiting for your tax return to be assessed.
Remember, once you are eligible for the DTC, you are automatically qualified for the Registered Disability Savings Account including all the grants and bonds.
February 10, 2009 at 10:25 am
Don’t be concerned if your adjustment takes longer than 6 – 8 weeks. Although, it is a good idea to phone in 8 weeks to check that they received your form. When my husband was approved, they lost the form for 8 weeks. Once we called after the 8 weeks without hearing anything, it took another 4 months. But it was worth it in the end.
Also, Revenue Canada pays interest on the past years worth of overpayment. You have to claim the interest as income on the taxes for the year you received the overpayment refunds. It’s a lot of work, but you can receive hundreds or even thousands of dollars back that you have overpaid in the last (upto) ten years.
Don’t let your pride get in the way. My husband has a congenital disorder, and his previous tax preparer was too embarrassed or something to ask if he qualified. We found out about this from some guy in the grocery store parking lot that we stopped to ask about adult tricycles and where he got his adapted to suit people with problematic legs. I had to really poke at my husband to get him to apply.
The refund put a good dent in our mortgage.
Unfortunately, several friends of ours have been too proud to take the disabled label and are missing out. The government wants to give you money (or at least take less of it away from you). TAKE IT.
This isn’t just for people with mobility problems, if your medical condition takes extra time to care for, you may also qualify.
February 10, 2009 at 10:30 am
PS: the adjustment form is for all tax reassessments. So it doesn’t really look like it applies to the disability reassessment. We were told to just put “Reassess for disability tax credit” in part C for each of the years my husband was eligible to claim. Leave the amount of change part blank.
February 10, 2009 at 12:35 pm
The best time to get these documents into CRA is before tax season begins, especially if it encompasses years past.
February 10, 2009 at 1:33 pm
Thanks for the article, good to know…
My sister qualifies for ODSP (Ontario Disability Support Program – Income Support: financial help for people with disabilities. It can help pay for living expenses, like food and housing.). She no longer will qualify if her assets are over $5000. So, if my parents pass away and she inherits $5,000 she no long will have an income. A double edged sword, no?
My parents are working with someone to figure out the logistics of a will as it gets complicated!
As much as I hate to think about losing my parents, an extra concern is how I will manage my sister’s finances, living costs, housing, etc.
February 10, 2009 at 11:16 pm
Wink Wink,
your scenario of your parents passing away is EXACTLY what the new RDSP is addressing. most importantly, ODSP will not take assets in the RDSP into account for calculating benefits so your sister can have funds in the plan that will be there for her future. PLUS if she is over 18 she can get up to $4500 in grants and bonds. make sure you read the post I did about the RDSP & get on it before the extended deadline of March 2nd.
February 10, 2009 at 11:20 pm
as mentioned it can take months to process (especially at this time of year) but it is well worth it. If you are confused by the paperwork & can’t afford to pay an accountant or preparer, go to your MPP’s office & they will probably do it for you at no cost.
February 10, 2009 at 11:26 pm
ok just one more thing.
There is no use in being embarassed. Tax preparers & the government are required to maintain your privacy. Even mental disabilities qualify & those are the ones that can’t be seen by your preparer so don’t hide it. They can’t help you if they don’t know. In my opinion, if you don’t feel comfortable telling your preparer EVERYTHING that might be relevant, then you have the wrong preparer.
February 11, 2009 at 7:23 pm
Susan – thank you! I will pass this on to my parents and their financial advisor ASAP!
February 12, 2009 at 11:33 am
Wink Wink
I’m a father of a disabled son, a financial planner and very involved in a number of Community Living organizations.
Ensure your parents’ lawyer has expertise in setting up a Testamentary Trust aka. Henson Trust in their will for your brother.
This is the vehicle into which your brother’s inheritance can be put into and not be offside with ODSP.
I am not a lawyer, but I do know many family lawyers have no or little expertise in this particular area. In my mind it is important, if they screw it up, it’s too late if it goes uncorrected and the will is invoked.
Regarding DTC, professionals other than a MD can issue a DTC.
Qualified practitioners listed below can issue for certain impairments.
Medical doctors – all impairments
Optometrists – vision
Audiologists – hearing
Occupational therapists – walking, feeding, dressing, and the cumulative effect for these activities
Physiotherapists – walking
Psychologists – mental functions necessary for everyday life
Speech-language pathologists speaking.
Hope this helps.
February 12, 2009 at 11:40 am
Mike,
This is extremely useful information. We are about to set up our wills to provide for our child who has a physical disability. I would really welcome any other information you can share about wills and financial planning in such circumstances. Thanks so much.
February 12, 2009 at 12:39 pm
Hi Susan.
I’m sure you’ve thought about these things, but do you know or have an idea of who would Trustee the Trust? This is important as they are the ones who manage the money. You can have siblings, family or family friends do it, or a bank/trust company do it. Difficult decision since family/friends may not be competent enough, interested enough or even alive when the Trust is created(on the passing of both parents, usually). Banks and Trust Co’s will charge annual fees up to 5%, but there is expertise. They will want a minimum $ value to manage, so that is another hurdle.
I think it could be left up to the executor to choose, but that could be a task best left to yourselves to decide. Your lawyer may have some advice on this.
If you live in the GTA, specifically Mississauga, I may have some useful links etc.
Hope this helps
February 12, 2009 at 1:15 pm
Thanks Mike!
My sister falls into the autism spectrum – I’m not sure how it differs with these applications for a social/mental disability vs. a physical disability, but I’ve let my mom know about this blog posting.
My parents are in the GTA (North York) if you have any useful links.
Kind regards…
February 12, 2009 at 1:52 pm
Winkwink,
If your parents have not done so yet, I would recommend talking with and joining their local Community Living organization (Toronto Community Living – North York Chapter Tel 416-225-7166). They should be helpful regarding planning for your sister.
February 12, 2009 at 1:53 pm
Winkwink…..the link is http://www.communitylivingtoronto.ca/misc/regions/nyork/index.html
hope this helps, Mike
February 13, 2009 at 10:08 am
Mike,
Thank you so much for your help! I’ve found it so hard to track down this sort of information.
June 27, 2009 at 11:42 am
I applied for my son about 3 months ago through his doctor and haven’t recieved approval or rejection yet. Does anyone know how long the approval process typically takes? Should I be following up with CRA?
Thx.
July 6, 2009 at 5:11 am
@ Jaxon
We applied in April ( I picked up the form from the doctor & sent it in myself) & heard back about approval within a month. We are still waiting for the credit to be applied though. I was able to check online ( I applied for a cra account before & was able to track progress of the application online)
Hard waiting… Maybe give CRA a call & see what is up?
August 24, 2009 at 6:15 pm
I sent in my T1 adjustemnt forms back in July then recieved a letter saying that the CRA received my info that was July 6 2009 I now called the CRA (Aug 24/2009) and they say they are still working on it but stated that new guidelines are now 26 weeks to make the adjustments and I would be seeing a letter from them in early Jan 2010. Is this correct or is CRA pulling my leg? THe last Adjustment I had with my 1st son only took 4 weeks why would it take 6 months this time?
September 2, 2009 at 2:51 am
@ Randy… Well then I should be hearing back from them in November ( I think I sent in my T1 adjustment into them in May! ) Are you sure you aren’t thinking about the Child Tax Credit adjustment only taking 4 weeks? That adjustment came back within 4-6 weeks for our family. I can see them having to have guidelines for T1 adjustments because it takes time to go through many years of tax returns.
September 2, 2009 at 9:42 am
No it is the T1 adjustment however when I applied for one of my other children it only took 4 weeks for the child tax part but when I sent in my T1’s for the ten years it only took 6 weeks. I have no clue why it would have to take so long for a second adjustment. I would think that 26 weeks for the 2nd child is way off the wall but I do have some new news as the day after I talked to the Gov and they said 26 weeks I talked to another rep and she said 6 to 8 weeks no lie. So what is going on here? Why would I be told different things?? As a tax payer I expect my Government to do the adjustment as quick as possible as I pay them every 2 weeks out of my paycheck on time. I only feel that they should be just as efficient to hand over my money as quick as possible and to adjust 10 years well I have done a simulation of my adjustment and it only took me an hour or less.
September 5, 2009 at 2:21 am
@ Randy – I don’t know what to say to you… have Patience! These people are doing a job ( and not a very fun one – imagine telling people things they don’t want to hear everyday!) You and everyone else is waiting for a T1 adjustment. ( Tax season was not that long ago) Maybe that is why they are quoting vague wait times… I heard they are quoting different wait times according to where it is being assessed ( Winnipeg is at over 20 weeks) It will come….
November 5, 2009 at 3:14 pm
Update on the T1 adjustment… It finally arrived the middle of October. So start to finish the whole process took around 5 months.
February 8, 2010 at 11:27 am
I wanted to know what the refundable type of Disability tax credits are. You mention that there are “two types of disability tax credits” – I know about the non-refundable one but did not know there was another one. Please let me know. thanks.
May 5, 2010 at 3:20 am
I am 37 years old and I have been recently diagnosed with ADD. In my quest to find more information about ADD, I was overwelmed to know that this may qualify for the Disability Tax Credit. I have contacted a few companies that specialize in filling out the forms for me, but my question is, can I do this process myself? Is there a certain way of filling out the form that I should know? From some research, it seems that these companies have a greater chance of approval?? Is this true???
Just need some guidance, if anyone can share any insight……thanks
May 7, 2010 at 5:05 pm
My Mom was contacted by Specialized company and they said she would qualify and would get a good return. We did not want to chance it on our own as no one in 10 years has brought this to our attention. So we were pretty thankful to them and it was a very good return. It was very easy from our standpoint and we were happy with our return. But, you should do whatever feels comfortable to you.
June 18, 2010 at 9:05 pm
Hello all, I just found out from my daughters ped yesterday that she/I will be qualified for the disabilty tax credit. He said he back dates it to when she was 1 years old – reason being—”this is something a child is born with”–How true is this ladies?!?!?! The dr asked me to think about her and my other 2 children that dont have ADHD- he asked” did she listen at 1 1/2 yrs old- and to think of it she didn’t and my other two did. He says he fills these out all the time and fills out the mental functions. They need to be supervised, helped to get dressed just as your walking out the door, same with they need help eaiting cause they cant sit still, hyperactive and impulsive. If anyone needs a good dr in the brampton area, email me and i will give you his name and number, – with a referral of course!! gingerfran@yahoo.ca
June 18, 2010 at 9:13 pm
BTW…my daughter is 8 yrs old and was diagnosed 2 yrs ago. The doctor, which by the way is a developmental pediatrician, also stated that on top of retro active payment, I would be receiving at least $150 more a month from the child tax—”woo hoo- at least our government is good for something”
June 19, 2010 at 8:34 am
@Brenda..we didn’t find out about the disability tax credit until our son was 6 years old///we were also paid back retroactive to his birth….nice chunk of change!…now my husband also qualifies for it///between the two of them (I claim them both) I get back every penny of tax I pay each year!…now because of this, we no longer contribute to RSP because there is no longer a tax advantage to it…instead we direct that money to our TFSA and other savings…
June 19, 2010 at 9:13 pm
Brenda,
The better place to put your money is the RDSP. In a nutshell the government matches your contributions or more. The lifetime limit is $200,000 and up $90,000 from the federal government.
The next step after that is to some Life Planning. The RDSP helps, but is not the only solution.
August 17, 2010 at 4:00 pm
My mom received a T1 adjustment form seeing she was approved from 2008 to 2014, since she paid no taxes the people who filled it in said they can transfer it to her son inlaw, Now does the retro payment come in her son inlaws name? Any info would be helpful?
August 30, 2010 at 8:52 pm
I just got my forms filled out and am ready to send them in. Now. I have an outstanding student loan from 1996 that the Gov’t have been keeping my refunds on to this point. Will the DTC help me getting the loan forgiven or removed?
I have ADD and been suffering with it my entire life. The rub is I was only just officially diagnosed at 34. I’d like to go back for all I can if it’s available to me.
September 12, 2010 at 8:10 pm
For people with disabilities, a RDSP may not be more advantageous than an TFSA or even an RRSP.
Because you are taxed on your income and the gain on your investment, it (an RDSP) may work out to be more of a tax burden than other investment vehicles.
The key is to do the calculations for the different vehicles, like our firm has done in the past.
December 12, 2010 at 5:04 pm
Many canadians are unaware that the canadian government offers tax benefits and grants for anyone who has a physical or mental disability. Unfortunately collecting these benefits can be complicated and stressful. At the Canadian Disability Corporation they simplify the process to make sure you obtain every dollar possible from the CRA. On top of this, they will also ensure you’re applied to other programs available to people with disabilities such as the Registered Disability Savings Plan (RDSP).
http://www.canadadisability.ca/
December 14, 2010 at 12:30 am
NEVER pay to have the forms prepared by someone else… Everyone is able to complete this form by themselves. The only area where it might be difficult is filled out by the doctor ( And a doctor can charge you to fill it out)
Just my two cents… Even if you are told that you will be able to get you the money you deserve – If you don’t qualify you are not going to get it. ( I have MS & do not fall into the disablity scale that they are looking for … And thank goodness for that!)
February 10, 2011 at 10:58 am
Hi.I had an accident long time ago. Now on my left hand four fingers missing. Can i apply for disability tax credit?
February 17, 2011 at 2:31 am
Can someone who show me how to complete a T1 adjustment. One company told me they charge 20% of the tax refund. Is there any easy way to do so?
February 24, 2011 at 4:51 am
@LTKD 20% who do they think they are? you can do it very easily yourself. I have filled out a T1 adjustment before but a letter is fine too. If they need anything else they will contact you. It takes quite awhile for this all to go through ( Especially around tax season) You need to have an approved DTC to apply to have the previous years adjusted.
Here is my letter ( With my personal info removed) Use the address for your local taxation centre ( Mine is Winnipeg – so that info is there) I claimed for a Child with a disability – If the DTC claim is for you then change the info below from Child disability benefit to Disability tax credit. Tell them they taxation year ( or years) you want reassessed. From what I have read you can go back as far as ten years ( usually to the date of diagnosis)
Hope this helps!
Ryan’s Mom~
Revenue Canada
Winnipeg Tax Centre
Attn.: T1 Adjustments
66 Stapon Road
Winnipeg, MB
R3C 3M2
Re: Account No. (Your SIN)
Your Name , Your DOB: Month, Day Year
Disability Tax Credit Certificate: Who you are claiming for ( You or person you are claiming for) DOB ( Their month,day,year)
To Whom It May Concern,
In regard to the Child Disability Tax Credit Certificate: I was advised that I was required to submit a request in writing to your office to ask that my income tax for the 2007 taxation year be reassessed for the Child Disability Benefit (CDB) based on the approved Disability Tax Credit status.
Please accept this letter as my request that this reassessment of my income tax be conducted for the years identified above.
Feel free to contact me at ( Your phone number or numbers) 000-000-0000 (home) if you require any further information to complete this request.
Sincerely,
Your name
Your SIN number
February 24, 2011 at 5:00 am
I hope my letter helps ALL who are looking at completing a T1 adjustment~ ( You do not have to pay anyone to collect funds that are rightfully your refund!) 20% from your T1 adjustment is a LOT of money!!
I almost forgot – If you do not have higher income and a spouse etc. claims the benefits from dependants ( or yourself) then the letter should come from them ( including their SIN etc)
Ryan’s Mom~
February 27, 2011 at 9:36 pm
Hello everyone, my good friend is disabled and wants to apply for the DTC and I told him I would help him find some crucial info about out.
In respects to the DTC, give me an example of a average lump sum a person with this conditon may get..
My friend is 30 and has had:
Disability 1: Type 1 Diabetes (16 years)
Disability 2: Bi-Polar disordar as a result of a severe seizure and comma from Diabetes (Since 10 years ago)
Both are certified disabilities and both can easily be confirmed as elements in the application,.
If he has 2 disabilities, since beyond 2005, over a decade, how much money could he get back in those years through backpay in 2011? Can it be twice the amount? and also what kind of savings bond amounts could he get?
I’ve read that some of you got 7-9 thousand back within 6 months of sending in the signed DTC forms to revenue canada, can anyone give me a idea of what he can aim for getting back in Dollar figures both short term and long term?
March 1, 2011 at 12:50 pm
If you were 18 years of age or older at the end of the year, claim $7,239. Otherwise, complete the chart for line 316 on the federal worksheet in the forms book to calculate your claim.
This amount has gone up over the years. So in 2005 this amount was Just over $6,500.
Tax refunds will vary from year to year.
The key is who’s income are you writing this off. If the person has no income the tax credit is of no use. One could transfer the credit to say a father or mother as an example.
The other key is to consider financial planning (long term) since the person who can qualify for the disability tax credit (who may not be able to have a job that pays well) Can live their life with Dignity. Currently, the RDSPs are not the solution that many Banks and other firms would have you believe (though it is the step in the right direction).
March 7, 2011 at 3:45 am
@ Nick – It will only be the one disability tax credit that he will get if he is approved- not two… (more than one disability claimed on the application is considered on the application for approval together) Once he has sent in the application & has approval is when he will apply the tax credit on his current years taxes ( If he hasn’t filed already) & fill out T1 adjustment of tax paid in previous years. He can only go as far back as the time the DTC was created. Check the CRA information on the DTC to verify when that was. (In all other cases you can claim back to the year of diagnosis noted by the doctor in the certificate if it was after the DTC was introduced)
This tax credit is only beneficial when applied to tax earnings ( Its a credit on Tax paid ) As John Amos said the credit can be transferred to someone who can claim for the full benefit of the credit for the claimant.
March 9, 2011 at 8:53 pm
Thank you Ryan’s mom for your information. Is really helpful. I just got the approval of the DTC and will be sending a letter to CRA tomorrow.
March 16, 2011 at 12:01 pm
I applied to DTC Feb 9th 2011 and as I watch on my account it show’s processing I have called CRA a few times and each time I get a different answer on the process it’s extremely frustrating!
March 17, 2011 at 6:40 pm
@klr – Sometimes the processing/approval will be delayed because they have to contact whoever filled out the form for you ( medical doctor etc.) for more infomation. Sometimes they are in no hurry to fill out more information… That is all done via the postal service & can take some time.
March 24, 2011 at 1:01 am
Hi everyone. First off, thanks to all who have taken the time to answer questions here. My wife has severe allergies to perfume, diagnosed as Multiple Chemical Sensitivities (MCS). She reacts to everything from the usual suspects like cologne and bodyspray to bounce sheets and the smell of detergent on people’s clothes. As you can imagine, this presents an enormous challenge for her and leaves her unable to work, or at times, leave the house. Has anyone here managed to successfully apply for the DTC based on MCS? And if so, have you any pointers on how to best focus our application to achieve success?
Many thanks in advance. Oh, and when reaching for your favourite detergent – pause, look two over to the right and pick the one that says [Your brand] Free. Saving us all one chemical at a time…
March 25, 2011 at 3:20 am
@ Non-scents. Unfortunately I do not think that MCS would qualify for the Disability Tax Credit. The credit is for Physical or Mental impairments. Here is a link from CRA to a short quiz that determines eligibility ( Copy & paste into your browser):
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/316/qstns/q1-eng.html
Double check with your doctor & have them look over the form to see if there is an area that they think you would qualify ( Medical professionals must fill out the form)
I have Relapsing Remitting MS & do not qualify…
March 27, 2011 at 8:49 pm
This question was asked before with no response so I am going to ask it again in hopes I can get an answer ive looked everywhere on the internet with no luck .I was approved by disibility for the past 10 years but i owe money to the goverment .I know they will pay the debt but if there is any left over will i receive it or does the goverment keep it all ? And is this a monthly payment or a yearly payment how does this work i was diagnosed with Fetal Alcohol Syndrome and would like to be able to know this information .Thankyou
March 28, 2011 at 11:06 pm
@ Darla – You applied to the CRA and were approved for the DTC Credit? If so you are able to claim the Disability Tax Credit on Line 306 of your tax return this year. ( I remember not being able to electronically file the first year though – I had to send in my paper tax return & slips) For adjustments to previous years you will have to file a T1 adjustment ( You have to state what years you want reassessed & You can go as far back as ten years) The government will take what is owed to them plus whatever interest has acrued then you will receive the remaining amount.
The DTC is not a set amount paid to you yearly/monthly etc. It is a tax credit that you can claim on income tax paid yearly. If you had no ( or low) income tax paid then you will not get the full benefit of this credit ( Although a higher tax paying family member who can claim you as a dependant can claim for you & get the full benefit.)
The DTC is also is not for lifetime approval. There is usually a date on the DTC Certificate ( Approval letter) letting you know when you will have to apply again…
You can always call the CRA and ask general questions about the Disability tax credit ( they might be able to explain all this better…)
Ryan’s mom
April 1, 2011 at 3:15 am
Hi.
I’m on ODSP, if I am qualify for the Disability Tax Credit Certificate. Will my ODSP amount will be affected? Please respond ASAP.
Thanks,
Marcelle
April 1, 2011 at 4:05 am
You’ll have to forgive me but I am not familiar with ODSP – Is it a provincial program? ( Not all of us are from the same area of Canada…) If it is a provincial program then this should not be compromised because the DTC is a Federal Tax Credit & is based on Federal Income Tax paid.
April 1, 2011 at 7:12 am
@Marcelle…the disability tax credit will not affect your ODSP…as Ryan’s mom stated the DTC is federal and ODSP is provincial (ontario disability support program)
April 1, 2011 at 7:59 am
I was not aware of this tax credit until late last year and was unsure whether my daughter would qualify.
I can certainly tell you that I just went through all the steps to have that DTC approved and to have all my tax returns assessed from 2004 onward, and it was well worth the effort!
I am glad I took the time and was able to take advantage of this tax credit.
Just remember the first step is to have doctors complete the required forms and then submit to the government. Once approved, the papers guide you with how to proceed.
April 2, 2011 at 8:00 pm
thanks for the quick response. Will I qualify for the DTC? If yes, can you please tell me how much the amount will be?
Thanks,
Marcelle
April 3, 2011 at 9:58 am
@Marcelle, you will have to contact CRA for the forms required in the application your worker at ODSP should be able to help you with that…there is a part of the application that your doctor must also fill out…you have to qualify as “markedly restricted in your day to day life” to qualify…once the paperwork is complete then you will send it to CRA with a request to reassess your previous years tax returns and they will inform you if you qualify or not…the amount will depend on your income and the amount of tax you pay…if your income is not taxable then the disabilty tax credit will not benefit you…if you still live with your parents then they may be able to use the tax credit on their returns…it is most beneficial to the higher income earner…hope this helps Marcelle…good luck!
April 3, 2011 at 3:17 pm
Here is the link to download the forms ( The link at the top is not working):
http://www.cra-arc.gc.ca/E/pbg/tf/t2201/
If you scroll up a few posts you’ll notice a link I posted to take a quiz to see if you might qualify for the DTC credit. The government will make the final decision as to whether you qualify to claim the credit.
April 4, 2011 at 5:09 am
Sparky, again thank you for the quick response. I have already filed my taxes with H and R Block for the year 2010. If I qualify for the Disability Tax Credit, will they go back a couple of years for me to get the tax back to myself? I live alone, both my parents died awhile ago.
Thanks,
Marcelle
April 4, 2011 at 7:19 am
Marcelle,
They will go back to 2004, when it was introduced.
You need to apply for the actual tax credit first and once apporved ask them to make it retro active. Then also ask to have all tax returns re-assessed since that time as well.
I just received my credit, and again it was worth the small wait and effort!
April 4, 2011 at 9:21 am
@Spope…my son was born in 1992 and we didn’t find out about the DTC until 1997..we were reassessed back to 1992…this credit has been around longer than 2004…the limit is set on how many years you can be backdated for…
@Marcelle, yes, you can be reassessed going back…I would start from the year you were diagnosed and see how far they will go…they will tell you up front how many years you can go back…you need to get the forms and you and your doctor need to fill them out…then send them in and go from there…you usually have to requalify every 5 years….
April 19, 2011 at 10:03 am
When a child is approved for the DTC, is the Child Disability Benefit automatically processed as well or is there a separate application process? Also, is the Child Disability Benefit paid retroactively as well?
April 19, 2011 at 11:36 am
@HLB…yes the child disability benefit is auto processed…I can’t remember if that is also paid retroactively…I don’t think it was but you could check with CRA to be certain
April 25, 2011 at 10:05 am
@Yvonne Bruno… Thanks, I called CRA and the Child Disability Benefit is paid retroactively, but you have to make a written request for this to be done. The CDB came into effect in 2003, so, depending on the date of disability, you can ask for the CDB for the tax years 2002 forward.
April 25, 2011 at 11:04 am
@hlb…ah…makes sense…we were already getting the disability tax credit when the CDB came into effect so we didn’t have any missed years for that…
May 30, 2011 at 3:29 pm
For anyone considering using an agency to apply for the Disability Tax Credit, you may want to read this article first…
http://www.cbc.ca/news/canada/story/2011/02/09/disability-tax-credit-revenue-agency-claims.html
June 7, 2011 at 10:34 pm
hi again, onced I turn 65 can I still be on ODSP or will they trasfter it to Old Age Pension? Will the amount be the same as my ODSP amount or will it be different?
Thanks,
Marcelle
June 12, 2011 at 1:58 pm
Ive been fighting for disability (ODSP) for two years and am in the final stretch now with a legal team behind me. Do I get a doctor to fill out the t2201 or do I wait until approval goes through? Having a hard time with the taxes this year and have no idea what I qualify for. Help please
June 13, 2011 at 7:00 am
Go ahead and ask your doctor to fill out the form…you don’t need ODSP to approve you to qualify for the disability tax credit…they are seperate from each other:)
June 28, 2011 at 1:39 pm
Hi everyone, such helpful information on here. I was wondering, my daughter was diagnosed in 2007, but as im reading here is it true that i can go back 10 years even if she was only diagnosed in 2007?????? She was born in 1998, so are you saying I can still go back another 5 years?????
June 30, 2011 at 10:59 am
@Minnie… The CRA will go back to the date the disability began, which is not necessarily the same date as the diagnosis. When your doctor completes the T2201, ensure that they state when the disability began, not when the diagnosis was made. Once you have the T2201, send it into CRA and ask them to reassess you from when the disability began. They will go back as far as 10 years. Hope this helps.
June 30, 2011 at 4:23 pm
My daughter has an intellectual delay, which is something she was born with. I called CRA and the lady I spoke to was wonderful and very helpful, she explained to me exactly what to do and also told me to write a letter and include it in when the form is sent in. I was only told the first time i applied that it was from the date of the diagnosis, so i guess i was told wrong, lol. But I am applying again from 2001-2006, and once again ty so much for your help.HLB
July 11, 2011 at 2:25 pm
Hi i been waiting for 16 weeks now just to get aproved. Keeping it this long can they still say no ? Some ppl said that if they were going to say know i would have heard by now is there any thruth to this ?
July 14, 2011 at 5:16 pm
Does anyone use this site anymore? I needed a ear to listen .
July 19, 2011 at 11:49 am
@Bella, call CRA and ensure they received your documents. 16 weeks is way too long. When I called, I was told 6 to 8 weeks. I applied in March and was approved in May. Hope this helps.
July 20, 2011 at 6:14 pm
I did check on line yesterday and this is what it said.
Year
Status
2011
You did not apply for the disability tax credit for yourself.
2004-2010
We are processing your information for the disability tax credit.
2001-2003
You did not apply for the disability tax credit for yourself
———————————————————————————–
The doctor went back as far as 6 years and that would be the 2004 till 2010 . Does this mean i was approved ?
July 20, 2011 at 6:15 pm
I checked online .
July 21, 2011 at 12:08 pm
Called them today they said that i forgot to sign the last page . I know i did because H&R block checked it before they sent it out . Now what to do ? The woman said first looks like i was appoved and then came back with that
it has been gone 16 weeks now and i guess i have to wait another 16 weeks this . But i know for a fact that the paper is sign. HELP ?
July 21, 2011 at 1:19 pm
Hi Bella,
Sorry to hear you are having such a hard time getting the disability form through! A couple of words of encouragement: it is GREAT that you are working with a tax office to help you with the form, they have more experience with that and will have a better idea of how long it will take to process and what will/won’t get approved and how to jump CRA’s hoops, in terms of writing letters and that sort of thing. If you have a good tax preparer, stick with them and they will help you through it. ALSO, they should have kept a copy in your file of the disability form that you filled out, so you should be able to check and see if you forgot to sign it or not.
Also, be patient with getting the approval- the CRA can be notoriously bad for approving the disability tax credit, especially for conditions that are not black & white (things like chronic fatigue syndrome for example, which are still sometimes contested as being “real” conditions). It may take a long time and it may take providing a lot of extra paperwork, letters etc, to get approved. Unfortunately CRA can be sticklers about doing things “right” and will disallow something as trivial as the form being done not exactly right. Just be patient, if your daughter qualifies, eventually you will get the approval.
As for the info you got, I would interpret it as follows:
2011- your application for the DTC was 2004-2010 so you did not technically apply for 2011, thus the response you got (once the credit gets approved you will have it for 2011 though)
2004-2010- they are still working on processing your application. It doesn’t mean they’ve approved it yet but they’ve got the paperwork and are working on it. Hard to say how long it will take but considering how long they’ve taken, you should expect to hear word in the next few weeks/month about whether you did or didn’t get it. You can expect it to go through BUT, as mentioned above, sometimes it can be a struggle to get them to accept that form. If you really didn’t sign it then they will disallow it and send you back word.
2003- you DTC form only went back to 2004 so they aren’t applying it to 2003 or prior, thus the response you got.
I hope this helps! Be patient, once the application finally does go through it will be on file for future years and will be much easier!
July 21, 2011 at 1:21 pm
PS- talk to the person at H&R who helped you fill out the form, and get them to help you out with this! They should be able to help you get to the bottom of it! If you need to do a new form, then you need to do a new form. But if they have a copy of the form and it’s signed in all the right places, it may be that your tax preparer can work out the problem and get the paperwork through…
July 21, 2011 at 1:36 pm
Ty so much but i didn’t make a copy for myself . But i know it was sign because thats the first thing my husband and H&B did checked to see if it was sign . But thats what they said . Now i guess i wait for them to come back to me in the mail . And then wait again and again and again . Ty so much for your kind words.
August 5, 2011 at 5:58 pm
I’ve been approved for the DTC dating back to 2007.
My approval letter came to me in the midst of my personal bankruptcy.
My trustee says I loose the whole thing and the money goes to my creditors.
My lawyer says it goes to me.
Does anyone know for sure?
How does the bankruptcy affect my ability to make RDSP contributions if at all?
Please help, all responses are appreciated!
Thank you
August 5, 2011 at 7:04 pm
Well it’s me again . They sent me the form back and took it back to the doctor and he printed his name . He did sign it but he forgot to print it . But this time we sent a letter along with it explaineing alot more . My husband will be claiming it seeing he makes much more money . So he filled that out as well . But i guess i am going to wait again . But please when u are doing your forms make sure all is done right . i had the ppl from H&R block go over mine and they missed it . So i guess i am asking if anyone had theres sent back and went threw this and how long now do i wait ?
August 9, 2011 at 3:28 pm
Becca,
Please see the following website…
http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02286.html
I think you’re pooched.
You said you were approved for the DTC, but have you requested a readjustment for previous tax years yet? If not, perhaps you should wait until after you’re discharged from bankruptcy. CRA will let you go back ten years, so it may be to your advantage to wait.
August 9, 2011 at 8:09 pm
hi mine name is tracey i have been on odsp for 15 years for severe anxiety attacts.agoraphobia and fibromyaligia and also a back in jury the list goes on..do u think i would be eligable for the dtc thank you so much
August 11, 2011 at 6:12 pm
@ HLB
thanks for your response. I have the approval letter dating back to 2007, but haven’t submitted the readjustment yet. Thanks for the link.
I checked it out…. I think I will try and go through the lawyer because I have been working the last 10 years fulltime and have stuggled dearly to do so. I didn’t even know about the DTC until very recently. It just seem’s like alot of money to throw away if I am entitled to it, since from what I understand there have been other cases similar to mine in which the courts have found the DTC money to be considered an income, in which case I would be entitled to it…… I think!
thanks for your response, and any other info is appreciated.
August 15, 2011 at 12:50 pm
Hi everyone . sent what they needed back on Aug 5th and i called today i can’t belive the said we start all over again . I can call back after 9 weeks after waiting since april 12 . Does this make sence . The doctor for got to print his name. He sign it but didn;t print it and we start all over . Makes me so upset .
August 15, 2011 at 7:08 pm
Hi,,, i received my refund from the disability tax credit and i am on ontario works,,,,they said that they are stopping all payments due to the fact that i have assets in my account and that i would have to pay back the amount of 8600.00 dollars. does anyone know how much each family member is allowed to have in their account without ontario works cutting the check or if the refund i received has to be locked in,,,like was said on my letter.
thanks for any info
August 17, 2011 at 1:39 pm
I am a severe hemophiliac, with 2 knee replacements, an arthritic elbow and an arthtitic ankle with Hepatitis C. I applied just recently. My mobility is limited due to the arthritis and surgeries. How long will it take in my case before i hear back from CRA?
August 17, 2011 at 2:40 pm
Hi Jack well they say you can call after 8 weeks . But sometime it takes longer . Now that it’s summer the members go on Vaction and we wait more. My doctor forgot to print his name . He sign it but did not print it and now we wait another 9 weeks . Sad but true . But give them a call after 8 weeks . They should tell u more then . But i waited 16 weeks even before i heard a thing from them . Now i wait another 9 weeks but ppl say it’s worth the wait .
August 17, 2011 at 9:13 pm
Hello,
I applied May 31/2011. Still no word. I have adult ADHD. I’m 36 and forgot to put my sneakers on before I left for work yesterday. Showing up to your Hospital job in your slippers…is never a good thing. Everyday is a struggle.
Any thoughts on a time line to hear from Canada Revenue? I live in Nova Scotia so my forms were sent to NFLD. The website says they are still processing …….
Thanks!!!
August 22, 2011 at 8:57 am
Seems everyones time line is different . They say 3 months . But everything needs to be done right on them forms or they send them back . I though all mine were done right but they were not . Now they say another 9 weeks. i have too wait even to be looked at again . Then if they need more info from doctor then we are looking at another 9 weeks. So we sent out the forms april 12 . I am not even going to think about it till oct now . It can be very hard on someone for sure. All i can say is good luck to everyone in there fight.
August 22, 2011 at 2:34 pm
Well they must have gotten the forms i sent back that the doctor printed his name . I got a letter today saying there is a delay in the process so i guess now i wait another 20 weeks lol . Wow But they never said no . And they never said they needed more info so thats a good sign .
August 22, 2011 at 5:43 pm
Do you only know if your forms are incomplete if they send them back in the mail? When I look online it just says “they are being processed.” You would think after the long wait to begin with, that they would call you.
Does anyone know if you have a certain agent that works on your case from start to finish?
August 22, 2011 at 7:41 pm
Well the doctor did print his name . They highlight what they missed and u have 30 days to send them back .
August 23, 2011 at 11:22 am
Yes they send the whole form back to you .
August 23, 2011 at 7:34 pm
Thanks Bella. Are u applying for yourself or a child?
August 31, 2011 at 8:31 am
Hi all, I checked my account online and it says we are processing your reqeust. I hope all goes well and they do not need me to resubmit etc. Thanks Bella for your encouragement.
August 31, 2011 at 9:23 pm
Mine also says its processing and has said that for three months. Today it says, processing for years 2005-2011. It never specified the years until this week. Anyone have any ideas on if this might finally mean they’re looking at it now?
September 1, 2011 at 9:23 am
Mine said that too . But my forms came back to me . Because the doctor forgot to print his name . I called them and they told me what was going on . Give them a call Di they will fill you in more.
September 2, 2011 at 7:17 am
I think I’ll hold off a little while longer. I’m hoping now that it shows what dates they are processing, it means they must have actually started to go through my application. It is very long as my learning disability test came back as a 27 page report. Even my Doc said he never seen one that long! Haha
Here’s hoping!!
September 4, 2011 at 7:32 am
Ok so I heard from them. They said they have sent another form to my Family Doctor. They said its common that they need some more information. So I need to make an appointment this week to go see what it is. Probably another 60 bucks to get it filled out…..I think they should pay for these fees as I already sent them everything they asked for.
Anyone have an additional form sent to the Doctor?
September 4, 2011 at 4:23 pm
You can claim the 60 dollars on your taxes when you do them .