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Disability Tax Credits

Disability Tax Credits

Disability Tax Credits

By Nizam Shajani, CPA, CA, MBA

The disability tax credit is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of tax they have to pay.  The amount includes a supplement for persons under the age of 18 years.

If you get to the point where you have a physical or mental impairment that impacts the basic activities of your daily living that is anticipated to last more than twelve consecutive months – you may qualify for the Disability Tax Credit.

Form T2201 needs to be completed by a medical practitioner who would certify that you or your dependent have a severe and prolonged impairment.

A T2201 form must be certified by medical professional and provided to CRA as part of an application.  You may be able to claim back as far as ten previous years if that is when the disability occurred.  As such, the years included on the form are important.

The credit amounts increase each year.  The following table illustrates the past ten years of credits.

Year Maximum disability amount Maximum supplement for persons under 18
2019 $8,416 $4,909
2018 $8,235 $4,804
2017 $8,113 $4,733
2016 $8,001 $4,667
2015 $7,899 $4,607
2014 $7,766 $4,530
2013 $7,697 $4,490
2012 $7,546 $4,402
2011 $7,341 $4,282
2010 $7,239 $4,223
2009 $7,196 $4,198

 

If you qualify for the disability tax credit, you may wish to consider other benefits such as the registered disability savings plan, the working income tax benefit and the child disability benefit.

 

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP