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: Resources for people with diabetes who are applying for the DTC
Direct link to the resource:
Diabetes Canada website with DTC information: https://www.diabetes.ca/research-(1)/your-rights/tax-credits
Diabetes Canada resource for medical practitioners: https://www.diabetes.ca/getmedia/c1fa2e15-16dc-43ad-b708-59b5bdb9ebfa/2024-Disability-Tax-Credit-form_FINAL.pdf
Who is it meant for? Individuals living with Type 1 Diabetes, their supporters, and medical practitioners.
Is it available in multiple languages and/or formats? The Diabetes Canada website and resources do not appear to be available in French or in different formats, however they may be able to refer you to local resources on diabetes that are provided in different languages. You can find contact info for them here.
Why we like it:
As of 2021, people with Type 1 diabetes can qualify for DTC with a streamlined application. Type 1 diabetes applicants only have to submit a completed T2201 form that confirms their diagnosis. This means only Question 1 on Part B of the T2201 form needs to be completed by a doctor.
This Diabetes Canada website resource explains how that people with Type 1 Diabetes might qualify for retroactive DTC up to 10 years prior to 2021 under “life sustaining therapies”.
This resource also provides helpful information about how those living with Type 2 Diabetes and use insulin may also qualify for the DTC under “life-sustaining therapy”. They must submit to the CRA a completed T2201 tax form signed by a medical practitioner, detailing the time spent on CRA permitted activities that satisfies the average of 14 hours a week eligibility criteria. The 2021 enhanced list of permitted activities is available on the on the CRA website here.
Diabetes Canada has also created a PDF resource for medical practitioners which includes examples on how to complete the “Life-sustaining therapy” section of a T2201 form for patients who have Type 1 Diabetes. This resource can be accessed by clicking here.
Additional info for Ontario applicants using this resource:
There is nothing additional that Ontario applicants need to consider when using this resource, since Diabetes Canada is a national organization and has not included province or territory-specific information in either of these shared resources.