Canada’s government is consistently improving its facilities and tax benefits to help people who are less privileged or facing financial or medical issues. The Disability Tax Credit is one example. This facility allows disabled people to refund taxed amounts and use the money for their needs. Continue reading to learn more about this tax credit opportunity.
What is the Disability Tax Credit?
The Disability Tax Credit (DTC) is a non-refundable tax credit that reduces the amount of income taxes eligible Canadians are required to pay on an annual basis. It is one of the most under-utilized tax credit benefits offered by the Canadian tax system. It is estimated that less than half of the individuals who may qualify for the DTC are currently claiming the tax credit. People often believe that only severe disabilities and injuries can qualify, but this is not the case.
What is the T2201 Form?
Canada Revenue Agency (CRA) offers the Disability Tax Credit (DTC) Certificate, also known as the T2201 form. This certificate is a non-refundable tax credit that supports disabled people, guardians, or caretakers of disabled persons so that they pay less income tax.
The form requires you to meet certain requirements, such as the need to certify it by a health expert. They should be on the list of health experts eligible to certify the T2201 form. While filling and filing the form might take some time, the process is easy, and any qualified person who wants to benefit from the government’s facility can opt for it.
How to Fill out the Disability Tax Credit Certificate Form (Form T2201)
First, download the T2201 form from the CRA website. After that, you need to fill out the form carefully, as the smallest mistake can make your form ineligible to proceed. If you think you can’t fill out the form carefully, get some help from experts (like Swift Disability Services). They can help maximize your chances of getting approved and benefit from the tax credit.
Moreover, the form comes in two parts: Part A (which you or your sponsor fills) and Part B (which your medical practitioner will fill). Read further to learn what details you need to give in each part.
Before filling out this form, check the eligibility criteria of the T2201 form.
The person claiming the Disability Tax Credit should fill out and sign this part. Note that if an individual filing out the form is the same person who is claiming the credit, they need to fill out section 1 and go directly to section 3.
Details you need to provide:
- Mailing address
- Social Insurance Number (SIN)
- Your first and last name
You only need to fill this part if you don’t have enough taxable income. As this is a transferrable credit, someone else you want can claim your eligible credits.
An individual applying for the disability amount needs to give the following details.
- Social Security Number (SIN)
- First and last name
- Explanation of how you financial supper the disabled person
- Explain your relationship with the disabled person
In this section, you allow CRA or any other service to adjust your tax credits. Correctly filling this part is important to get an adequate refund after submitting the certificate.
You need to write the date and sign in this section.
As a health practitioner who will fill out this form, you need to ask them to fill it correctly so you can qualify for tax benefits. This 2 to 4 page of the Disability Tax Credit Application Form (T2201) contains basic information from your doctor. Besides that, page 5 is mandatory and greatly impacts claim results.
Note that your eligibility doesn’t depend on your condition but on the impairments and difficulties in doing regular activities that come with it. Medical experts will certify the effects of your disability in the following basic activities of life:
- Life-sustaining therapy
- Mental functions necessary for everyday life
Also, part B should be completed by one health practitioner. If you have more than one impairment, your health expert will also fill the Cumulative effect of significant restrictions part.
If your family doctor is on the CRA’s list, you can ask them to fill out the form for you. Or, you can find other doctors who can do this for you. Most experts are ready to help you, so you don’t have to go through a hassle. Make sure to ask your medical expert to assess your medical issues and get the information from you before they fill out the form. This way, the form will be more accurate and maximize your chance of getting approval.
What to do with the T2201 Form After you Have Completed it
Once you fill out the form, you can send or submit it to your nearest Canada Revenue Agency Tax Center. They will take the form and review it and get back to you around 6 to 8 weeks. In the meantime, the CRA will crosscheck your information; they will send a clarification letter to your medical expert to get more information about your health problem. This clarification letter might include 3 to 20 pages based on what CRA wants to learn about you. Once the medical practitioner sends the certificate back to CRA, the CRA will take more than 6 to 8 weeks to reach you.
Furthermore, when you get an approval, you need to wait 8 weeks more to get the credit. If there are any remaining disability credits, you are eligible to claim them on your tax return.
Keep in mind that the person qualifying for a tax credit is not necessarily the one claiming a tax credit, as they may not have taxable income. So, you can transfer your benefits to any of your family member who is supporting you. This can be a challenging process so help from experts who can make the process seamless for you.
If your T2201 form is denied, you can simply apply again with the correct information.
How Can Swift Disability Help?
The Disability Tax Credit Application offers a facility for disabled people to get their taxed amount and use the money to meet their daily needs. So, apply for the T2201 form as soon as possible, as the process can take several months.
If you’re struggling to fill the form or meet other requirements, contact Swift Disability Services. We help you every step of the way so you have the best chance of approval. Swift has a 99% success rate in getting Canadians approved, and have helped more than 4,000 Canadians in the last 3 years.
We have been helping Canadians through the difficult Disability Tax Credit application process for more than 4 years. As a result, we know how to get eligible Canadians approved. We always put the customer first and making a meaningful impact on the lives of our clients is what drives us. We work on a contingency fee basis, meaning that if we are not successful in getting our clients a refund, then there are no fees to the client.
The average Swift client receives more than $10,000 in refunds from the Canada Revenue Agency from overpaying taxes in previous years. Individuals and families can receive more than $45,000 in refunds depending on the province they live in, how long they have suffered, and their taxable income. Lack of education amongst doctors and individuals suffering with health conditions results in less than 50% success rate for Canadians who apply on their own.