$9,428 In Disability Tax Credit (DTC) : Life might often feel too much when you or someone you love and care for is disabled, either physically or mentally. However, knowing that you might qualify for government financial assistance can be useful. This can also become a plus point when it comes to their adequate treatment.
You may also be eligible for the disability tax credit (DTC) and up to ten years of back credit in addition to the municipal and provincial resources. All these benefits are available to you. If you were entitled to these advantages, you wouldn’t want to lose out on them.
We’ll go over all the details in the following guide, including who is eligible for the credit, why it’s so important, and how to apply for yourself or a loved one. You can also check the payment schedule, payment amount, and a lot more here.
Table of Contents
- 1 Disability Tax Credit (DTC) – Highlights
- 2 What Is Disability Tax Credit?
- 3 What Is The Eligibility Criteria For Disability Tax Credit?
- 4 Types Of Disability Categories
- 5 Steps To Apply For Disability Tax Credit (DTC)
- 6 Maximum Payment Amount You Can Claim
- 7 Disability Tax Credit Amount Sheet
- 8 What To Do If My Application Is Rejected?
- 9 FAQs : Disability Tax Credit (DTC)
Disability Tax Credit (DTC) – Highlights
Credit Name | Disability Tax Credit (DTC) |
Country | Canada |
Eligibility | Severe and prolonged impairment certified by a medical practitioner.Impairment in specified categories or significant limitations in multiple categories. |
Application Form | Form T2201 – Disability Tax Credit Certificate |
Credit Amount | Adults (18 and older): $9,428 Children (17 and younger): $9,428 + $5,500 (supplement) = $14,928 |
Claim Period | Current tax year or retroactively for up to 10 years if eligible but not claimed. |
Transferability | Unused amounts may be transferred to a supporting family member. |
Refundability | Non-refundable |
Claiming Process | Claimed during tax filing on specific lines of the tax return depending on the claimant’s relationship to the person with the impairment. |
Website | www.canada.ca |
What Is Disability Tax Credit?
The Canadian Government runs several schemes and official programs for the ease and benefit of Canadians. Disability Tax Credit is such a scheme that helps disabled people survive the cost of living and meet their medical expenses.
The Disability Tax Credit (DTC) is a non-refundable federal tax credit that lowers income tax obligations for individuals with physical or mental disabilities, their caregivers, spouses, and common-law partners. You will not be refunded for any of the DTC if you have no income tax due.
This credit is non-refundable and can only be used to lower taxes payable. The DTC is intended to partially defray the costs of therapeutic care needed for an individual to sustain a life-sustaining function.
What Is The Eligibility Criteria For Disability Tax Credit?
If you’re also interested in knowing whether or not you can apply for the Disability Tax Credit, you should familiarize yourself with the requirements:
- You have a severe and extended impairment in one disability category that is listed below.
- You have significant limitations in at least two of the disability categories.
- You receive therapy to help with a vital function.
Types Of Disability Categories
Several categories of disabilities may qualify you for the DTC:
- Vision
- Hearing
- Speaking
- Walking
- Mental functions
- Life-sustaining therapy
- Dressing
- Feeding
- Eliminating (bowel or bladder functions)
Steps To Apply For Disability Tax Credit (DTC)
You just need to keep the following points in mind and you can easily apply and claim for the Disability Tax Credit (DTC):
- Individuals or members of their supporting family must fill out and submit Form T2201, the Disability Tax Credit Certificate, either as an Updated Form or a New Digital Form, to apply for the DTC.
- Basic details regarding the disabled person and, if relevant, the supportive family member who may be eligible to receive the disability amount are required on this form.
- If relevant, you can also agree to have the CRA automatically amend the tax returns from prior years.
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Maximum Payment Amount You Can Claim
In case, you’re an eligible Canadian, you must know the maximum amount of Disability Tax Credit you can claim. Here’s the maximum amount for both adults and children mentioned:
- Adults (18 years and older): The base disability amount is $9,428.
- Children (17 years and younger): The disability amount is $9,428, plus a supplement for children of $5,500, totaling $14,928.
Disability Tax Credit Amount Sheet
Here’s the detailed amount sheet for the Disability Tax Credit over the past few years:
Year | Maximum Disability Credit Amount | Maximum Amount For Persons Under 18 |
2023 | $9,428 | $14,928 ($9,428 + $5,500 supplement for children) |
2022 | $8,870 | $5,174 |
2021 | $8,662 | $5,053 |
2020 | $8,576 | $5,003 |
2019 | $8,416 | $4,909 |
2018 | $8,235 | $4,804 |
2017 | $8,113 | $4,733 |
2016 | $8,113 | $4,667 |
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What To Do If My Application Is Rejected?
If you receive a notice of decision stating that your DTC application has been denied, you have a few options at your disposal. Take a close look at the notification to start.
We’ll give you an explanation for your denial. You should next refer to your Form T2201 and compare it with the explanation given, as the CRA based its decision on the data that you filed. If you think you ought to have been approved, you might take the following actions:
- For assistance with your application and to ask about any issues you may have, kindly contact the Canada Revenue Agency (CRA).
- You can also simply ask for a review. The Canada Revenue Agency (CRA) will review your application again if you get in touch with them in writing and provide any updated medical information.
- Please send in all relevant medical information: It may be less likely that the Canada Revenue Agency will reject your application if you include supporting documentation with it, including medical records or a note from your doctor.
- You have ninety days from the time you receive the notice of determination to file a formal objection if you still strongly disagree with the verdict.
FAQs : Disability Tax Credit (DTC)
Ques 1. What is the maximum DTC an adult individual can get?
Ans. You can claim up to $9,428 in financial benefits as an adult beneficiary through the DTC scheme.
Ques 2. Is it possible to claim the DTC for previous years?
Ans. Yes, you can claim the DTC amount for back years in case you were eligible and hadn’t claimed for any. The back years could be a maximum of 10 years.
Ques 3. What if I never worked? Can I still apply for the Disability Tax Credit?
Ans. In case you’ve never worked or paid income taxes, you’ll not be eligible to claim any DTC benefits.
Ques 4. Can I claim the DTC benefits if my medical conditions improve?
Ans. As soon as your medical condition improves, you must inform the CRA. Once you are not eligible under medical requirements, you can’t claim DTC payment amounts.