Common Questions about the Disability Tax Benefit

Common Questions about the Disabi

Canadians citizens or permanent residents with a disability who receive financial and other benefits from the federal or provincial governments also has another perk beyond simple peace of mind – a disability tax benefit, resulting in lower taxes for themselves, their dependants, and their caregivers.

In order to help clients receive the disability tax benefits they’re entitled to and maximize them to the fullest, we pride ourselves on educating people on how the system works, what eligibility means, and how to apply for benefits through the appropriate channels. Part of that process is answering common questions, among them:

• How do you define “disabled?” The Canadian government describes a disability as a physical or mental impairment that is “severe” and “prolonged,” preventing someone from returning to work regularly, or is likely to be long term and could be life threatening. And in most cases, long term means 12 months or more.

• What sort of physical or other conditions meet eligibility requirements for a disability? Many of the clients we serve can enjoy a disability tax benefit if they have problems with hearing, vision, speaking, walking, feeding, bowel or bladder functions, or dressing or performing cognitive activities necessary on a daily basis.

• Are my benefits subject to taxes? This is a key question for most people, who initially believe their benefits are tax free. Sadly, that isn’t the case.

Whatever financial assistance or other benefits are received from the federal or provincial governments are considered taxable income. But a disability tax benefit comes into play because it reduces the amount of your taxable income.

• What are the qualifications for the disability tax benefit? One of the first steps in the process to knowing whether you qualify for benefits is filing Form T2201, “Disability Tax Credit Certificate” with Canada Revenue Agency, which needs to be validated by a doctor.

Contact Us For more information visit us at

http://disabilitycreditconsultants.ca/