The DISABILITY TAX CREDIT (DTC) is a non-refundable credit offered to disabled individuals or can be claimed for dependants that are disabled. In order to claim this credit, you must pay taxes. If your payable tax is zero, applying for this credit will not produce a refund for you. Anyone can apply for the DTC and the list of accepted conditions which include Sleep Apnea, ADHD, Irritable Bowel Syndrome, MS, MD, and an endless list of approximately 500 disabilities that may qualify. When approved, if the physician who completes the application provides the date of diagnosis in the past, an individual could be looking at up to 10 years of tax dollar credits adding up to approximately $17,000.
There are many companies out there who prey on the disabled by making it appear that you need a DTC “Promoter” in order to get this credit. After years of these promoters taking up to 30% of individual’s credits, the CRA is finally trying to curb them by implementing the DTC Promoters Restrictions Act which will limit the maximum fee a promoter can charge for their services. Promoters will also claim that they can earn you up to $35,000 but that also involves investing the original $17,000. It doesn’t take a special promoter to apply for this credit – all you have to do is complete your portion of the form and have the physician who is most familiar with your condition complete his portion. The process takes roughly 3 months.
If you are already a Sauve Tax Services client, please contact me directly or visit my website at http://sauvetaxservices.ca/tax-tips-2/disability-tax-credit for more information.
If you are NOT a Sauve Tax Services client, please contact Revenue Canada at 1-800-959-8281 for more information .