Everything You Need to Know About the Canada Disability Tax

May 3, 2022 | Written by: Sohail Afzal

Everything you need to know about the Canada disability tax

If you are a Canadian citizen with a disability, you may be eligible for the Canada Disability Tax Benefit. It is a tax credit that helps people with disabilities and their families cover some of the costs associated with disability. In this blog post, we will discuss who can benefit from the CDTB, what is covered by it, and how to apply for it. We will also provide some tips on accounting for disability-related expenses. Let’s get started!

Who Can Benefit from the CDTB?

The CDTB is available to Canadian citizens who have a severe and prolonged impairment in physical or mental functions. To be eligible, you must meet all of the following criteria:

  • You must have a severe and prolonged impairment in physical or mental functions.
  • Your impairment must be present all or substantially (at least 90% of the time).
  • Your impairment must be certified by a qualified medical practitioner.

If you meet these criteria, you may be eligible for the Canada Disability Tax Credit. This credit can help offset some of the costs associated with your disability, including medical expenses, special equipment, and home adaptations. The credit is also available to families who care for a loved one with a disability.

What Is Covered by the CDTB?

The CDTB covers a wide range of expenses related to disability. Some of the most common expenses that are covered include:

  • Medical expenses: This can include costs of prescription drugs, medical devices, and certain therapies.
  • Special equipment: This can include the cost of items such as mobility aids, computer equipment, and adaptive devices.
  • Home adaptations: This can include modifications to your home that make it more accessible or accommodating for your needs.

If you have incurred any of these expenses due to your disability, you may be able to claim them on your taxes. The CDTB can help offset some of the costs associated with your disability, making it easier to manage your finances.

How to Apply for the CDTB

If you think you may be eligible for the CDTB, the first step is to contact a qualified medical practitioner. They will need to complete a Disability Tax Certificate (DTC) for you to apply for the credit. Once you have received your DTC, you can submit it along with your tax return. If you are approved for the credit, you will receive a refundable tax credit that you can use to offset some of your disability-related expenses.

When it comes to managing your finances and claiming benefits like the CDTB, it’s important to work with a qualified accounting firm. We have a team of tax experts at our accounting firm who can help you navigate the process and maximize your benefits. Contact us today to learn more about how we can help you!

Conclusion

If you are a Canadian citizen with a disability, the Canada Disability Tax Benefit may be able to help you cover some of the costs associated with your disability. In this blog post, we have discussed who can benefit from the CDTB, what is covered by it, and how to apply for it. We have also provided some tips on accounting for disability-related expenses. If you think you may be eligible for the CDTB, contact us today to learn more about how we can help you maximize your benefits!

Sohail Afzal CPA Toronto

Sohail Afzal, CPA, CMA, MBA

Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.

Article Categories

Contact Us

  • This field is for validation purposes and should be left unchanged.

Recent Articles