There’s a bundle of tax benefits for you if you file your tax returns as a person with disability (PWD), or as a parent of a child with disability in Canada. I’m sure you don’t want to miss out on the opportunity to claim hundreds or possibly thousands of dollars (CAD) in benefits and refunds every year.
In this article are 5 tax credits you can acquire as a PWD;
1. Disability Tax Credit (DTC)
The disability tax credit (DTC) is a non-refundable tax credit that helps people with physical or mental impairments reduce the amount of income tax they may have to pay.
The DTC aims to offset some of the extra costs related to the impairment. You should apply for the credit, and if approved, may claim the credit while your returns are being filed.
It is worthy to note that a medical practitioner has to certify you as a person with disability before you can be considered eligible for this tax credit.
One amazing thing about this benefit is that If you were eligible for the DTC in past years but did not claim the disability amount, you may be able to claim it going back up to 10 years.
2. Medical Expense Credit
This is yet another non-refundable tax credit that can be claimed for many eligible medical-related expenses. You can only claim the part of the expense that you or someone else have not and will not be reimbursed for.
Essentially, you have to ensure you provide certain documents needed to support your medical expenses claim. These could be; receipts, prescription bills and Disability Tax Credit Certificate.
3. Caregiver Credit
Do you have a spouse or common-law partner who supports you as a person with a physical or mental impairment? Let them know about this benefit.
The amount they can claim depends on their relationship with you, your net income, and whether other credits are being claimed for you.
4. Child Disability Benefit (CDB)
The Child Disability Benefit is a tax-free monthly payment made to families who care for a child (below the age of 18), living with a severe and prolonged physical or mental impairment. To be eligible for this credit, you must:
- Be eligible for the Canada Child Benefit (CCB)
- Your child must be eligible for the Disability Tax Credit (DTC)
If you are already getting the CCB for your child who is eligible for the DTC, there’s no need to apply separately for the CDB; as your child will be automatically considered.
Your CDB payments are calculated using the:
- Number of eligible children
- Adjusted family net income (AFNI)
- Marital status
5. Disability Supports Deduction
Another benefit you may be able to claim is the Disability Supports Deduction. This enables you deduct certain expenses that you paid in the year so you could work, go to school or do research.
However, only the person with the disability (and not their caregiver), can claim expenses for this deduction. Expenses must be claimed in the same year they are paid, as unused amounts cannot be transferred to another year.
What Next?
Don’t get crushed by the financial burden associated with disability medical care. Take advantage of the number of provisions the CRA offers to help ease the burden for you, your caregiver and spouse or common law partner supporting you.
Speak with tax experts at EMCA. Get your tax returns filed, and earn your maximum tax refund today.
