We have important updates for you about the Disability Tax Credit (DTC), a non-refundable tax credit designed to reduce the income tax that individuals with physical or mental impairments, or their supporting family members, may have to pay.
What’s New with the DTC?
The Canada Revenue Agency (CRA) has expanded the list of eligible impairments to include conditions like Type 1 Diabetes. This is a significant development, as it means more people may now qualify for the DTC. Other additions include attended care for seniors and long-term home care. Remember, without the DTC, you can’t claim attendant care as a medical expense, and these costs can add up quickly.
How Does This Affect You?
If you’re eligible for the DTC, you can claim up to 15% of the DTC amount, which is usually around $8,800 (this amount increases by about 1% each year due to inflation). This means you could receive a tax credit of approximately $1,320.
Furthermore, you can claim 15% of your medical expenses, which now include attendant care for seniors, as well as long-term home care. For example, if your attendant care costs $30,000 and your other medical expenses (like prescriptions, eye care, foot care) total $1,000, you could receive a tax credit of approximately $4,650.
Looking Backwards, Moving Forwards
Did you know you can apply for the DTC retroactively for up to 10 years? Our Tax Specialists at Bowie Financial have helped clients receive as much as $13,000 by doing this. Imagine what you could receive!
Who Can Apply?
You can apply for the DTC as young as 18 or even in your 70’s, 80’s, or older. Your eligibility is determined by your family doctor based on your impairments. Once approved, you don’t need to re-apply every year unless the CRA asks you to submit a new application.
Being approved for the DTC also opens doors to other federal, provincial, and territorial programs, such as:
Registered Disability Savings Plan
Canada Workers Benefit Disability Supplement
Child Disability Benefit
Multigenerational Home Renovation Tax Credit
If you have any questions or need assistance with your DTC application, don’t hesitate to reach out to our tax specialists at Bowie Financial. We’re here to help you navigate these changes and ensure you’re receiving the benefits you’re entitled to.
You can email our tax department directly here: email@example.com or call 613-416-2020 ext 5 – for the Tax department!