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 Disability Tax Credit Help Sheet by the Disability Alliance BC
Direct link to the resource: https://disabilityalliancebc.org/wp-content/uploads/2018/03/HS14.pdf
Who is this resource meant for? Individuals or caregivers/family/friends who are applying for the Disability Tax Credit.
Is it available in multiple languages and/or formats? Yes! This resource is available in 5 languages: English (same link as above), Arabic (link), Persian (link), Punjabi (link), and Spanish (link)
Why we like it: The application checklist on pages 8-11 (English version) can help you think through the questions on the DTC form.
Before you see your doctor to ask them to complete the DTC application, it’s a good idea to prepare for your appointment. The checklist can help you do that. Bring this checklist with you to your doctor to make your conversation about the DTC easier.
This Help Sheet is also useful because it explains the potential benefits of the DTC, how to apply and qualify for the DTC, and ways to strengthen your application, and because it is available in multiple languages.
Additional info for Ontario applicants using this resource:
The DTC is a federal program, so the application info is the same no matter where you live in the country. However, this Help Sheet was designed for BC residents, and so it advises BC applicants to mail in their paper application to the CRA’s Winnipeg Tax Centre.
Ontario applicants can mail their paper applications to the CRA Tax Centre in Sudbury. This link has some details about other CRA Tax Centres, but the best source of info is the CRA. If you’re not sure where to send your paper application, get in touch with the CRA. The Government of Canada’s How to Apply for the DTC website has additional info about applications at this link.