| What is the disability tax credit (DTC)? |
The disability tax credit (DTC) is known as the “disability amount” on your income tax return. The DTC is a non-refundable credit that reduces the amount of income tax that a person with a disability, or their supporting person, might otherwise have to pay. |
| Who qualifies for the credit? |
Eligibility for the DTC is based on the effects of the impairment rather than its presence. A person is eligible to apply for the DTC if he or she has a mental or physical impairment that is severe and prolonged and that the effects of the impairment are such that one of the following applies:
- The person is blind, even with the use of corrective lenses or medication.
- The person is markedly restricted in any of the following basic activities of daily living: walking, speaking, hearing, dressing, feeding, elimination (bowel or bladder functions), perceiving, thinking, and remembering.
- The person needs, and must dedicate a certain amount of time specifically for life-sustaining therapy.
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| How the terms: qualified person, prolonged, markedly restricted and life-sustaining therapy are defined? |
Qualified person – Qualified persons are medical doctors, optometrists, audiologists, occupational therapists, psychologists, and speech-language pathologists.
Prolonged - An impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months.
Markedly restricted – A person is markedly restricted if, all or substantially all the time, the person is unable (or it takes an inordinate amount of time) to perform a basic activity of daily living, even with therapy (other than life-sustaining therapy) and the use of appropriate devices and medication.
Life-sustaining therapy– Life-sustaining therapy is therapy a person needs to support a vital function. The person must also need to dedicate time specifically for this therapy – at least three times per week, for an average of at least 14 hours per week, and it cannot reasonably be expected to be of significant benefit to persons who are not so impaired.
Examples of life-sustaining therapy include chest physiotherapy to help in breathing, or kidney dialysis to filter blood. It does not include implanted devices such as a pacemaker, or special programs of diet, exercise, hygiene, or medication. |
| How to apply for the Disability Tax Credit? |
Complete Form T2201, Disability Tax Credit Certificate available at CRA offices, call 1-800-959-2221 or the form can be downloaded from the CRA Web site at www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html. The form must be signed by a qualified person. |
If I receive CPP or QPP disability benefits, will I automatically qualify for the DTC?
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| No, the two programs are separate. The qualification criteria are completly different for those benefits and are independent from each other. |
| I have received the DTC for a number of years. Won't I automatically qualify if I am reassessed? |
No, you have to reapply and be reassessed to qualify again. |
What can I do if I apply and am turned down or if I have been re-assessed and then been disqualified from receiving the DTC?
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You can appeal the decision made by CRA by filing a Notice of Objection with the Appeals Section of your regional tax office of CRA within 90 days of the date of the Notice of Assessment from CRA disallowing the tax credit.
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| What can I do if I lose my appeal? |
| You can file a Notice of Appeal with the Tax Court of Canada within 90 days of the date of the Notice of Confirmation. |
| I have zero or minimal taxable income, should I still apply? |
| Definitely, the unused portion of the Tax Credit is transferable to a family supporting you. Since the DTC is non-refundable, it can be used to reduce taxes to zero, but it does not trigger a payment from the Government when the amount of the credit exceeds tax otherwise payable It may be the case that an individual with a severe and prolonged disability does not have enough taxable income to make use of any or all of the DTC. In other words, their federal tax liability may be less than $1,038 in 2004, even before the DTC is applied. If someone cannot use all of the DTC himself or herself, the unused portion can be claimed by a family member; either a spouse or another supporting relative. The list of family members eligible to receive a transfer of the DTC has been expanded in recent years, most recently in 2000. Now, it can be claimed on behalf of someone’s (or their spouse’s or common-law partner’s) parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew. |
| I just have been qualified to receive the DTC back dated for past years, as well. Can I claim it for those years? |
| Yes, the DTC can be claimed for past years for up to 10 years. You must ask for a reassessment of your taxes for those years and you must have a tax return filed for each year even if you had no income. |
| What is the amount of refund I can expect for past years after reassessment? |
It depends on individual cases; anywhere from $0 and up. It is not unusal to get back $10,00 or more. |
| How long will I get the DTC for? |
The length of time you qualify for the DTC is subject to CRA's internal policies. They can grant the credit for one year time frames, and you will have to reapply each year, or they can grant it for specific lengths of time (ie. 5 years), or they may grant it permanently if conditions are such that they are not going to change during you lifetime.
When you receive your Notice of Assessment stating that you qualify for the DTC, there should be a further statement stating exactly how long you have before you need to reapply. |
| How long does it take to process a DTC application? |
| It can take from a few weeks up to 6-8 months. |
| Are there any conditions on how the tax refund is spent? |
No, there are no conditions on how you spend the money. You don’t need to submit expenses related to your disability.
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| What are some of the examples that might make me qualify for the DTC? |
Here are some of the conditions you may have which may make you eligible for the disability tax credit:
• you are unable to walk normally for 100 meters (the length of a football field) without angina, pain, or a cane, wheelchair or walker;
• you have vision loss in excess of 20%;
• you are markedly restricted in communicating;
• you are unable to hear clearly, even with hearing aids;
• you require assistance in feeding;
• you are unable to bathe or fully dress yourself without assistance;
• you have poor bladder or bowel functioning;
• you have problems perceiving instructions, thinking, or remembering (people suffering from dementia or Alzheimers);
• or you need life-sustaining therapies such as kidney dialysis or chemotherapy 3 or more times a week. |
| Does it make any difference what the cause of my disability is? |
| No, your disability can be the result of a workplace injury, an accident, declining health or a chronic or genetic condition. |
| What is the amount of the DTC I can claim? |
| If you were 18 years of age or older at the end of 2007, you can claim the federal disability amount of $6,890 (2007). The credit amount is multiplied by the lowest marginal tax rate (currently ?% 2008), and the person’s federal tax liability is reduced by this amount (currently $?). This is in most provinces matched by a provincial tax credit that varies from province to province but it could be up to 50%. No receipts are required to claim the credit, that is, all eligible persons may claim the full amount. The credit amount is fully indexed to inflation |
| Who can determine eligibility for DTC? |
Eligibility is determined by an assessment conducted by a medical professional. While medical doctors can certify all types of impairments, other professionals are limited to certifying impairments in their respective fields, as summarized in the following table:
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Medical professional
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Type of impairment
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| Medical doctors |
All impairments |
| Optometrists |
Vision |
| Audiologists |
Hearing |
| Occupational therapists |
Walking, feeding, dressing |
| Psychologists |
Perceiving, thinking and remembering |
| Speech-language pathologists |
Speaking |
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