Personal Finance

Disability Tax Credit

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Newbie
Feb 3, 2011
21 posts
NB

Disability Tax Credit

Does anyone have any positive experience with the tax companies that file the DTC info for you? Any info would be appreciated. Thanks.
38 replies
Deal Addict
Oct 9, 2005
1884 posts
230 upvotes
skitty wrote: Does anyone have any positive experience with the tax companies that file the DTC info for you? Any info would be appreciated. Thanks.

My friend did it himself. It was easy.
Deal Fanatic
User avatar
Jan 27, 2007
5116 posts
984 upvotes
T.
RFD'ers don't let RFD'ers use companies that will skim money off you for something that you can do yourself with some guidance.

Start by going to the CRA website and doing a search. That search should land you a guide. Read the guide and start filling out the paperwork. When you have questions, post back here and we can help usually.

If you are applying for the 2010 tax year, I would file first without the DTC as it usually takes awile to get all the forms signed by a Dr. etc. When they are through, amend your T1 with a T1-ADJ for 2010.
Deal Fanatic
User avatar
Jan 31, 2006
8541 posts
2655 upvotes
Toronto
Disability tax credit just double the amount of personal exemption right? if an individual get $10K exemption a person with DTC get $20K. So, you just double the amount of whatever your personal exemption.
Newbie
Feb 5, 2011
7 posts
Ontario
I have a further question in the same topic.

In 2007 my wife injured her back and went on short term disability. She used to work Full time, but now is on long term disability.

I did not file anything related to that in 2007.

In 2008, she moved to long term disability.

Again I did not file anything for that.

I am doing my 2009 returns and I am considering filing for this. But as I look at the paperwork, they seem to only want to qualify a person for the disability credit if they are blind or can't walk.

Should I even bother doing all this paperwork for my wife being off work? I don't see the point of doing several hours work getting all this filled out and signed if they are just going to reject it outright.

Can't I get a credit for supporting my wife while she's not working?

I don't know much about taxes, I have never had to make a disability claim before. I had no idea it was this much hassle.
Deal Fanatic
User avatar
Jan 27, 2007
5116 posts
984 upvotes
T.
More info on the DTC:

http://www.cra-arc.gc.ca/E/pbg/tf/t2201 ... html?=slnk

You can only claim it if the CRA certify the application. In the year you first claim the DTC (after getting your claim certified) you must paperfile your return. It is not easy to have your paperwork certified by the CRA, but unless you try it, you will never know.

As far as providing care for someone eligible for the DTC, read up on the caregiver amount. Note - you can claim the caregiver amount if the person you care for does not claim the DTC as the requirements are not as stringent, but expect to have a pre-assessment review done by CRA in the first year you claim this credit.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... u-eng.html
Newbie
Feb 5, 2011
7 posts
Ontario
Yes, I`ve seen this form. I have a copy. That`s what prompted my post in fact...

This looks like a lot of running around and mostly for permanently disabled people who are blind, deaf, or cannot even walk.

Can`t I just claim my wife as a regular dependent because she isn`t working? Didnd`t people used to do that?

Must a spouse be crippled before you can claim them on your return now?
Deal Fanatic
User avatar
Jan 27, 2007
5116 posts
984 upvotes
T.
You can transfer your wifes non-refundable tax credits, she doesn't need to be disabled to do that.

The caregiver amount would be in addition to the "regular" tranfer of her non-refundable credits. The disibility tax credit would be in addition to both of those amounts.

Did you do the questionaire on the caregiver amount on the CRA website?

Severe and prolonged is the key vebiage in claiming the DTC. It is worth a fir bit if the person in indeed eligible to claim it.
Newbie
Feb 5, 2011
7 posts
Ontario
dutchca wrote: You can transfer your wifes non-refundable tax credits, she doesn't need to be disabled to do that.

The caregiver amount would be in addition to the "regular" tranfer of her non-refundable credits. The disibility tax credit would be in addition to both of those amounts.

Did you do the questionnaire on the caregiver amount on the CRA website?

Severe and prolonged is the key verbiage in claiming the DTC. It is worth a fir bit if the person in indeed eligible to claim it.
NO I hand`t done the questionnaire. I just read through out. I just got the impression I was way out of the realm of reality reading that.

I wasn`t aware I could transfer non-refundable tax credits.. hmm.. I guess I should look into that. Shès not working right now and it dons`t look like she will be going back.

I am drowning in debt right now. :P
Deal Addict
Oct 9, 2005
1884 posts
230 upvotes
The only way you'll know for sure if she qualifies is to have her doctor fill out the form for her and send it in to the CRA. Don't worry about the years, there's a question on the form that asks the doctor when it started. If she qualifies, CRA will send a letter saying how long the certificate is valid for (and they can make it retroactive for up to 10 years), then you can go back and make adjustments to past tax filings as necessary. But this tax credit is meant for people that lose eyesight or limbs, or require someone to help them with everyday tasks such as bathing, getting dressed, eating, walking, etc.
Newbie
Feb 5, 2011
7 posts
Ontario
guessaaa wrote: The only way you'll know for sure if she qualifies is to have her doctor fill out the form for her and send it in to the CRA. Don't worry about the years, there's a question on the form that asks the doctor when it started. If she qualifies, CRA will send a letter saying how long the certificate is valid for (and they can make it retroactive for up to 10 years), then you can go back and make adjustments to past tax filings as necessary. But this tax credit is meant for people that lose eyesight or limbs, or require someone to help them with everyday tasks such as bathing, getting dressed, eating, walking, etc.


OK, thank you, that does help confirm for me. I seriously doubt she would qualify, but I guess I could put the time in and see what happens. Just looks like a lot of running around... And my wife really takes it personally when she applies for something and gets rejected... don`t need any drama right now. :O

I guess the doctors know these forms and could help give me an idea if we are wasting our time there too.. I can`t imagine he would fill it out if he knows it won`t pass... :)
Deal Addict
Aug 1, 2005
1705 posts
61 upvotes
Windsor
Being deaf, I qualify for(and have) the DTC, and no, you don't need or want a company to do it for you... It's a simple T2201 form.. There are MANY scammers.. anytime you find info on the DTC and there's an open forum/comment form you'll usually find a "hi, i don't work for these people but they saved me $XXXX, and $URL is great!"

Your doctor/audiologist/whoever will fill out the form.. If the gov't has any questions, they'll contact the doctor themselves.

You gain a federal tax credit of about 7300 this year and the provincial one varies from 4800 to 13000 depending on province, and you can transfer any unused parts. You can apply for the credit for up to when it started, or 10 years back, whichever is shorter. Once you get the credit then you do a T1 Adjustment for your previous years. The gov't will mail you a pile of envelopes and a check(or direct deposit i suppose).. Mine took a few months from the time I sent the form in.

Don't forget to look into the RDSP(registered disability savings plan) once you have the DTC.. If your income is low enough the gov't will match 3:1 or something similar, and provide up to $1000 a year for the first 20 years, and will match the first 500 if it's over their limit. Very similar in layout to the TFSA, and if i remember right there's only a $200,000 limit on it, no yearly limits. Again, many scammers out there trying to "help" people get the RDSP, which is even easier than the DTC to be setup with.. it's basically the same as setting up a new bank account.

Don't forget to do a TD1ON or whatever your provincial equivalent is to update your deductions so you don't end up with a huge tax refund at the end of the year.
Newbie
Feb 5, 2011
7 posts
Ontario
dutchca wrote: You can transfer your wifes non-refundable tax credits, she doesn't need to be disabled to do that.
I always thought there was some advantage tax wise to having your spouse as a dependent. I don`t see any deduction here for having a spouse at home who earns no income.

Not sure where I would indicate I am transferring non-refundable tax credits. She has no tax credits other than her base amount which is 8800 or so.. Can I claim that on my return?
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Cancel the above, I think I found it.. ON Schedule 2

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Ah crap.. It doesn`t look like I am gettin anything out of that.... Maybe I am mistaken. I always thought spouses with a spouse at home got 8K or so knocked off their taxable income.. but that may just be in my head. lol
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
wgf wrote: I always thought there was some advantage tax wise to having your spouse as a dependent. I don`t see any deduction here for having a spouse at home who earns no income.

Not sure where I would indicate I am transferring non-refundable tax credits. She has no tax credits other than her base amount which is 8800 or so.. Can I claim that on my return?
-----

Cancel the above, I think I found it.. ON Schedule 2

-----

Ah crap.. It doesn`t look like I am gettin anything out of that.... Maybe I am mistaken. I always thought spouses with a spouse at home got 8K or so knocked off their taxable income.. but that may just be in my head. lol


You get the spousal credit, both federally & provincially. It is the same as the basic personal exemption.

You don't get 8K off your taxable income. The credit effectively means that you don't pay tax on ~$10K of your income. Federally that means about $1500 less you will pay.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Newbie
Feb 5, 2011
7 posts
Ontario
ok that sounds like a good deal, i just have to figure out how to enter that on these forms correctly lol
Newbie
Feb 3, 2011
21 posts
NB
Thank you for those who responded. I will be doing my paperwork myself, along with my family dr. There is an article on CBC website today, that convinced me to do it myself. The unfortunate thing is that there are probably people who do qualify & just happened to use the company being investigated, & now they have to deal with the stress of the situation. Just what someone with a disability doesn't need.

http://www.cbc.ca/canada/story/2011/02/ ... laims.html
Newbie
Mar 2, 2011
3 posts
Ontario
We applied last year for the DTC. We were not deemed eligible last year but because my wife started peritoneal dialysis last Feb. we were deemed eligible for the 2010 to 2017 years. You have to reapply after the term has expired for reevaluation. If your spouse who is disabled does not work and you want to transfer the DTC to yourself make sure you fill in the section on Form T2201 titled "Information about the person claiming the disabilty amount (if different from above)". We did not and when I tried to Netfile my return , it does not allow me to, as the account I am trying to transfer the DTC from does not show me as eligible for transfer. When I contacted them they told me that I have to paper file my return again and attach a letter from my spouse stating she wants to transfer the DTC to her spouse. You must include all SIN numbers,all names, date the letter and have your spouse sign it.
Now my little Beef . Why would they allow a tax credit for disabled persons and not allow transfer of the DTC to your spouse automatically? Most but not all people who are eligible for the DTC would be on disability pensions and probably not making enough taxable income to have the DTC make any difference on their tax payable.My understanding was the DTC was created to help offset expenses that disabled persons face that normal taxpayers would not. Does a disabled persons spouse not incur these same costs?
One more beef. Probably not the right forum for this but... when I contacted my MP to inquire about automatically transfering the DTC , I was told " I don't work for Revenue Canada..." WHAT!!!!??? I guess they don't need my vote do they?
Deal Addict
Oct 9, 2005
1884 posts
230 upvotes
jake12345 wrote: One more beef. Probably not the right forum for this but... when I contacted my MP to inquire about automatically transfering the DTC , I was told " I don't work for Revenue Canada..." WHAT!!!!??? I guess they don't need my vote do they?

Tell them that they have a special contact number for CRA and can ask questions on your behalf. That's what they get paid to do.

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