ISAC is running a summer website series to promote materials that will help individuals and/or their caregivers, friends, healthcare professionals and other support workers, apply for the Disability Tax Credit. We will only share materials created by trusted sources.
What is the Canada Disability Benefit?
The Canada Disability Benefit (CDB) is a new federal government benefit that provides direct income support to people with disabilities who are between 18 and 64 years old and who are eligible for the Disability Tax Credit (DTC). There are other eligibility requirements for the CDB as well, including income-related eligibility requirements. Read more about the CDB on the government’s website at this link.
What is the Disability Tax Credit?
The Disability Tax Credit is a non-refundable tax credit designed to help with costs associated with a disability. The DTC is not a monthly payment. The purpose of the DTC is to reduce the amount of income tax people with disabilities, their families, or their supporters, pay annually. This means that it can help someone pay less tax. If the person with the impairment does not owe taxes, they can transfer the DTC to a spouse or a family member. If no one in their family owes taxes, it is still worthwhile to apply for the DTC because it makes people eligible for other government benefits. Read more about the DTC on the government’s website at this link.
You may be eligible for the DTC if a medical practitioner certifies that you have a severe and prolonged impairment. You will need a medical practitioner to fill out some of the forms, and it will likely take several months for your application to be reviewed and approved. Applications for the DTC go through the Canada Revenue Agency.
How are the CDB and the DTC related?
The DTC serves as a gateway program for other income and tax benefits, including the Canada Disability Benefit.
You have to first qualify for the DTC before you can apply for the Canada Disability Benefit.
Check out the resource below for information and supports on applying for the DTC.
Spotlight on: Demystifying the DTC
Direct link to the resource:
Canada Revenue Agency (CRA) website on “Demystifying the DTC” https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/demystifying-disability-tax-credit.html
Who is it meant for? Individuals and their supporters
Is it available in multiple languages and/or formats? Yes! The website is available in French here: Démystifier le crédit d’impôt pour personnes handicapées – Canada.ca
Why we like it:
Misinformation can discourage eligible people living with disabilities from applying for the Disability Tax Credit. One common misconception is that the DTC is of no benefit to you if you do not earn income, but that’s not true. For example, the DTC can provide access to financial support such as the Canada Disability Benefit and the Registered Disability Saving Plan (RDSP) for individuals who do not earn income.
In this resource, the CRA is correcting some of the most common myths about the DTC program. This resource was specifically designed by the CRA, which is the federal agency that processes DTC applications. Within many of the answers they give for each myth, they link to other relevant information as well.
One important myth and fact that we are highlighting is Myth #6: There is nothing I can do if the CRA denied my DTC application. The fact is, if you disagree with the CRA’s decision, you have options.
If your application is denied, this CRA resource notes that you may:
- speak with a contact centre representative by calling 1-800-959-8281 to discuss your application
- request a second review of your application and submit any additional medical information that has not already been sent
- appeal the CRA’s decision by filing an income tax objection within 90 days of the date on your notice of determination. Your notice of determination will explain why your DTC application was denied.
We want to add: You may also call your local community legal clinic and seek help with appealing the denial of your DTC application. Find your local community legal clinic by typing in your postal code at this link.
Additional info for Ontario applicants using this resource:
There is nothing additional that Ontario applicants need to consider when using this resource, since the Canada Revenue Agency is a federal agency and this website resource does not include province or territory-specific information.