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: The DTC and RDSP Guide for Newcomers
Direct link to the resource: https://disabilityalliancebc.org/wp-content/uploads/2022/05/DTC-and-RDSP-Guide-for-Newcomers.pdf
Who is it meant for? Individuals and their supporters
Is it available in multiple languages and/or formats? Yes! It is available in French at this link.
Why we like it: This Guide introduces newcomers with disabilities to both the Disability Tax Credit and Registered Disability Saving Plan (RDSP) and guides them through the application process.
Applicants do not have to be Canadian citizens to claim the DTC, meaning permanent residents, refugee claimants, and refugees may qualify so long as they have significant residential ties with Canada and a Social Insurance Number.
This guide is the result of a partnership between Disability Alliance BC, Plan Institute, and the Ontario Council of Agencies Serving Immigrants (OCASI).
Additional info for Ontario applicants using this resource:
Page 10 of the Guide advises that people who need support filling out the DTC form can consult advocates at Disability Alliance BC. We suggest that people living in Ontario contact their local community legal clinic who can refer them to local organizations who may be able to help. To find your local community legal clinic, click here and type in your postal code.
Additionally, page 17 of the Guide mentions provincial grants in relation to the RDSP. Ontario does not have this grant.
For information about how ODSP and RDSP interact, check out the ODSP Policy Directives posted to the Ontario government website at this link.