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Disability Tax Credit (DTC)

What is the Disability Tax Credit (DTC)?

If you work or make money, you might pay some of your money to the government each year in the form of taxes. The Disability Tax Credit (DTC) can help to reduce the amount of income tax that a person with a disability (or their supporting family members) might have to pay. It’s meant to help cover some of the extra costs related to disability.


The DTC is non-refundable. This means that it can help you pay less taxes, but you will not get any money back.

 

Why Should You Apply for the DTC?

The DTC isn’t perfect – we know it can be difficult to apply for and we’re working to change this. But right now, it can be an important tool to help you financially.


Even if you don’t work or make money, you should still apply. Being approved for the DTC can help you get access to other federal, provincial, or territorial programs such as:


You may also be able to claim certain medical expenses if you are eligible for the DTC.


Another reason to apply is that the DTC is retroactive. This means that if someone has been living with a disability for years before they apply, they can claim the DTC for up to 10 previous years.

 

Who Can Get the DTC?

To get the DTC, you must:

  • Be any age (children and adults can apply)

  • Live in Canada for tax purposes (you do not have to be a permanent resident or a Canadian citizen)

  • Have a valid Social Insurance Number (SIN), which is temporary or permanent.

  • Have a severe and prolonged disability, certified by a medical practitioner

 

To get the DTC, a medical practitioner must certify that one or more of these situations apply:


1) You have a marked restriction in at least one activity of daily living

This means that all or almost all the time (at least 90% of the time), you are either:

  • Unable to do the activity, or

  • It takes you three times longer than someone your age without a disability


The activities of daily living include:

  • Walking

  • Mental functions (adaptive functioning, attention, concentration, goal setting, judgement, memory, perception of reality, problem-solving, regulation of behaviour and emotions, verbal and non-verbal comprehension)

  • Dressing

  • Feeding (eating or preparing food)

  • Eliminating (using the toilet)

  • Hearing

  • Speaking

  • Vision


If you are not markedly restricted in one of these categories, you might still qualify if you:


2) You have significant limitations in two or more activities of daily living listed above, or;


3) You receive life-sustaining therapy. This means you need therapy to support a vital function. It must:

  • Be needed at least 2 times a week

  • Take an average of 14 hours each week.


You can check here to see what counts as therapy.

 

To learn more about how to qualify for the DTC, visit the Government of Canada website.

 

How to Apply for the DTC

You can apply for the DTC by paper form or by online form. Here’s the process:


Step 1: Fill out the form

The application is called Form T2201 – Disability Tax Credit Certificate

It has two parts:

  1. Part A has to be filled out by the applicant (the person with the disability or their legal representative).

  2. Part B has to be filled out by a medical professional (doctor, nurse, occupational therapist, or other qualified health professional).

 

Step 2: Submit the form to the CRA

Once both parts of the form are done, you will need to sign it and send the form to the federal government Department of Canada Revenue Agency (CRA), through your CRA My Account (if you have an electronic account) or by mail.


If you need an alternate format or want to apply in a different way, you can request that from the CRA here.

 

Step 3: Wait for a decision

The CRA will review your application and send you a letter to let you know if you are eligible or not. This is called a ‘Notice of Determination’.  


This process usually takes 8 weeks, but it can sometimes take longer.  You can check how long it’s currently taking by clicking here.

 

Need Help?

Applying for government programs like the DTC can be confusing – but you don’t have to do it alone.


Inclusion Canada has a new Benefits Without Barriers program, which offers free, one-on-one help with disability benefits.


You can get help with applying for the Disability Tax Credit (DTC) from one of our Navigators. Contact one here. 

 

Helpful Links & Resources

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