It can be tricky to know who qualifies for disability tax credit and who does not. This is because different medical conditions can qualify for different categories within the disability tax credit. Therefore, the DTC can be of great relief and equal up to $45,000 for all the claimants who qualify.
Here is a list of all the common conditions that qualify for the tax credit:
- Need for Hearing Aids
- Memory loss
- Inflammatory Bowel Disorder
- Chronic Asthma
- Chest Pain
- CFIDS (Chronic Fatigue Syndrome)
- CF (Cystic Fibrosis)
- Cervix Cancer (Cervical Cancer)
- Total Knee Joint Replacement
- Hand Joint Replacement Surgery
- Juvenile Arthritis
- Knee Bursitis (Jumpers Knee)
- Juvenile Arthritis
- Cerebral Palsy
- Bladder Cancer
- Blackout (Fainting)
- Emphysema, Chronic Bronchitis, and Colds
- Encephalitis and Meningitis
- Eneuresis (Bedwetting)
- Enlarged Prostate (Benign Prostatic Hyperplasia)
- Restless Leg Syndrome
- Lightheadedness, or Fainting
- Lip Cancer
- Liver Cancer
- Enteritis (Crohn’s Disease)
- Black Mold (Mold Exposure)
- Black Death (Plague)
- Biventricular Pacemaker
- Male Turner or Noonan Syndrome
- Malignancy (Cancer)
- Malignant Brain Lesions (Brain Lesions)
- Malignant Fibrous Histiocytoma (Bone Cancer)
- Malignant Giant Cell Tumor (Bone Cancer)
- Malignant Melanoma (Melanoma)
- AML (Leukemia)
- Alzheimer’s Disease
- Allergies (Allergy)
- Alcohol Abuse and Alcoholism
- Adrenal Insufficiency (Addison Disease)
- Adhesive Capsulitis (Frozen Shoulder)
These are just some medical conditions that qualify for Disability Tax credit. The tax department focuses on the disability your medical condition can cause. If your medical condition affects any of the following daily actions, then you are very likely to qualify for the Disability Tax Credit:
- Cognitive/Mental functions
- Feeding (Food Preparation)
What Is Disability?
There are two levels of disability categories. Let’s take a look at both of them:
The disabled group includes all the people who cannot go from day to day living and cannot perform daily activities.
The slowed group is where individuals take a significant amount of time compared to their healthy counterparts when performing daily activities.
Patients from both categories can qualify for the Disability Tax Credit and receive equal benefits. Patients need to be impaired for 12 months or expect to be impaired for this duration.
How Much Money Can You Claim For Disability Tax Credit?
The amount of the Disability Tax credit changes from year to year. For the year 2022, the claim is as follows:
Under 18 Years: $5,174
This may include the provincial and territorial disability amount, but they vary throughout the country. To easily determine the total Disability Tax Credit, you can multiply the lowest provincial and federal taxes with the provincial and federal disability amounts to get the complete Disability Tax Credit. You can also seek help from an expert to calculate the Disability Tax Credit.
How To Apply For Disability Tax Credit?
To apply for the Disability Tax Credit, you need to follow the step-to-step procedure:
Fill Out the T2201 Disability Tax Credit Form
If the claimant is disabled, the family can complete part A of the form, and the health practitioner can fill out the rest. It can depend on the disability as to who the practitioner is.
Once you fill out the form, you can submit it and wait for approval from the CRA. Once they approve, you should file your taxes.
Benefits Of The Disability Tax Credit
If your Disability Tax credit gets approval, you can enjoy many other benefits other than the claims you will receive. For example, you can also be a high priority for different territorial or provincial assistance programs. Moreover, you will qualify for programs such as the child disability benefit, working income tax benefit, and the registered disability savings plan.
Is It Possible For The Disability Tax Credit To Be Backdated?
Yes, you can go for the tax credit of the current year, or you can go as back as far as ten years. The decision for your eligibility depends on your disability and when it started to affect your life. If you are applying for previous tax years, you must include proof of disability for the years you are applying. Therefore, filling out the forms carefully is essential, so you don’t make mistakes and risk your tax credit claims.
The Disability Tax Credit can help immensely, and you do not have to worry about being labeled as disabled. All the information you provide to the government is confidential and will not be released to the general public. Only the people involved in your case will be fully aware of the specifics so that you can apply for the Disability Tax Credit without hesitation.
The benefits you get from filing for the Disability Tax Credit can be a great source of ease in troubling times. You will not face any adverse effects from applying for the Disability Tax Credit.