As per the provisions of the government, any Canadian with a significant disability is eligible for deductions on their taxes. In some cases, the individual may qualify for $2500 per year; in others, as much as $25,000 may be credited to the claimant.
However, since most people have a narrow view of disability, many do not even realize they may be eligible for tax deductions.
This guide will talk about all disabilities and lesser restrictions recognized by the Canadian government in extending theDisability Tax Credit (DTC) to the masses.
Understanding the Term ‘Disability’
The Canadian government’s 10-year comparison table shows that DTC utilization in the past decade increased from $800 million in 2011 to $1.3 billion in 2020. More and more people are coming forward to claim their rights after knowing their condition qualifies for a deduction. Does yours too?
Well, it’s essential to understand the term ‘Disability’ in this context. As per the DTC provisions, the disabled can be classified into two groups –
- Those who cannot perform any activity necessary for daily living
- The “Slowed” group or those who take a significant amount of time in getting a task done
Usually, the confusion arises with the Slowed group, who do not understand that their condition may qualify them for a deduction under DTC. Not only that but even tax advisors and the Tax Department sometimes get blindsided into believing that only severely disabled people can apply for a deduction under DTC.
Common Conditions That Qualify for Tax Deduction under DTC
If you’re wondering whether or not you can qualify for the Disability Tax Credit under the Canadian government, here are the common conditions that make you eligible –
- Hearing Impairment – If your poor hearing raises the need for hearing aids or you already wear them.
- Breathing Disorders – If you suffer from chronic asthma, sleep apnea, COPD, emphysema, or tuberculosis.
- Cognitive Issues – If conditions such as memory loss, confusion, ADHD, dementia, confusion, or depression plague you
- Digestive Disorders – If you face issues such as inflammatory bowel syndrome, Crohn’s or Colitis, Incontinence, or Prostate.
- Limited Upper Body Movement – If you face issues with your neck or back and suffer from shaky or weak hands
- Slow Walking – If the poor circulation in your body has caused osteoarthritis, foot disorders, or you suffer from knee or hip problems
No Negative Implications
It is essential to mention that DTC, as a provision, brings no negative impacts. This is simply income tax deducted, so claimants need not fear that it will threaten their other income or health benefits.
Also, some do not claim tax deductions for fear of being labeled as disabled. But this is a baseless fear. All information, forms, and applications you share to file a claim are kept confidential by the Canada Revenue Agency (CRA).
Only the Agency, you, your medical practitioner, and anyone you might have authorized will be aware of your claim and its benefits.
Make a Claim without Fear!
If you have never availed of this benefit though it may rightfully be yours, do so without any fear. Disability Tax Credit will help you and your family bear the expenses of your chronic condition.
Just ensure you have prescriptions and reports attested by a certified medical practitioner, and you will receive what is rightfully yours.