your path to accessing financial resources
The Disability Tax Credit (DTC) is a non-refundable tax credit that reduces the amount of income tax you pay each year. It also enables you to qualify for other tax deductions and in some cases, assistance programs. The intent of the DTC is to acknowledge the unavoidable limitations in income and additional expenses not faced by the average taxpayer.
To qualify, you must have a severe and prolonged mental or physical impairment, subject to approval by the Canada Revenue Agency. You must apply and be approved for the tax credit prior to filling out your tax return to be eligible for the credit.
To apply, you need to complete and submit FormT2201 to the Canada Revenue Agency. You complete Part A, and your oncologist or physician completes Part B. Some physicians charge a fee for completing this paperwork as it can take time to fill it out. Check with your physician ahead of time.
You must demonstrate in the application that your physical or mental impairment will not resolve soon and significantly impacts your ability to participate in daily activities. You are not simply verifying that you are sick – you need to demonstrate that your illness has impacted your functioning. If your application is approved, the CRA may approve it indefinitely or for a temporary period.
There are agencies that state they will help you “get approved” for the DTC. Be cautious in approaching these agencies as many will claim a significant portion of your tax credit. The DTC application is not difficult. It can be completed on one’s own. There are also community cancer and disability community organizations in some areas that can help answer your questions and guide you through the application process.