The Disability Tax Credit (DTC) is a non-refundable tax credit meant to help people with disabilities or their caregivers.
If you qualify, you may be able to claim the disability amount when filing your taxes. The amount may vary from year to year, so applicants should look into the current Government of Canada DTC information prior to applying.
The eligibility criteria can be a bit confusing for people applying, as well as the medical practitioners who have to certify that a person may be eligible. In fact, this has been the topic of many news stories in the past few years.
To help make things a little easier, we’ve compiled a list of medical conditions that may qualify for the Disability Tax Credit in Canada, along with information about ODSP and how seniors in Ontario can apply.
First, the DTC eligibility requirements
To be eligible, the person must meet one of the following criteria:
- the individual is blind
- suffers from a severe and long-lasting impairment in one or more eligible areas, such as walking, mental impairment, dressing, eating, hearing, vision or speaking
- is limited significantly in at least two categories, where the overall result is the same as having a marked restriction
- needs life-sustaining therapy
The person’s impairment must also meet all of the following criteria:
- be prolonged, which means the impairment has lasted, or is expected to last for a continuous period of at least 12 months
- be present all or substantially all the time, at least 90 percent of the time usually
- be certified by a certified medical practitioner when applying for the DTC
According to the Government of Canada, an individual is eligible if a physician determines that they have a serious impairment in one of the eligible categories, a major limitation in two or more categories, or require therapy for a vital function. You can review the full Disability Eligibility Requirements for more information.
It is important to note that the Disability Tax Credit is determined by the way the condition impacts someone’s everyday life and not just by the diagnosis itself. Two individuals can have the same disability, but only one can be eligible for the credit because their impairment is more serious.
10 Conditions that may qualify
Every person’s situation is unique and no two people have the exact same experience, even if they have the same condition or injury.
So while this isn’t a guaranteed or even a complete list by any means, these are among the medical conditions that may qualify for Disability Tax Credit in Canada:
- Blindness
- Severe hearing impairment
- Stroke
- Alzheimer’s disease
- Parkinson’s disease
- Kidney failure
- Diabetes
- Multiple sclerosis (MS)
- Chronic obstructive pulmonary disease (COPD)
- Arthritis, including rheumatoid arthritis or osteoarthritis
Other factors may apply when there are severe and lasting restrictions in performing daily activities. Some individuals may be considered based on restrictions concerning mobility, self-care, eating, cognitive abilities needed to perform daily activities, and life-sustaining therapy.
More information on the DTC and eligibility requirements is available on the Government of Canada website.
How to apply for the Disability Tax Credit
The first step to applying for the DTC is to complete the Form T2201, Disability Tax Credit Certificate. This form consists of a section to be filled out by the applicant and another section to be filled out by the medical practitioner.
The medical practitioner, depending on the disability, could be a doctor, nurse practitioner, optometrist, audiologist, occupational therapist, physiotherapist, psychologist or speech-language pathologist.
After submitting the form, the Canada Revenue Agency will consider the application and decide on the eligibility of the individual. The DTC can be claimed on the tax returns of the individual if they are approved. Sometimes, there might be an excess or unused amount that can be transferred to a supporting family member.
What is ODSP?
ODSP stands for the Ontario Disability Support Program. In contrast to Disability Tax Credit, which is a tax credit provided by the federal government, ODSP is a program of the province of Ontario, which can offer income support, health benefits, and employment assistance to those who are eligible.
In order to become eligible for income support through ODSP, an individual needs to be 18 years of age, a resident of Ontario, in financial need, meet asset limits and be categorized as a person with disabilities under ODSP guidelines except for the prescribed class individuals.
For seniors in Ontario, ODSP may be more complex. Most seniors receive Old Age Security, CPP, the Guaranteed Income Supplement, or some other form of retirement income. Nevertheless, Ontarians over the age of 65 who are not eligible for Old Age Security are included as one prescribed class of ODSP applicants.
ODSP Wheelchair Coverage
Sometimes, families will look into ODSP wheelchair coverage when someone from their family needs mobility support. ODSP may be able to assist with costs that cannot be covered by the Assistive Devices Program, which can be reviewed by visiting ODSP health and disability benefits
Mobility devices such as manual wheelchairs, power wheelchairs, power scooters and wheeled walkers may be covered under the Assistive Devices Program. However, the Assistive Devices Program is more likely to assist people suffering from permanent or long-term physical disabilities. More information about eligibility and the program itself can be found by visiting Ontario’s Assistive Devices Program
If a senior requires a wheelchair, walker, scooter, brace or any other device, it is recommended that they talk with a healthcare professional, ODSP caseworker or the Assistive Devices Program first before paying out of pocket.
If you qualify
The DTC can help fund the costs associated with a disability, such as home improvements to accommodate mobility issues. It can also offset the cost of in-home care services to assist with tasks such as bathing, dressing, cooking, and escorting to medical appointments – just to name a few.
If you have an ailment that affects your ability to function, it’s worth applying for the DTC. One could consider asking about ODSP, the Assistive Devices Program, Ontario Drug Benefit Coverage and tax credits along with other social services. These programs are not related to each other, and the qualification for one program does not guarantee qualification for another. Altogether, these programs can ease some of the financial pressure caused by disability and aging.