What is the DTC?
The DTC aims to offset additional costs related to disabilities by reducing the amount of income tax owed. While it does not provide direct payments, it can result in significant tax savings.
Non-refundable Credit: Reduces your tax payable but cannot create a refund if no taxes are owed
Retroactive Eligibility: You may claim the DTC for up to 10 prior years if eligible
How Do I Qualify for the DTC?
To qualify, the Canada Revenue Agency (CRA) must approve your Disability Tax Credit Certificate (Form T2201).
Eligibility Criteria:
You must have a severe and prolonged impairment in physical or mental functions that has lasted, or is expected to last, at least 12 months
A medical practitioner must certify your impairment on Form T2201
Examples of Eligible Impairments:
Blindness
Severe mobility issues
Mental health conditions affecting daily life activities
Marked restrictions in hearing, speaking, dressing, feeding, or managing personal care
Once your Form T2201 is approved, you can begin claiming the DTC on your tax return.