Get the Disability Tax Benefit

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.

What is the Disability Tax credit?

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.

Am I eligible to receive the Disability Tax Credit?

You can apply if:

  • You have a severe impairment in physical or mental functions.
  • The impairment is prolonged – which means it must have lasted, or is expected to last, for at least 12 months.
  • Your abilities are restricted at least 90% of the time.
  • You are considered restricted if all, or most of the time, you are unable or it takes you an extended amount of time to perform one or more of the basic activities of daily living, even with therapy and the use of appropriate devices and medication.

Eligibility is not based on the medical condition itself but rather on the effects that the impairment has on a person.

How can I apply?

Step 1

Fill out Part A of Form T2201 https://www.canada.ca/en/revenue-agency/services/forms-publications/form... 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:

  • Medical doctor
  • Optometrist
  • Occupational therapist
  • Audiologist
  • Physiotherapist
  • Psychologist, or
  • Speech-language pathologist.

*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.

What do I do after I submit my T2201?

The CRA will confirm eligibility and review your application. You can check current processing times here https://www.canada.ca/en/revenue-agency/corporate/contact-information/ch...

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

How do I Claim the Disability Tax credit on my taxes?

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 https://www.canada.ca/en/employment-social-development/programs/disabili...
Working income tax benefit disability supplement https://www.canada.ca/en/revenue-agency/services/child-family-benefits/w...

Additional amounts for children's arts and fitness tax credits. https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-ag...

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