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Do I Qualify for the Disability Tax Credit?

What is the DTC?

The Disability Tax Credit (DTC) is one of the eligibility requirements for the Canada Disability Benefit (CDB). You must be approved for the DTC before you can receive the CDB. The DTC is a federal income tax credit for people with disabilities. It can reduce the amount of income tax that you or supporting family members owe. If you do not owe money, you will not receive any money back. You can claim the credit when you file your taxes. To apply for the DTC, you must fill out the Disability Tax Credit Certificate, also called the T2201 form.

The DTC is also part of the eligibility criteria for many other benefits. This includes the RDSP, the Canadian Dental Care Plan, the child disability benefit, an additional supplement to the Canada worker’s benefit, and for access to other tax credits and benefits like the home accessibility tax credit, and Canada caregiver credit.

To qualify for the DTC, you:

  • can be any age,

  • must be a resident of Canada for tax filing purposes, (you do not need to be a permanent resident or a Canadian citizen), and

  • must have a valid Social Insurance Number (SIN), which can be temporary or permanent.

A medical practitioner must also certify that one or more of these situations applies:

1) You have a marked restriction in at least one activity of daily living.

2) You have significant limitations in two or more activities of daily living.

3) You receive life-sustaining therapy.

The activities of daily living are as follows:

  • walking

  • mental functions

  • dressing

  • feeding

  • eliminating (using the toilet)

  • hearing

  • speaking

  • vision

1) Having a marked restriction in at least one activity of daily living means:

  • You cannot do the activity, the activity takes three times longer than someone who is a similar age without the impairment, even with the use of appropriate therapy, medication, and devices, or you need help to do the activity, AND

  • Your restriction is present almost all the time, AND

  • Your restriction has lasted or is expected to last continuously for at least one year.

Example:  

Yasmin has pain in her lower body and has severe difficulty performing tasks related to the feeding category, such as chopping vegetables, reaching ingredients, and lifting heavy items independently.

Yasmin requires frequent rests while cooking and often relies on ready-made meals. These restrictions occur substantially all of the time. Besides these symptoms, she needs to use adaptive kitchen tools and a tall chair to sit in while in the kitchen. Even with these assistive devices and pain medication, she takes at least three times as long to make and eat food as somebody her age without these restrictions.

2) Having significant limitations in two or more activities of daily living means:

  • You are restricted in two or more activities of daily living, AND

  • The combined effects of your impairments is equal to a marked restriction, AND

  • The combined limitations are present almost all the time, even with the right therapy, medication, or devices, AND

  • The restrictions have lasted or are expected to last continuously for at least one year.

Example:

Ashley lives with fibromyalgia, a chronic condition that impacts her activities of daily living, including walking, dressing, feeding, and mental functions. 

She has constant widespread pain throughout her body, gets shortness of breath, and must take breaks while walking. Even with the use of a cane, it takes her at least twice as long as another person her age without restrictions to walk 100 metres.

She often relies on help from her spouse or children when getting dressed or preparing food. She also experiences extreme fatigue in addition to her pain, which makes all movements more difficult and time consuming. When experiencing a flare-up, she has difficulty getting out of bed and requires the support of another person to walk. 

Ashley’s condition causes regular brain fog and migraines, which impair her mental functions. For example, she has some or severe limitations in going out into the community, performing basic hygiene or self-care activities, performing necessary everyday tasks, focusing on simple tasks for any length of time, absorbing and retrieving information in the short-term, and understanding and responding to verbal and non-verbal information. Because of these restrictions, Ashley qualifies for the DTC under the Cumulative Effects of Impairment.

3) You may also qualify if you need life-sustaining therapy. The following must apply:

  • The therapy is required to support a vital function, even if it only helps with symptoms. This includes patients who require dialysis, insulin, oxygen therapy, and chest physiotherapy, AND

  • You need the therapy at least twice a week, AND

  • The therapy takes an average of 14 hours each week, which affects your daily activities, AND

  • The therapy has lasted or is expected to last continuously for at least one year.

Some activities do not count towards therapy. This includes travel time to therapy, planning and preparing meals, or exercise that is not needed for medical reasons. See what counts as therapy and what does not.

Example:

Parveen has been living with lowered kidney function since 2017. In 2023, Parveen began experiencing severe fatigue, nausea, decreased appetite and weight loss, shortness of breath, and itchiness. After working with their kidney healthcare team for additional testing, Parveen was diagnosed with kidney failure and started dialysis immediately after.

Parveen was prescribed 16 hours of hemodialysis each week, consisting of four treatments that are four hours each. Since this is a vital treatment that keeps Parveen alive, they qualify for the DTC under the life-sustaining therapy category.

For more information on qualifying for the DTC visit the CRA website.