It’s Income Tax Time!
If you qualify for the Disability Tax Credit (DTC), it is essential that you apply for the DTC along with your 2011 tax return. Even if you do not receive any income, eligibility for the Registered Disabilty Savings Plan (RDSP) will be based on whether you are eligible for the DTC. As well, the Canada Disability Savings Grants and Bond that are associated with the new RDSP will be based on the previous year’s income. For more information and how to apply for the DTC see the Planned Lifetime Advocacy Network’s blog at http://rdsp.wordpress.com
1. What is the Child Disability Benefit?
The Child Disability Benefit (CDB) is a tax-free benefit of up to $2,395 per year ($199.58 per month) for families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions
3. Who can receive the Child Disability Benefit?
Families who are eligible for the CCTB for a child will receive the CDB only if the child is also eligible for the disability amount, also known as the Disability Tax Credit.
4. My child has a disability. Is my child eligible?
Not all children with disabilities are eligible for the disability amount. To be eligible a child must have a severe and prolonged impairment in physical or mental functions. An impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months. A qualified practitioner must certify on Form T2201, Disability Tax Credit Certificate, that the child's impairment meets certain conditions. Once we receive a completed Form T2201, the CRA will advise you if the child is eligible for the disability amount and the CDB.
5. How do I apply for the Child Disability Benefit?
If you are eligible for the CCTB but you have not filed Form T2201, Disability Tax Credit Certificate, for a child who may be eligible, you must complete Part A and have Part B completed and signed by a qualified practitioner. Send the completed signed form to your tax centre. The Canada Revenue Agency (CRA) will determine whether or not you are eligible to receive the disability amount and the CDB.
You can send the form to the CRA at any time during the year. By sending them your form before you file your tax return, you may prevent a delay in your assessment.
If you have already applied for the Canada Child Tax Benefit (CCTB) for a child who qualifies for the disability amount, the CDB will be calculated automatically for the current and the two previous CCTB benefit years. Beyond these benefit years, a written request to the appropriate tax centre or tax services office will have to be submitted.
Did You Know About Disability Tax Credits:
You can claim the tax credit for your child or other family member:
You may be able to claim all or part of your dependant's disability amount (line 316) if he or she is resident in Canada and is dependent on you for all or some of the basic necessities of life (food, shelter, or clothing).
In addition, one of the following situations has to apply:
You claimed an amount on line 305 for that dependant, or you could have if you did bit have a spouse or common-law partner and if the dependant did not have any income.
The depandant was your or your spouse or common-law partner's parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew, and you claimed an amount on line 306 or line 315 for that dependant, or you could have if he or she had no income and had been 18 years of age or older in the taxation year.
You cannot claim the tax credit if:
If yu are required to make support payments for your child, you cannot claim a transfer of that child's disability amount. However, if you were separated from your spouse or common-law partner for only part of the taxation year due to a breakdown in your relationship, you can still claim an amount for that child on line 318 (plus any allowable amounts on lines 305, 306, and 315) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220. You may claim whichever is better for you.
You cannot claim this credit if the spouse or common-law partner of the person with a disability is already claiming the disability amount or any other non-refundable tax credit (other than medical expenses) for the person with a disability.
Special note: If you are splitting this claim with another individual, attach a note to your paper return including the name and social insurance number of the other individual who is making this claim. The total claimed for that dependant cannot be more than the maximum amount allowed for that dependant.
You can write off medical expenses:
While many people know they can write off expenses such as prescription medications, medical expenses encompass a whole host of items that people do not think of. This includes transportation to doctor’s appointments (keep those gas receipts!), respite care paid for out of pocket, fees paid to medical practitioners to fill out forms such as the Disability Certificate 2201 and many other expenses. A complete list can be found in the Canada Revenue Agency Guide RC4064, Medical and Disability-Related Information. A copy is available at the Autism Ontario Windsor-Essex office, online at http://www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-07e.pdf or at any CRA location.