Disability Tax Credit
The Disability Tax Credit (DTC) reduces the amount of income taxes eligible Canadians are required to pay on an annual basis. Gaining DTC approval can result in more than $45,000 in refunds paid directly from the Canada Revenue Agency, and future annual tax savings of more than $4,500 per year.
In order to receive a refund from the CRA, your household must have been paying income taxes during the years in which you suffered from your condition.
Qualifying for the Disability Tax Credit can earn you money via two different avenues:
Retroactive Refund
Individuals who experienced health challenges in previous tax years can now claim retroactive tax adjustments, with a DTC approval. We provide adjustments for a maximum of 10 years, potentially resulting in refunds of $45,000.
Future Savings
Once approved, tax-paying households can save up to $4,500 in taxes paid annually. In addition to the retroactive fund, DTC eligibility is a prerequisite for other programs such as the Canada Disability Benefit, Canada Worker’s Benefit, and the Registered Disability Savings Plan (RDSP).
What if I don't work?
You can still qualify! Many individuals who don’t work still pay taxes (disability payments from their employer, pension income). Additionally, in many cases, we are able to transfer credits to a spouse or family member in the instance that the individual with the disability does not pay taxes.
Can I apply on behalf of a deceased family member?
Yes! As long as the individual has been deceased for less than 10 years.
Can I apply for a family member?
Yes! Give us a call.
Should I apply if I don't have a job?
The simple answer is yes. In order to receive a refund, however, you or your spouse need to have been paying taxes in previous years. Just because individuals aren’t working does not mean they haven’t paid taxes.
How can I tell if I pay taxes?
Paying taxes means any contribution to the CRA as a result of earning income. Individuals who earn working wages, pension income, RRSP income, disability income, and dividend or investment income are some examples that will typically result in paying taxes.
What happens if I've been denied?
Many people are denied on their first or even second attempts. Often when individuals apply on their own, they are denied as they don’t understand the “tricks” to a successful application.
We have a strong track record of getting previously denied individuals approved.