There has been a lot of talk lately about the disability tax credit. You may have seen an ad in your community newspaper telling readers that they can get a considerable tax saving of $2500 per year, as well as sizable tax refund of up to $20,000 from Revenue Canada Agency (CRA). The basis of all of this is that it is dependent on a person having both a medical condition that meets the eligibility criteria for the program and taxable income enough to be able to use a tax credit. Most are skeptical of these ads, thinking that it can’t be true, that CRA will actually pay them back tax money they paid in past tax years based on the severity of their medical condition. Some will ask how is this possible and why haven’t I heard about this. Well, I can tell you that it’s true. Let me tell you a bit about the Disability tax credit program, and how it has helped thousands of Canadians save money on their income tax each as well as receive a nice tax refund.

The Disability Tax Credit (DTC) and the disability amount is a non-refundable tax credit that a person with a medical condition that meets the eligibility criteria can claim to reduce their yearly taxable income.  When determined eligible to use the credit, a person may be able to claim the credit for future use or have it applied retroactively to past tax returns.  The refund or tax reduction is based a person’s total payable tax amount and may be worth up to a $2,500 tax reduction or refund for each year they qualify.  Before applying for the disability tax credit a person must have a medical condition that meets the eligibility criteria that CRA has set out.  In assessing the medical condition, CRA looks at the effect that a person’s medical condition has on their daily activities and details specific activities that must be affected in order to be considered. The application process can be somewhat involved and may take some time to go through, but the outcome can be worth the effort.

Let me tell you my own experience with the disability tax credit. A number of years ago I went through a difficult period of time, experiencing pain in my daily activities. I had two hip replacements within an 8 month span, this after living with osteoarthritis for over 12 years prior. With help from a tax credit consultant, in 2009, I went through the disability tax credit process and received a tax refund of close to $20,000. Over the next 5 years, I was able to use the credit when I did my taxes and saw an additional $10,000 in tax savings.

Readers may ask how to go about applying for this substantial tax credit. While it is possible try and go through this process on your own, a person may be better off consulting with a professional who knows the policies and procedures that make up the disability tax credit program in order to maximize the benefits of this program. A tax credit advocate with experience at the DTC program will help clients assess their medical condition and financial situation in order to make sure they have a chance of meeting the criteria and are able to use the credit if they get it.  An initial assessment can make a big difference in determining whether or not it would be worthwhile for a potential applicant, their spouse, or family member to go through the process of trying to gain eligibility for the DTC.  Advocates help guide people through the DTC process by preparing the necessary preliminary documentation, review and submit the required paperwork to Canada Revenue Agency, follow the progress of the application from start to end, and make recommendations can help a person stay informed and involved in the process.   Where there is a problem or delay, an advocate can resolve issues and keep the process moving forward.  As a person who has gone through the disability tax credit process, I believe that each person who applies deserves the best chance of getting the Disability Tax Credit. For more information about the disability tax credit and how to apply, please feel free to call Brett Scott 1-844-453-5372