Disability Tax Credit
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The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of income tax they may have to pay.
An individual may claim the disability amount once they are eligible for the DTC. This amount includes a supplement for persons under 18 years of age at the end of the year.
The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face.
Being eligible for the DTC can open the door to other federal, provincial, or territorial programs such as the registered disability savings plan, the working income tax benefit, and the child disability benefit.
Find out how you can benefit
Meet the people who may be eligible for the disability tax credit or other government programs for persons with disabilities.
Who is eligible for the DTC?
You are eligible for the DTC only if we approve Form T2201. A medical practitioner has to complete and certify that you have a severe and prolonged impairment and must describe its effects. Answer a few questions to find out if the person with the disability may be eligible.
If we have already told you that you are eligible, do not send another form unless the previous period of approval has ended or if we tell you that we need one. You must tell us immediately if your condition improves.
See Examples of impairments to show the basic differences between impairments that qualify for the DTC and those that do not.
Note
If you receive Canada Pension Plan or Quebec Pension Plan disability benefits, workers’ compensation benefits, or other types of disability or insurance benefits, it does not necessarily mean you are eligible for the DTC. These programs have other purposes and different criteria, such as an individual’s inability to work.
How to complete Form T2201?
Follow the step by step instructions on how to complete Form T2201 to apply for the DTC.
What happens once Form T2201 is received at CRA?
Follow the step by step details of the process once the form is received at CRA.
How to claim the disability amount once the DTC application is approved?
You can claim the disability amount on your income tax and benefit return once the person with the disability is eligible for the DTC.
- To claim the disability amount for yourself, see line 316.
- To claim the disability amount for your dependant, see line 318.
- To claim the disability amount for your spouse or common-law partner, see line 326.
For Full Information go to: http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/dtc/menu-eng.html#clm
