Navigating Disability with Me

Episode 12: Disability Tax Credit (DTC)

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Description

Episode 12 - Disability Tax Credit

Summary: A review of the Disability Tax Credit (DTC) and all its benefits.

Feedback: navigatingdisabilitywithme@gmail.com

Links:

  1. Government main page for DTC: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html
  2. Service Canada My Account: https://www.canada.ca/en/employment-social-development/services/my-account.html 
  3. Government Disability Benefits Navigation Services - has federal and provincial resources: https://www.canada.ca/en/employment-social-development/programs/social-development-partnerships/disabilities/organizations-benefits.html
  4. Canada Benefits Finder: https://www.canada.ca/en/services/benefits/finder.html 
  5. Disability Alliance of BC DTC Handbook - help with applying and appeals: https://mydtc.dabc.ca 
  6. Inclusion Canada - for people with intellectual disabilities: https://www.inclusioncanada.ca/page/disability-tax-credit 
  7. North Shore Disability Resource Centre: https://nsdrc.org/resource-guide/#fa Scroll down the resources page to the tax section.
  8. Federal government list of organizations that help with navigating disability benefits: https://www.canada.ca/en/employment-social-development/programs/social-development-partnerships/disabilities/organizations-benefits.html

Tips:

  1. The Disability Tax Credit (DTC) is a non-refundable tax credit. The DTC helps reduce the income tax that people with physical or mental impairments, or their supporting family members, may have to pay. It aims to offset some of the costs related to the impairment. 
  2. It is NOT an automatic cash refund, it readjusts your taxes.
  3. The DTC is also useful as it opens up access to several other federal programs to your application. This includes the RDSP, the Canadian Dental Benefit, the Canadian Disability Benefit etc.
  4. It's retroactive to the first date of your disability, as noted by your doctor/practitioner. Your taxes will be readjusted once your DTC is approved, in your CRA account.
  5. There are paper and online options to apply for the DTC.
  6. Look for a local advocacy group that can help with filling the application in. For example the North Shore Disability Resource Centre can help for free. Call 604-985-5371,
  7. You must fill in the patient portion (A), a medical practitioner (MD or Nurse Practitioner) must fill in the other portion (B) 
  8. There's a list explaining which medical practitioner is relevant to which type of disability.
  9. 9 categories of disability (walking, mental functions, dressing, feeding, eliminating, sight, hearing, life sustaining therapy) -  you must be:
    1.  severely and prolonged-ly impaired in 1, or 
    2. have significant limitations in 2 or more categories, or 
    3. receive therapy to support a vital function
  10. CRA has videos, on the pages for each type of disability, to help explain qualifying
  11. Medical practitioner may charge to fill in the DTC application 
    1. Keep receipts for all these fees (along with drugs, dental, RMT massage etc.) to submit with your taxes. List of what's eligible on CRA website.
  12. Your GP may not understand the DTC or may not know enough about your situation to know that you qualify. So make notes for your doctor. Flag the relevant sections with how they apply to you.
  13. Many people may not know that they qualify for the DTC. For example some diabetics could qualify under "life sustaining therapy".
  14. High success (acceptance) rate for DTC: 96.6% of completed and submitted applications.
  15. Only about ¼ of people eligible for the DTC submit an application.
  16. 76% of online applications are never finished.
  17. Keep paying your taxes as before until you are officially accepted for the DTC. The CRA will go back and adjust your taxes.
  18. Stated processing time is currently 10 weeks (as of Feb 2026).
  19. Wouldn't it be nice if we could have one federal application for DTC, CPPD, CDB etc.?
  20. Specialist filling in the DTC form may need to get documentation from GP/NP for confirmation of start of disability.
  21. See your doctor or NP regularly to make sure your disability and health are documented.
  22. The additional federal programs that the DTC opens you to must be applied for separately. Ex: RDSP, CDB, Canadian Dental Benefit etc. You are not automatically accepted to these.
  23. Registered Disability Savings Plan (RDSP) episode coming up with a financial planner.
  24. Be careful of people or companies who claim to help you with applying for these benefits. Many charge significant fees. CBC article: https://www.cbc.ca/news/canada/british-columbia/companies-charging-for-disability-benefit-assistance-1.7569518 
  25. Balance wait time, cost and skill level when using any organization for help with applications.