Navigating the Disability Tax Credit Eligibility

TL;DR: The Disability Tax Credit (DTC) in Canada is available to individuals who have severe and prolonged impairments in physical or mental functions. Eligibility for the DTC isn't based on your diagnosis, but rather on the effects of your disability on your ability to perform basic activities of daily living.

The Disability Tax Credit (DTC) is a non-refundable tax credit in Canada designed to help offset the higher expenses often faced by individuals living with severe and prolonged physical or mental impairments. But who exactly is eligible for this important credit?

Eligibility for the DTC isn't determined by your specific diagnosis. Instead, it's based on the extent to which your disability affects your ability to perform basic activities of daily living. These activities include things like speaking, hearing, eating, dressing, walking, eliminating (bladder or bowel functions), and mental functions necessary for everyday life.

To qualify for the DTC, the effects of your disability must meet certain criteria defined by the Canada Revenue Agency (CRA). Specifically, your impairment must be both "prolonged," which means it's expected to last or has lasted at least 12 months, and "markedly restricted," meaning it significantly limits one or more of your basic activities of daily living all or substantially all the time.

In addition, to qualify for the DTC, your disability must be certified by a medical practitioner on Form T2201, Disability Tax Credit Certificate. The completed form must then be submitted to and approved by the CRA.

If you or a family member are living with a severe and prolonged disability, you may be eligible for valuable tax relief through the DTC. If you need help understanding the DTC or navigating the application process, please don't hesitate to contact us at Tax Heroes. Our team of tax professionals is here to guide you every step of the way.