Helping Canadians During COVID-19: Disability Tax Credit (DTC)

 

It’s no surprise that Canadians are facing challenges during this difficult time that is COVID-19. Families may be facing job insecurities or experiencing increases in costs for medications, medical supplies and PSWs (personal support workers).

Earlier this month Prime Minister, Justin Trudeau announced there would be increased financial support to help Canadians with disabilities offset extra expenses during the COVID-19 pandemic. This support will be available to persons who are certificate holders of the Disability Tax Credit as of June 1, 2020.

 

What is the Disability Tax Credit (DTC)?

The Disability Tax Credit is a non-refundable tax credit for persons with disabilities or their supporting person. The objective of the tax credit is to help reduce the income tax they may be required to pay.

Being eligible for the DTC can also lead to other federal, provincial, or territorial programs.

 

Who is eligible for the DTC?

To be eligible, the Government of Canada must approve your application (Form T2201, Disability Tax Credit Certificate). The form is completed by a medical practitioner who certifies the person has a severe & prolonged impairment. The effects must also be described.

According to the Government of Canada one of the four requirements must be met to be eligible:

  • “be blind
  • be markedly restricted in at least one of the basic activities of daily living
  • be significantly restricted in two or more or the basic activities of daily living (can include a vision impairment)
  • need life-sustaining therapy

In addition, the person’s impairment must meet all of the following criteria:

  • be prolonged, which means the impairment has lasted, or is expected to last for a continuous period of at least 12 months
  • be present all or substantially all the time (at least 90% of the time)”

 

What does the additional support look like?

The financial aid being provided is a one-time tax-free payment. Those that are eligible for this one-time payment will receive it automatically.

  • Canadians with a valid Disability Tax Credit certificate will receive $600
  • Canadians with a valid Disability Tax Credit certificate & eligible for the Old Age Security (OAS) pension will receive $300
  • Canadians with a valid Disability Tax Credit certificate, are eligible for the OAS pension & the Guaranteed Income Supplement (GIS) will receive $100

 

How to apply

Form T2201, Disability Tax Credit Certificate is a two-part form. Part A, to be filled out by the person with the disability and Part B, to be filled out by a medial practitioner. Once the form is received the application is reviewed by the CRA (Canada Revenue Agency). A notice of determination is sent to inform you of the decision made.

 

If you or someone you know has been denied or cut-off from disability benefits because the appropriate treatment cannot be continued for reasons related to COVID-19, or other causes, it’s important you reach out to our experts at Dye and Russell immediately.

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Skye OliverHelping Canadians During COVID-19: Disability Tax Credit (DTC)