At Disability Credit Consultants of Canada, we take immense pride in helping disabled Canadian residents get the tax, financial, or other benefits they deserve through the Canada Revenue Service and other government agencies. All totaled, Canadian tax benefits can be a significant amount, providing the means for a disabled person to live a richer, healthier, more productive life than would otherwise be possible. Many of these same benefits are available to caregivers, too, allowing them to help a disabled loved one get access to medicine, therapy, employment services, and many other kinds of assistance.
The primary benefit of Canadian tax benefits related to the welfare of a disabled person is they reduce the amount of taxable income a person pays, with the “tax” being taken out at the end of the year when a tax return is filed, or automatically on a monthly basis as payment is received from Revenue Canada. A disabled person can claim a number of deductions to receive Canadian tax benefits, among them:
• Child care expenses. These are critical for anyone caring for a disabled child. These include the expenses the caregiver or another person paid to have someone look after the child, allowing the caregiver to work, run a business, get an education, or conduct any sort of study or research where they’ve been paid a grant.
• A number of medical expenses can be claimed at the end of each tax year, thereby resulting in even greater Canadian tax benefits. The list is immense, but some of the most common or popular deductions include: Ambulance service to or from a licensed medical facility; bathroom aids, allowing the person easier access to or from a bathtub, shower, or toilet area; braces for limbs or breast prosthesis devices; devices or services to assist a disabled person who is blind or deaf; and medical services provided by a qualified medical practitioner.
For a disabled person or someone who cares for a disabled person, it’s critical they understand the basics of how to maximize Canadian tax benefits. In order to gain the most benefit, Form T220 (the Disability Tax Credit Certificate) must be filled out in its entirety by the disabled person or someone on his or her behalf, and by a qualified medical practitioner who tends to the person on a regular basis.
Many of our clients think determining disability can be problematic, but our trained disability counselors work with each one to understand what qualifies as a disability, and how to maximize the benefits they are entitled to receive. Parents or other caregivers may qualify for the Child Disability Benefit, but for disabled adults the eligibility process is a little different. In order to qualify for Canadian tax benefits, an adult generally has to meet the following requirements:
1. The person has paid enough into the Canadian Pension Plan while being employed since the age of 18. This means the person has made payroll contributions four of the last six years or enough in three of the last six years over a 25 year stretch prior to becoming disabled.
2. The person is actually disabled, with the disability being severe and prolonged, as determined by a medical adjudicator working for the Canadian government. In plain terms, “severe” means the disability prevents the person from working or performing life sustaining tasks on a daily basis. “Prolonged” means the disability has lasted for and is expected to last for 12 months or longer, and will prevent the person from working.
Whatever situation or disability you or a loved one experiences, our trained credit counselors can help you receive the Canadian tax benefits you deserve, so contact us today.