According to a 2022 Statistics Canada report, 27% of Canadians (or 8 million) have one or more disabilities. Many of these people struggle with chronic pain, limited mobility, and mental health. They may have difficulty maintaining employment, need supervised care, and face many financial challenges that push them into poverty.
To help alleviate some of the financial challenges persons with disabilities face, the Canadian government has instituted the disability tax credit.
What Is The Federal Disability Tax Credit?
The disability tax credit (DTC) is a federal non-refundable tax credit for persons with disabilities to reduce their tax burden. The credit allows the taxpayer to obtain a refund upon completion of their tax return. This tax return can be used to pay for the additional expenses required to care for a person with a disability.
Who Is Eligible For The Disability Tax Credit?
To qualify for the DTC, you must have a severe and prolonged impairment in one of the following categories, have significant limitations in two-plus categories, or be receiving life-sustaining therapy. The categories are as follows:
- Walking
- Mental functions
- Dressing
- Feeding
- Eliminating (bowel or bladder functions)
- Hearing
- Speaking
- Vision
Disability Support Available Across Canada
- The Child Disability Benefit (CDB)
- The Veterans Affairs Canada (VAC) Disability Program
- The British Columbia Disability Assistance Program
- The Ontario Disability Support Program (ODSP)
- The Nova Scotia Disability Support Program (DSP)
- New Brunswick Disability Support Program
- The Manitoba Children’s disABILITY Services (CDS) Program
- Alberta Family Support For Children With Disabilities (FSCD)
- Alberta Aids To Daily Living (AADL)
- Saskatchewan Assured Income For Disability (SAID)
How Much Can You Get With The Disability Tax Credit?
Eligible individuals can claim the following amounts for the 2023 tax year.
| Base Disability Amount | Supplement For Children | Total | |
| 18 years and older | $9,428 | N/A | $9,428 |
| 17 years and younger | $9,428 | $5,500 | $14,928 |
What Is A Disability Tax Credit Consultant?
The application process for the DTC is complex and lengthy. Overlooking even one crucial detail can be the difference between approval and rejection. It can take months to obtain permission for the credit. Even seasoned doctors and accountants have difficulty helping individuals complete the forms correctly.
For these reasons, many people don’t bother with applying in the first place, thus losing out on the significant financial benefits provided by the DTC.
Disability tax credit consultants are experts who specialize in guiding individuals through the DTC application process, ensuring each required piece of information is presented and submitted correctly. They have the knowledge and experience to maximize a person’s chances of receiving approval.
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How Do Disability Tax Credit Consultants Work?
A disability tax credit consultant can help you in several ways:
Guide You Through Filling Out The Correct Forms
Form T2201 is the form you must complete and submit to the government to secure approval for the DTC. It contains two sections. In Part A, you’ll fill out your personal details. Part B is filled out by your doctor, who must verify that you have a disability that meets the DTC eligibility criteria. Your doctor may not believe your claim is viable when, in fact, it is. A DTC consultant can communicate with your doctor and explain your eligibility. In cases where you don’t have a qualified physician to certify your disability, the DTC consultant can refer you to one who can review your file and provide the necessary assessment.
Increase Your Odds Of Approval
A DTC consultant understands the nuances of the DTC application process and can significantly increase your chances of getting approved – and in a timely manner.
Ensure You Get The Right Amount
You want to ensure you get the maximum DTC amount you’re entitled to. A DTC consultant can determine the correct amount you’re eligible to receive, not only for the current tax year but prior tax years as well.
Provide Valuable Advice
A DTC consultant will aid you along the entire DTC application process, clarifying sections of the form you may have difficulty understanding. There’s nothing worse than having your application rejected because you misinterpreted a few words in a single question. The consultant will ensure the details you provide satisfy the eligibility requirements.
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Cost of Disability Tax Credit Consultants
Like any other service, helping individuals prepare their DTC application comes with a price. If you hire a DTC consultant, expect the pay the following:
- A flat fee for determining eligibility and completing form T2201.
- A contingency fee. This fee is calculated as a percentage of the total refund received and typically varies between 15% and 40%. No contingency fee is charged if the application is unsuccessful.
However, these rates may change if the Disability Tax Credit Promoters Restrictions Act (DTCPRA) comes back into force. According to the DTCPRA, disability tax consultants can only charge:
- $100 charge for determination of eligibility of the DTC and helping to complete Form T2201.
- $100 for a DTC-related claim made on an individual’s income tax return. Plus, $100 for each year the DTC is retroactive (up to nine taxation years are allowed).
The above fees are the maximum a DTC consultant can charge for assisting individuals with their application. The capped fees don’t apply to a DTC consultant’s work helping an individual appeal a rejected application.
The fee limits also don’t affect medical professionals who aid applicants by completing Part B of form T2201. Provincial regulations and medical associations govern the fees they charge.
Should You Hire a Disability Consultant?
If you aren’t confident about completing the application on your own but feel that you would strongly benefit from the DTC, you should consider hiring a qualified DTC consultant. Until the fee limits under DTCPRA come into effect, be sure to thoroughly examine each consultant’s experience, knowledge, and most importantly, the fees they charge.
