The disability tax credit (DTC) is an important program for those facing severe and prolonged physical or mental impairment. You may have heard it’s too difficult to apply for the DTC or only certain conditions qualify.
Don’t let these myths stop you from applying. You may miss out on money in your pocket.
Let’s bust five common myths:
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Myth: I don’t pay taxes, so I won’t benefit from the DTC.
Fact: Being eligible for the DTC doesn’t only affect your taxes. It can help you access other federal programs like the Registered Disability Savings Plan and the Child Disability Benefit.
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Myth: The application process is difficult.
Fact: The Canada Revenue Agency has made it easier to apply. You can complete Part A of the T2201 form, which includes basic information, either online or by phone. After that, simply provide your medical practitioner with the reference number for them to fill in Part B of the form.
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Myth: Only certain conditions qualify.
Fact: With the exception of Type 1 diabetes, eligibility is not based on specific medical conditions. Instead, it is based on the effects of one or more serious, long-term physical or mental impairments.
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Myth: Receiving other disability benefits means I’m automatically eligible.
Fact: You must apply separately for the DTC and eligibility is determined independently from other benefits you may receive.
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Myth: I don’t have a doctor so I can’t apply for the DTC.
Fact: There are several types of medical practitioners who can complete and certify the effects of the impairment in Part B of the T2201 application. These include doctors, nurse practitioners, optometrists, audiologists, occupational therapists, physiotherapists, psychologists and speech-language pathologists.
Find information at canada.ca/tax-credit-disability.
