The Disability Tax Credit is a non-refundable income tax credit under the Income Tax Act.*

The tax credit is administered by the Canada Revenue Agency (CRA) and is not affiliated with other federal or provincial programs, such as the Ontario Disability Support Program (ODSP) or the Canada Pension Plan (CPP). Therefore, receiving disability benefits from any other program doesn’t necessarily mean you are will receive the disability tax credit.

A taxpayer is eligible for the disability tax credit only if a qualified practitioner certifies that he or she has a severe and prolonged impairment, subject to the CRA’s approval. Although the CRA defines disability similarly to other benefit programs, such as the CPP, the threshold is not as stringent.

If you’re given the disability tax credit, you become eligible for the Registered Disability Savings Program (RDSP). (For more details, see my prior post “A Brief Note on the Registered Disability Savings Program.”)

To apply for the disability tax credit, you need to submit a completed Form T2201, Disability Tax Credit Certificate. You can obtain a copy of the form from the CRA website. Applicants must first complete Part A of the form, and bring the form to a qualified practitioner (usually the family doctor) to have Part B completed. The completed application may be submitted at any time during the year. The CRA will review the application before your annual return is assessed.

*R.S.C. 1985, c. C-1 (5th suppl.)

Note: Please keep in mind that this article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. The law may have changed since the publication of the article.

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