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Understanding the Disability Tax Credit

  • Writer: insync10
    insync10
  • Dec 24, 2019
  • 2 min read

So, you have been scrolling along your facebook feed, and an advertisement pops up promising thousands of dollars in back pay when you sign up with them to go after the government for unclaimed disability credits. You sign up with the promise to pay a certain percentage of whatever amount this company is able to get back for you. The message comes across; and is understood by quite a few people, that the government will be paying disability payments. You need to understand that Revenue Canada does NOT pay disability payments. The Disability Tax Credit is just that, a credit. Credits are used to reduce the amount of income tax you paid. If you paid no income tax, there is no overpaid income tax to receive. Eligibility for the Disability Tax Credit (DTC) is not based on a diagnosis, but rather on the effects of the impairment on the ability to perform the basic activities of daily living as described in the Income Tax Act. The DTC is a 'non-refundable' credit. To be eligible, there must be a severe and prolonged impairment in physical or mental functions and certified by your Doctor. The CRA reviews each application on a case-by-case basis to ensure those who qualify receive the credit. Should Revenue Canada deny your application, you can send additional information to support the application up to one year after you have submitted the first application. Ask the tax centre to review the application again with the additional information you have sent. You may also submit a new application. If you are still rejected, there is a formal process available to taxpayers if they disagree with the rejection. In any case, there is no reason to give up a certain percentage of any refund you may receive to a company promising thousands of dollars in back pay from the government. If you were about to sign up with said company STOP. This application is free to you. To make it easier, please click this link https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t2201/t2201-18e.pdf

print out the application, have your Doctor complete it. Send the completed form to the address that shows on the form, then mail it. Your Doctor may charge a fee for completing this form. If you are unable to open this file, please send us an email and we will email you a copy of the form in word format. If you have any questions, please send email us at insync@mcsnet.ca We will be more than happy to answer any questions you may have about the DTC free of charge.

 
 
 

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