Are You Missing Out??
What is it?
It is firstly a refund from the government for Canadians with a health impairment or disability. The refundable portion is based on income taxes paid and can go back up to 10 years! Secondly, it is an amount that an individual can claim as a credit to reduce their taxes in the future. In both cases, the impairment first has to be certified by an appropriate medical practitioner in order for the individual to get an approved certificate from the Canada Revenue Agency (CRA).
The refund and savings are designed to recognize a person with a physical or mental challenge that impairs that person’s ability to perform one or more of the “basic activities of daily living” such as walking for example. So, if you require a cane to walk and you walk more slowly than the majority of the population or you have dementia, then your ability is markedly restricted and you may qualify for a refund and savings. The money is there to help you pay for other things you need to cope with your challenge. According to several studies of disabilities in Canada, mobility problems affect over 30% of the Canadian population over the age of 65. This makes walking the most prevalent impairment in the country. Other activities of daily living that apply are speaking, hearing, feeding, dressing, mental functions necessary for everyday life and bowel or bladder functions. Also qualifying are vision problems and life-sustaining therapies.
Who is Eligible?
To be eligible for the DTC, you must meet all three of the following conditions:
- You must have an impairment that is prolonged, which means it has lasted or is expected to last for a continuous period of at least 12 months.
- Your impairment must be severe and it must restrict you all or substantially all of the time.
- Your severe and prolonged impairment must be certified by a qualified practitioner like your family Doctor.
Note The CRA does not consider an individual’s ability to work when it is determining eligibility for the DTC.
To be eligible for a refund of any monies, you and/or your spouse must have paid taxes in the past. Since the refund is based on taxes paid, you need to have paid a minimum amount in order to make the application worthwhile.
I have heard of people who obviously qualified for the DTC, but whose doctors have told them things like “you are not disabled enough,” and refused to fill out the form so that these patients could get proper tax treatment. That is obviously not a good situation. The underlying theme may be that many medical practitioners do not understand this program well enough, they find the application process tedious and difficult, and are too busy in their professional lives that they cannot possibly give proper time and care to a DTC application.”
