An Overview of the Canadian Disability Tax Credit

By: Mary Carver, P.H.Ec.

Christina Lamothe, P.H.Ec. Source: Christina Lamothe

​Christina Lamothe, P.H.Ec., is a subject matter expert with the Disability Tax Credit within the Disability Programs Section of the Canada Revenue Agency. She presented valuable information at a meeting of the Ottawa Home Economics Association (OttawaHEA) on Nov. 20, 2018.

The Disability Tax Credit, known as the DTC, is a non-refundable credit that may reduce the total income tax payable for the person with the disability, and/or may be transferred to a spouse or another supporting person, if he/she qualifies and has no taxable income.

Ms. Lamothe outlined the tax measures for persons with disabilities, the criteria for the DTC and how to apply.

2017 disability-related information booklet Source: Mary Carver, P.H.Ec.

New to the Disability Tax Credit in 2017, was that:

• In addition to Doctors, ‘Nurse practitioners’ can now certify all types of impairments on the application (Form – T2201, Disability Tax Credit Certificate) and;

 
Of further note:

• The Canada Caregiver Credit is a consolidation of non-refundable tax credits that ‘caregivers,’ can claim.
• The DTC is a credit that can be transferred from the person with the disability to another supporting person, a spouse or a dependant, and
  • It has independent definition and criteria unrelated to Canada Pension Plan Disability (CPPD), Ontario Disability Support Program (ODSP) or Workers Compensation.

• The DTC is a gateway to other related tax credits such as:
  • Child disability benefit,
  • Working income tax benefit disability supplement (WTIB),
  • Registered Disability Savings Plan (RDSP), and
  • Other programs at www.canada.ca/disability-credits-deductions 

Every February CRA updates the system with the new tax tables and any changes to the DTC and related information would also be updated at that time. The following site is the first place where the facts are up-dated:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html?utm_campaign=not-applicable&utm_medium=vanity-url&utm_source=canada-ca_disability-tax-credit

Professional Home Economists may know of a family, individual or caregiver who could potentially benefit from The Canada Revenue Agency’s Disability Tax Credit program.

If so, please pass on the information.