After you apply

You will get a ‘notice of determination’ letter from the CRA. It will show which year or years you are eligible for the Disability Tax Credit. You may be approved to claim the tax credit for all the years you applied for, but you can only claim up to the previous 10 years, and for future years.

You can only claim the Disability Amount on your tax return for the years that you have been approved. If you are approved for a number of years, for example 2017-2022, you will need to reapply for the Disability Tax Credit in 2022. If you are approved without an end date, you don’t have to reapply unless the CRA asks you to reapply. Keep a copy of your old applications, so you can refer to them if you need to send in a new application.

Claiming the Disability Tax Credit

The Disability Tax Credit is a non-refundable tax credit. The amount you can claim on your tax return is called the disability amount. If you owe income taxes, the tax credit disability amount will reduce the amount of tax that you have to pay.

The notice of determination you received after you applied for the Disability Tax Credit tells you which years you can claim the disability amount on your tax return.

If you do not owe taxes and do not need to claim all or part of the tax credit, you can transfer the DTC Disability Amount to a caregiver. A family member who helps pay for your food, shelter, or clothing can claim all or part of the tax credit on their tax return.

Besides taxes, there are other benefits when you qualify for the Disability Tax Credit. It gives you access to other supports, such as the Registered Disability Savings Plan (RDSP).

Learn more: How to claim the disability amount once the DTC application is approved.

I need help doing my taxes

If you reside in Canada (but not in B.C.) and you need help but cannot pay for it, the Community Volunteer Income Tax Program (CVITP) will help people who have low incomes for free. Call 1-800-959-8281 or visit free-tax-help for the location closest to you.

If you reside in B.C., contact Tax AID DABC advocates (604-872-1278 or toll-free at 1-800-663-1278) for free help preparing your income taxes.

Benefits, supplements, and credits you can claim on your taxes once you have the Disability Tax Credit

Here is a list of supports that you are eligible for if you have been approved for the Disability Tax Credit. You must file your taxes to qualify for any of them.

Child Disability Benefit

If you are claiming the disability amount on your taxes for a disabled child under 18, you will be eligible to receive the Child Disability Benefit. This is a monthly payment from the government. It supplements (adds to) the amount of the Canada Child Benefit.

If you are already getting the Canada Child Benefit, you do not need to apply for the Child Disability Benefit. You will get it automatically, as long as you claim the disability amount for your child on your taxes.

The amount you receive is based on your income. Learn more about how much you can expect to receive from the CDB.

Canada’s Workers Benefit Disability Supplement

This is a supplement or added amount for those who qualify for both the Disability Tax Credit and the Canada Workers Benefit. The Canada Workers Benefit helps people with low incomes who get most of their money from employment.

If you qualify, the amount you receive for the Canada Workers Benefit and Disability Supplement depends on your income. It also depends on the province or territory you live in. Learn more about how much you can expect to receive from the CWB.

You must file your taxes and claim both the basic Canada Workers Benefit and the Disability Supplement. Learn more: Claim the Canada Workers Benefit.

Canada Caregiver Credit

You can claim this amount on your tax return if you care for a family member with a physical or mental impairment. It may reduce the amount of income tax the caregiver has to pay.

If the family member you care for qualifies for the Disability Tax Credit, you do not need get supporting documents from a medical practitioner.

Learn more: The Canada caregiver credit - Completing your tax return.

Medical Expenses and Disability Supports deduction

If you have the Disability Tax Credit, you can claim certain medical expenses on your tax return. This can help reduce the amount of tax that you pay or make you eligible for more benefits.

Learn more about the expenses you can claim and how to report them on your tax return: Line 21500 – Disability supports deduction

Home Buyers' Amount

This is a $10,000 credit that you can claim on your tax return to reduce the amount of taxes that you have to pay. People who have the Disability Tax Credit do not have to be a first-time home buyer to qualify for this credit.

Learn more on how to claim the Home Buyers Amount: Line 31270 – Completing your tax return.

Home accessibility renovation expenses

If you have expenses to help you gain access to and move around in your home, you can claim them on your tax return.

Childcare expenses

You can claim expenses on your tax return if you paid fees to have someone look after your child so that you could work or go to school. If you have a Disability Tax Credit for a disabled child, you can claim additional amounts.

Claiming additional amounts may affect how much you get for the Disability Tax Credit Supplemental Amount.

Education-related benefits

Tax exemptions for study such as the scholarship exemption usually require a student to be full-time. But if you have a Disability Tax Credit, you can claim some exemptions even if you study part time.

Until 2016, there was a Children’s Fitness and Art Tax Credit. It allowed you to claim up to $500 for children’s fitness and arts activities. If you had a Disability Tax Credit for a disabled child, you could claim an additional $500 after you used the first $500. This was allowed as long as you paid a further $100 in fees related to fitness and arts activities for your disabled child. Although this tax credit is no longer available, you can claim it for years before 2016.

Tax related benefits to having the Disability Tax Credit

Registered Disability Savings Plan (RDSP)

An RDSP is a savings plan to help people living with a disability save for the future. You can only open an RDSP if you are approved for the Disability Tax Credit.

The RDSP is a ‘matched savings’ plan. This means that the government will also contribute to your savings. For example, if you open an RDSP before the end of the year that you turn 49, you could qualify for up to $90,000 in grants and bonds.

Learn more about the RDSP and how to apply

Reducing tax on a trust

If you, or someone close to you has set up a trust to help with your long-term financial security, interest and other income earned on a trust fund can be taxed at very high rates. Having the Disability Tax Credit might help reduce the amount of taxes you owe on your trust earnings.

Trusts that are set up for someone approved for the Disability Tax Credit can make what is called a ‘preferred beneficiary election’. This means that earnings can be taxed according to the income tax rate of the person with a disability. If that person has a lower tax rate and wants to take money from the trust, this might be useful. It might also reduce taxes owed on a trust that is shared among family members, if the disabled beneficiary makes less than other family members.

A ‘testamentary trust’ is a trust that is set up after someone dies. If it is set up for someone who is approved for the Disability Tax Credit, it can be eligible for Qualified Disability Trust status. This status can reduce the amount of taxes owed on earnings in the trust for a particular tax year. You can only have one Qualified Disability Trust for a beneficiary. You can make a preferred beneficiary election on a Qualified Disability Trust.

Learn more from Disability Alliance BC’s Disability Tax Credit help sheet

How to maintain your Disability Tax Credit to continue your benefits

Keep your information current with Canada Revenue Agency

Make sure that the Canada Revenue Agency (CRA) has your most up-to-date information. The information at your bank or other financial institution has to match the CRA’s records. For instance, if your name, address, or gender changes, you may have trouble getting some of the benefits that come with having a Disability Tax Credit, such as RDSP grants and bonds. Call the CRA to make an update as soon as you can.

File your taxes on time

To continue to receive the Disability Tax Credit, you must file your taxes every year.

Keep your notice of determination in a safe place. Make a note of when your Disability Tax Credit expires. You can view your Disability Tax Credit information online using CRA’s My Account.

Reapplying for the Disability Tax Credit

Some people may have to reapply for the tax credit after one year, others after multiple years. If you have been approved indefinitely, you will not have to reapply until the CRA asks you to.

If you need to reapply, make sure you do it during the year in which your Disability Tax Credit expires. This will allow you to continue to claim the tax credit when it is time to file your taxes the next year.

If your Disability Tax Credit application is denied, you will get a ‘notice of determination’ letter from Canada Revenue Agency (CRA).

But you still have options. Many people get denied because the CRA needs more information. You may still have a chance to be eligible for the Disability Tax Credit.

Options for what to do if your application is denied

Option 1: Ask the CRA to review your application

This option is good to explore first. You can call the CRA to ask questions and discuss your application first. It is good if your application denial was due to missing information or contradictory information in your application. You can also ask for a review of your application. The CRA calls this a ‘request for redetermination’ or a ‘second review’. You are asking the CRA to review your application. You will need to gather more medical information and send it to support your application.

Even though there is no deadline to request a review, contact the CRA as soon as possible. The CRA can refuse your request if you take too long.

Option 2: File an objection

If you believe that CRA should have approved your application and that no additional information is needed, you can file an objection. This is a formal process to dispute the CRA’s decision. You have 90 days from the date on your notice of determination to file an objection.

You can file your objection to the Chief of Appeals online through MyAccount, by mail, or by fax. If your objection is successful, it means that a different person at the CRA will review your application again.

If CRA denies your request for a review, you can still file an appeal with the Tax Court of Canada.

You should consult an experienced advocate, accountant, or lawyer to help you with this process. Reach out to the Advocacy Access program at Disability Alliance BC, 604-872-1278 (toll-free 1-800-663-1278). Or go to the PovNet website. Click ‘Find an Advocate’.

Option 3: Reapply for the Disability Tax Credit

The CRA will consider a new application if:

• the circumstances of your disability change or
• you have new evidence they did not consider in a previous application.

Make sure that your new application includes medical information to support your eligibility.

You can reapply at any time.

Follow these steps for your denial options

Step 1: Gather all your documents

Get a complete copy of the application you submitted, including any additional questionnaires that your doctor sent on your behalf. This will help speed up the process for the following steps.

If you do not have a complete copy of your application, you can call CRA and ask that they mail you a copy.

Step 2: Reach out to an advocate

Reach out to an advocate who can help you figure out why your application was denied and guide you on the steps to take next.

Here are some reasons why an application might be denied:

The application is incomplete: You may have missing or incomplete information on your application. Some doctors are not familiar with the eligibility criteria for the Disability Tax Credit. Others may not be motivated to fill out the form on your behalf.

There are inconsistencies in the medical information: There might be conflicting evidence about your medical condition or the restrictions in your ability to function. Sometimes the CRA sends you or your doctor follow-up questions after you have applied. If the information sent in response is not consistent with your application form, the CRA can deny the application.

There is not enough information about how your impairment affects your ‘activities of daily living’: This means your doctor needs to describe in more detail how your impairment affects how you function from day to day. If you are living with more than one impairment, your doctor needs to describe their ‘cumulative effects’ – how they all work together to disable you.

The duration or severity of your impairments do not meet the requirements: ‘Duration’ means the CRA will not approve your application if your impairments are diagnosed less than 12 months before applying. Also, the CRA will not approve your application if your impairments are not severe. It defines ‘severe’ as impairments that affect your ability to perform the basic functions of daily living 90% of the time or more.

Step 3: Decide on the best next step for you

If there are inconsistencies with your medical diagnosis: There might be conflicting evidence about your medical condition or the restrictions in your ability to function. Contact your medical practitioners to ensure that your medical diagnosis is consistent between them and any of your other benefit applications.

If there is not enough information about your impairment: Ask the CRA to reconsider your application. You will need to talk to your doctor and ask them to give additional information. They must clearly describe how your impairments affect your activities of daily living. Use Access RDSP’s Disability Tax Credit Tool to help you describe your impairment. It will compile your responses into a document that you can take to your doctor.

If the duration or severity of your impairment does not meet the requirements: You would not qualify for the Disability Tax Credit at this time, but you may want to apply again in the future if your condition persists and gets worse.

If your medical situation has changed or your doctor has changed: Reapply for the DTC. You will need to wait one year before reapplying.

Step 4: Reapply, reconsider, or file an objection

If you decide to ask CRA to review your application:

Contact the CRA in writing and ask for a Request for Redetermination. You will need to provide more supporting documents from your medical practitioner. These must be documents that you have not already sent, such as updated medical reports or a letter from your medical practitioner.

You have one year to complete this process. Find an advocate to help you. Contact the Advocacy Access program at Disability Alliance BC, 604-872-1278 (toll-free 1-800-663-1278). Or go to the PovNet website. Click ‘Find an Advocate’.

If you decide to file a formal objection

You have 90 days from the date on your notice of determination to file an objection. In your letter to the Chief of Appeals, explain why you object to the decision in your notice of determination.

You should consult an experienced advocate, accountant, or lawyer to help you with this formal process. Reach out to an advocate for help by contacting the Advocacy Access program at Disability Alliance BC, 604-872-1278 (toll-free 1-800-663-1278). Or go to the PovNet website. Click ‘Find an Advocate’.

If you decide to reapply

Get a new Disability Tax Credit application form and reapply. You can reapply at any time.

Do not be discouraged if you are denied again

You can reapply at any time and there is no limit to how many times you can reapply for the Disability Tax Credit.

I need help with my denial

Disability Alliance B.C.

Find an advocate to help you. Contact Access RDSP program at Disability Alliance BC.
Local 604-872-1278 | Toll Free 1-800-663-1278 | email rdsp@disabilityalliancebc.org. Or go to the PovNet website. Click 'Find an Advocate'.

BC Aboriginal Network on Disability Society

If you are an Indigenous person in British Columbia, contact BCANDS for free one-on-one support with the Disability Tax Credit and the Registered Disability Savings Plan.

Local 250-381-7303 | Toll Free 1-888-815-5511 (TTY Accessible) | bcands@bcands.bc.ca

Plan Institute

You can contact the Plan Institute for free one-on-one support to guide you through the process of applying for the Disability Tax Credit. Toll Free helpline 1-844-311-7526 | email info@rdsp.com

Canada Revenue Agency – Individual tax inquiries line

You can call the CRA to ask questions or discuss your Disability Tax Credit application.

Within Canada or the United States, call 1-800-959-8281.

From anywhere else, collect call 613-940-8495. Contact your service provider or operator to initiate the collect call. You may hear a beep and experience a normal connection delay.

If you use a teletypewriter, call 1-800-665-0354 during regular hours of service.