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: Understanding the Disability Tax Credit – Video Presentation
Direct link to the resource: https://www.youtube.com/watch?v=53smRGJ1KDI&t=22s
Who is it meant for? Individuals and their supporters
Is it available in multiple languages and/or formats? The presentation is delivered verbally in English. You can choose to add auto-generated subtitles. Once you choose to add subtitles, you will be given an option to “Auto-translate” the subtitles into different languages. Keep in mind that auto-generated translations may be incorrect because they have not been double-checked by a human who understands the information. When in doubt, contact one of the verified organizations that provide disability benefits navigation services. Some services, like Plan Institute, offer services in other languages in addition to English and French.
Why we like it:
People learn and understand in different ways, so having a video option that explain the process of applying for the DTC verbally can be really helpful. Applying for the DTC can be an intimidating task, and not everyone has access to someone who can help explain the process or the steps.
This video presentation is straight-forward, includes clear visuals, and was produced and delivered by Disability Alliance BC for Parkinsons Society BC, both reputable organizations. Disability Alliance BC has delivered this presentation to multiple different organizations and knows the application process very well.
The video content is straight-forward, and the video can be paused, slowed down, sped up, and re-watched as many times as desired. If there is a part in the video where the information is confusing or unclear, the exact moment can be pinpointed and the video can be shared with a friend, family member, or other trusted person to help explain.
The video also includes a section on the Registered Disability Savings Plan (RDSP), which is a long-term savings plan created by the federal government to help people with disabilities and their families. Keep in mind you can only open an RDSP once you have been approved for the DTC. The RDSP part of the video starts around minute 34.
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 video was designed for BC residents, and so it includes information at the very end of the video about a grant that Ontario residents do not have access to.
Ontario residents do not have access to the Endowment 150 grant mentioned at minute 40 of the video, as this is a BC-resident specific grant.
For information about how ODSP and RDSP interact, check out the ODSP Policy Directives posted to the Ontario government website at this link.