What is the Canadian Disability Tax Credit?
March 30, 2010 If you have been in a car accident, slip and fall accident, or suffer from any injury or disability you may qualify for a significant Canadian tax credit – the Canadian Disability Tax Credit.
Many injured or ill Canadians have never heard of the Canadian Disability Tax Credit. And many of those who have heard of the disability tax credit, discount it because they think it won’t apply to them. Well, read on to find out if you (or a family member on your behalf) might qualify for a significant tax credit.
What is the disability tax credit? It is a credit applied to taxes that you (or your supporting family member) may have paid over the past ten years ... yes, I did say ten years. If you have a disability that qualifies you as disabled for the purposes of this disability tax credit, then you can get a refund of up to approximately $1100 per year for the past ten years for taxes you paid. Even if you didn’t earn enough to pay any taxes, you may assign your tax credit to a family member who supported you in any way.
So, what are the disabilities that would qualify for this disability tax credit? Essentially, you qualify for the disability tax credit if you are blind or have any physical or mental illness that markedly restricts your ability to perform one or more activity of daily living including:
• Speaking
• Feeding
• Hearing
• Dressing
• Walking
• Mental Functions
• Elimination
There are many illnesses and injuries that affect one or more of these activities of daily living. Your doctor will assess the degree of disability to determine if you qualify as markedly disabled.
If your doctor determines that your illness or injury does not markedly restrict you, then you may still qualify for the disability tax credit if you are substantially restricted in two or more of the activities of daily living listed above.
It is important to know that this legal test for the disability tax credit is very different from the test to qualify you for CPP, Workers Comp, or disability insurance. The instructions to doctors are in depth and confusing. If you believe you qualify for the disability tax credit but your doctor tells you otherwise, you may wish to review with your doctor the instruction forms that go along with the Disability Tax Credit application.
If you would like to know more about the Disability Tax Credit, I will be writing several more blogs on the topic. Or you can post your questions and comments here and others as well as myself can comment on them. Many people, including the doctors who certify the disabilities, find the application forms for the disability tax credit confusing and lacking explanation. For assistance with your disability tax credit application, contact Injury Alliance. For even more information on the Disability Tax Credit, try our article, The Canadian Disability Tax Credit.
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