Canada has well over two million people who live with disabilities and the country intended to help them to have a standard of living that is at par with the others. This is why it introduced the disability tax credit Canada in 1988. However, most of the disabled Canadians are not aware of the existence of this tax credit.
This tax credit is mainly to be claimed by a person that is physically challenged and those who do not have an enough taxable income. The same is possible to be split up with family members who usually support the challenged person. This is due to the obvious strain these people create to their families thereby giving such families a relief.
The money so realized is not to be used on services or products that are directly related to the challenge in question. It was introduced for the sole purpose of enabling the challenged people to experience financial freedom just like the fit Canadians. In order for you to access it however, you must satisfy the eligibility criteria.
It is also necessary that you must exhibit an impairment that prevents you from being capable of doing one or more activities that are part of the daily routine in your life. You must also show a marked impairment that touches on various categories under this area. The Canadian Revenue Agency mainly considers some eight areas that it has identified.
It also considers whether you need therapies to sustain your life or other conditions that are mainly compounded for a collective effect. The kind of disability you suffer from should also have existed continuously for over a year. The same should also be anticipated to continue existing for longer periods.
There are various evaluation guidelines that are prescribed by the Canadian Revenue Agency that your application will have to be evaluated on. The same criteria are applied regardless of the underlying disability. There is a certificate and a form T2201 that your physician should complete and sign in order for your disability details to be known.
The form is filled once but you can request for retroactive reimbursement for periods not more than ten years back. You might also need to re-file this form in case your circumstance changes or even the level of disability changes in a significant way or some new legislation affect your eligibility. If your original eligibility was evaluated as temporary initially and the period that you were granted expires then you should reapply in case the impairment continues.
It is important to note that there are instances when eligible disabled people are denied the tax credit due to making an omission or mistake when filling the forms. This is the reason why it would be wise to have a professional do it for you. It would ensure you reap the maximum benefits as well as avoid all the complexities and subtleties involved.
This tax credit is mainly to be claimed by a person that is physically challenged and those who do not have an enough taxable income. The same is possible to be split up with family members who usually support the challenged person. This is due to the obvious strain these people create to their families thereby giving such families a relief.
The money so realized is not to be used on services or products that are directly related to the challenge in question. It was introduced for the sole purpose of enabling the challenged people to experience financial freedom just like the fit Canadians. In order for you to access it however, you must satisfy the eligibility criteria.
It is also necessary that you must exhibit an impairment that prevents you from being capable of doing one or more activities that are part of the daily routine in your life. You must also show a marked impairment that touches on various categories under this area. The Canadian Revenue Agency mainly considers some eight areas that it has identified.
It also considers whether you need therapies to sustain your life or other conditions that are mainly compounded for a collective effect. The kind of disability you suffer from should also have existed continuously for over a year. The same should also be anticipated to continue existing for longer periods.
There are various evaluation guidelines that are prescribed by the Canadian Revenue Agency that your application will have to be evaluated on. The same criteria are applied regardless of the underlying disability. There is a certificate and a form T2201 that your physician should complete and sign in order for your disability details to be known.
The form is filled once but you can request for retroactive reimbursement for periods not more than ten years back. You might also need to re-file this form in case your circumstance changes or even the level of disability changes in a significant way or some new legislation affect your eligibility. If your original eligibility was evaluated as temporary initially and the period that you were granted expires then you should reapply in case the impairment continues.
It is important to note that there are instances when eligible disabled people are denied the tax credit due to making an omission or mistake when filling the forms. This is the reason why it would be wise to have a professional do it for you. It would ensure you reap the maximum benefits as well as avoid all the complexities and subtleties involved.
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