If you or someone you know suffers from a disability and has been struggling financially, and is looking for valid information about how to qualify for disability tax credit, then it is important for you to know that the Canadian Government offers tax benefits for Canadians with a range of health issues. The Disability Tax Credit (DTC) helps to offset the expenses associated with a continued impairment in mental or physical functions.
The DTC is a non-refundable tax credit that helps to reduce your taxable income. To become qualified to receive this tax benefit, there are numerous aspects which must be considered. Once approved, the DTC can be passed on to your partner or spouse or even to other family members.
How To Qualify For Disability Tax Credit
Many things help to determine whether a person is eligible for the Disability Tax Credit. These include the applicant’s taxable income, duration, and severity of the medical condition, the amount of support provided from family members, and more.
Other criteria will also need to be addressed in the process of application. However, the medical, legal and tax-related issues can be quite difficult for the average person to comprehend. This causes many issues, with many claims being denied due to minute errors. These errors can potentially lose applicants thousands of dollars. These are some factors we need to consider about how to qualify for disability tax credit.
The purpose of the Disability Tax Credit is to offer greater tax equity by giving relief for unavoidable additional expenses associated with the disability, that taxpayers normally don’t have to deal with.
Eligibility for the Disability Tax Credit can also lead to federal, provincial, or territorial programs like the working income tax benefit, the registered disability savings plan, as well as the child disability benefit.
Can I Claim Disability Tax Credits?
So how to qualify for disability tax credit? To qualify for the Disability Tax Credit, your medical practitioner must certify that the applicant has a severe or prolonged impairment and describe in detail, its effects. There are many different ways a person can be eligible for the DTC, but it must be a prolonged impairment to qualify. The person who can claim a disability tax credit must also meet at least one of the following criteria:
- They are blind
- They are markedly restricted (completely unable to or take an excessive amount of time to perform basic activities of daily living – even with therapy)
- They are significantly restricted in two or more basic daily living activities which can include vision impairments
- They require life-sustaining therapy
In addition to the above qualification, all of the following impairments must be met:
- The impairment is prolonged, (has lasted, or is expected to last for a continuous period of at least 1 year)
- The impairment is present at least 90% of the time
Claiming the Disability Tax Credit for a child or aging parent can be a difficult task, but when it comes to tax time, it’s worth the effort to receive the extra benefits. Get in touch today to find out more.