The Disability Tax credit (DTC) is a non-refundable tax credit used to reduce the income tax that you may have to pay.
Being eligible for the Disability Tax Credit can also open doors to other benefits such as the Registered Disability Savings Plan which is a long-term savings plan where the federal government puts $1000 into each year for up to 20 years plus offers a matching grant where they add more funds when someone else adds to the RDSP. Check out our RDSP info page to learn more about this benefit.
The Disability Tax credit (DTC) is a non-refundable tax credit used to reduce the income tax that you may have to pay.
Non-refundable tax credits only reduce your B.C. taxes owing to zero but won't provide a refund even if the total of the credits is higher than your B.C. taxes that you owe. This means that if you owe money when you do your tax return, having the DTC may be able to reduce the amount owing.
You can apply if:
Eligibility is not based on the medical condition itself but rather on the effects that the impairment has on a person.
Step 1
Fill out Part A of Form T2201, Disability tax credit certificate, with your basic personal information.
Step 2
Ask your medical practitioner to fill out Part B of Form T2201. A qualified practitioner may be a:
Insider Tip
Your medical practitioner may charge a fee to fill out part B of form T2201.
Step 3
Submit your fully completed and signed form. There are two ways you can submit Form T2201 and any additional documents.
Keep a copy for your records.
The CRA will confirm eligibility and review your application. You can check current processing times here.
If your application is approved, you will receive a letter which will show the year(s) that you are eligible to claim the Disability Tax Credit. You don’t need to submit a new Form T2201 each year.
**You may send the form to the CRA at any time during the year. You don't have to wait until you file your income tax and benefit return.**
For more information on the DTC and the disability amount, call 1-800-959-8281
If you're eligible for the DTC, you can claim the disability amount on line 316 of your income tax return.
The disability amount may be transferred between spouses or common-law partners on line 326.
You may also make a claim for an eligible dependant for the disability amount on line 318.
Related programs:
If you are eligible for the DTC, you may be eligible for other related programs for persons with disabilities such as:
Registered Disability Savings Plan.
Working income tax benefit disability supplement
