What is the Disability Tax Credit?

In the Canada Revenue Agency’s own words, “The Disability Tax Credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of income tax they may have to pay.”

Many Canadians eligible for this disability benefit aren’t even aware they may qualify for up to $50,000 from the CRA. This is due to a combination of limited awareness of the program, and for those who are familiar with the DTC, the intimidating Disability Tax Credit application process.

Applying for the Disability Tax Credit is lengthy, tedious, and precise; just a single oversight on the Disability Tax Credit certificate (Form T2201) may render the entire application ineligible.

This is evident by the Canada Revenue Agency’s own statistics, which state that approximately half a million eligible Canadians are not receiving the Disability Tax Credit.

Disability Tax Credit Eligibility

While not always straightforward, there are typically three conditions that must be met in order to qualify for the Disability Tax Credit:

Severe impairment in physical and/or mental function

Prolonged impairment for at least one year (or will persist continuously for at least one year)

Impairment must be certified by a qualified medical practitioner