What is the Disability Tax Credit (DTC)?
The Disability Tax Credit (DTC) provides a means for parents to receive a tax break when they file their income tax with the Canada Revenue Agency (CRA) on expenses for a child with special needs resulting from having a particular medical condition or diagnosis. Examples may include autism spectrum disorder (ASD), attention deficit hyperactivity disorder (ADHD), that causes impairment in day-to-day function.
Why Apply for the Disability Tax Credit (DTC)?
According to the CRA: “In the event that the DTC is successful, you can submit for the specific costs that you have had to incur as a result of the impairment from your child's condition, such as:
- Medications
- Specialized camps for special needs youth
- Childcare costs from needing specialized childcare providers (as opposed to leaving the child simply with a family member or regular babysitter)”
Wondering About Applying for the Disability Tax Credit (DTC)?
Here are questions to consider, based on CRA criteria from the DTC Application Form, as retrieved from CRA website in 2016:
Questions to consider |
CRA Criteria from website. |
Does the person have restrictions at least 90% of the time, even with treatment and therapy?
Yes __ No ___ |
The effects of the person’s impairment must be those which, even with therapy and the use of appropriate devices and medication, cause the person to be restricted all or substantially all of the time (at least 90% of the time). |
Does the person have restrictions in these categories:
|
Basic activities of daily living (ADLs) are walking, speaking, hearing, dressing, feeding, eliminating (bowel or bladder functions), and mental functions necessary for everyday life. (Note that working, housekeeping, managing a bank account, and social or recreational activities are not considered basic activities of daily living). |
Is the person markedly restricted, i.e. takes at least 3 times longer than a person without such impairment?
Yes ___ No ___ |
The person is considered markedly restricted in performing the mental functions necessary for everyday life (described below) if, all or substantially all of the time (at least 90% of the time), he or she is unable or requires an inordinate amount of time to perform them by himself or herself, even with appropriate therapy, medication, and devices (for example, memory aids and adaptive aids). Note An inordinate amount of time means that your patient takes three times the normal time required by an average person who does not have the impairment. |
Mental functions: Does the person have with mental functions such as:
Yes __ No ___ |
Mental functions necessary for everyday life include:
Examples of markedly restricted in the mental functions necessary for everyday life:
|
Have you been able to answer YES to all the above questions? If so, then you might consider applying.
Looking to Apply for the Disability Tax Credit (DTC)?
Learn more about the DTC from the Canada Revenue Agency (CRA) website.
Looking for help and assistance with the DTC?
- Consider speaking with the office of your member of parliament (MP). They can help you with navigating the DTC as it is a service of the federal government (Canada Revenue Agency).
Looking to apply for the DTC?
- Speak with your healthcare provider. Note that simply having a diagnosis of a medical condition or diagnosis is note enough to meet criteria for the DTC; one needs to show that the diagnosis or condition causes significant impairment meeting the DTC criteria.
Beware Companies Offering to Fill out the Disability Tax Credit!
- There are private companies that will offer to help you fill out the DTC, but beware. Some of them are dishonest and will expect you to pay outrageous amounts of funds if you are successful, such as ongoing fees based on a percentage. If they do charge a fee, ensure it is a one-time fee.
Looking to Apply for a Loved One with a Specific Condition?
Are you looking for more information about the DTC, and does the person have a specific condition such as:
-
Does the applicant have troubles with ADHD or a learning disability?
-
Learning Disabilities Association fo Canada
https://www.ldac-acta.ca
-
Learning Disabilities Association fo Canada
-
Does the applicant have troubles with ADHD?
-
Centre for ADHD Awareness, Canada (CADDAC)
www.caddac.ca
-
Centre for ADHD Awareness, Canada (CADDAC)
-
Does the applicant have autism spectrum disorder (ASD)?
- Contact your national or provincial autism association for information about disability tax credit for those with autism, e.g. Autism Canada, or Autism Ontario.
Questions for Parents/Caregivers to Consider for Mental Health and Brain Conditions
Has your health care provider agreed that it might be reasonable to apply for the DTC? If so, then think about your child, and try to come up with examples of how your child has difficulties in these areas. You can go over this information at your next visit with the health care provider.
Presence of Restriction
Does the person have restrictions at least 90% of the time, even with treatment and therapy?
|
Yes __ No ___ |
Does the person have restrictions in these categories:
|
Yes __ No ___ |
Is the person markedly restricted, i.e. takes at least 3 times longer than a person without such impairment?
|
Yes __ No ___ |
Types of Mental Functions
Adaptive functioning
|
Please provide more information... |
Memory: Any problems with remembering
|
Please provide more information... |
Problem-solving, goal-setting, and judgment: Any problems with
|
Please provide more information... |
START OF LIMITATIONS
What YEAR did the above limitations begin? (This is not necessarily the same year as when the diagnosis was made). |
Have you Completed the Above Form?
If so, then please return and discuss with your healthcare provider. Your health care provider will review, and let you know if it makes sense to submit.
If submitted, note that the decision is NOT up to your health care provider -- it is the CRA that decides.
For More Information
Canada Revenue Agency (CRA) website.
URL: https://www.canada.ca/en/reven...
Authors
Written by the health professionals at CHEO.
Disclaimer
Information in this pamphlet is offered ‘as is' and is meant only to provide general information that supplements, but does not replace the information from your health provider. Always contact a qualified health professional for further information in your specific situation or circumstance.
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