Throughout the past 10 years, I have had the opportunity to work with
thousands of individuals - each with different goals and priorities. However, there is one trait that unites us all – everyone loves getting a cheque from the government. The only issue is not everyone is familiar with the credits that are available, which is why we are here to help.
Perhaps the most beneficial, yet largely misunderstood, credit is the Disability Tax Credit (DTC), which can potentially save thousands of dollars in tax each year for individuals dealing with physical and mental impairments. While this credit may sound familiar to some, a misconception is that in order to receive the DTC, the individual must be in a wheelchair or bed ridden. This is no longer the case.
Eligibility Requirements
Eligibility for the DTC has been expanded in recent years to cover a wide array of impairments including everyday activities such as walking, vision, speaking, hearing, mental functionality and many more. If you or a loved one deals with a severe impairment in one of the qualifying categories or has trouble in at least two of these categories, the DTC may be an option to consider.
Application Process
When applying for the DTC, the first step required is to fill out the application form and take it to a medical practitioner of your choice – as they are required to validate on your behalf. Once the form is signed, it has to be submitted to CRA for review. Our standard practice is to submit these forms electronically to minimize the processing time. If approved, the DTC will be added to your CRA account and the next step would be to review which years you have been approved for.
How can we help?
Even after being accepted for the credit, you may still be missing out on potential savings –
which is where we come in. With backpay potential of up to 10 years and a variety of transfer options, let us find the most beneficial route for you to optimize this credit. When adding the DTC credit to your account, CRA will not optimize your savings by transferring credits between family members. By reviewing the adjusted years with a tax professional you can ensure you are maximizing your refunds.
As always, taxes can be confusing and we are here to help simplify things. If you think the DTC may apply to you, or someone you know, please don’t hesitate to reach out to our team to discuss options or questions you may have.