Ask an Advocate

If you're earning income, you pay a portion of what you're making in taxes to the Canada Revenue Agency (CRA), known as income tax. The DTC is an income tax credit that can help you reduce the income tax that you owe to the CRA. If you're not working, but someone who supports you is, the DTC income tax credit can be transferred to them to help them reduce the income tax that they owe.

In addition, there's other ways to benefit from the DTC too, as it may give access to other benefits, such as the Canada Disability Benefit (CDB), the Registered Disability Savings Plan (RDSP), and the Child Disability Benefit.

For more information, click here.

To qualify for the DTC, a person can be of any age, they must be a resident of Canada for tax filing purposes, and they must have a valid SIN.

Note: People of any age and any income may apply for the DTC.

A medical practitioner must certify that at least one of the following situations applies to you: 

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.

For more information, click here.

You may be eligible for the DTC if a medical practitioner certifies at least one of the following three situations for you: 

1) You have a marked reduction in 1 of the categories of activities of daily living
2) Significant limitations in 2 or more categories
3) Or receive regular life-sustaining therapy

The activities of daily living include walking, mental functions, dressing, feeding, eliminating, hearing, speaking, and vision.

1) "Marked reduction" means:

• You are unable to do the activity, or it takes 3 times longer than someone of similar age without the impairment, even with the use of appropriate therapy, medication, and devices
• AND this restriction is present all or almost all of the time (generally at least 90%)
• AND the restriction has lasted or is expected to last for a continuous period of at least 12 months

2) When 1 impairment does not meet the criteria for marked reduction, the cumulative effect of significant limitations from the combination of 2 or more impairments is considered.

"Significant limitations" means:

• The 2 or more limitations exist together all or almost all of the time (generally at least 90%)
• AND if the limitations were combined, their cumulative effect (combined impact) would be both of the following:
  • equivalent to being unable, or taking 3 times longer than someone of similar age without the impairment, to do an activity in 1 of the categories
  • present all or substantially all of the time (generally interpreted as 90% or more), even with the use of appropriate therapy, devices, and medication

3) Examples of life-sustaining therapy can include dialysis, oxygen therapy, insulin therapy, chest physiotherapy, and other therapies. 

For it to be considered "regular," it is when your therapy is needed at least 2 times per week and for an average of at least 14 hours per week.

For more information, click here

Yes. Firstly, if you don’t have taxable income yourself, you can transfer the unused credits for DTC to a caregiver. Thus, if a family member is supporting you, they can claim the DTC on their tax return, allowing them to reduce the income tax they pay. 

Additionally, as mentioned, DTC acts as a gateway to other federal benefits.

For more information, click here.

In 2024, DTC would have reduced your federal taxes by a maximum of $1,480.80. 

This is calculated in the following way by CRA: The Disability Tax Credit is $9,872 and this is multiplied by the lowest federal tax rate, which is 15%. 

$9,872 x 15% = $1,480.80

For children with disabilities, there is an additional supplement. In 2024, this was $5,758. This would again be multiplied by 15% to get the maximum amount your taxes would be reduced by. 

$5,758 x 15% = $863.70

In addition to this, a person may get additional money depending on how taxes are calculated in the province/territory they reside in. In British Columbia, the 2024 provincial disability amount was $9,435 and an additional $5,505 for children. These amounts would be multiplied by the province's lowest tax rate, which is 5.06% in BC. 

$9,435 x 5.06% = $477.41

$5,505 x 5.06% = $278.55

Example: In 2024, the DTC would have reduced your federal taxes by a maximum of $1,480.80, calculating the federal portion alone.

If you reside in BC, you would reduce your total taxes by an additional $477.41, for a total maximum of $1,958.21 of income tax savings.

In addition to this, if you also qualified for the additional child supplement, you would receive the federal portion of $863.70 and the provincial portion of $278.55, therefore altogether potentially saving a maximum of $3,100.46 on income tax.

Note: Your exact amounts may vary.

For more information, click here.

As mentioned, for 2024, the maximum amount that a person’s federal taxes could be reduced by with the DTC would be $1,480.00. 

If the person only owed $1000.00 in income tax, they could use the DTC to reduce their income tax by that whole $1000.00. However, they would not get the remaining amount refunded. This is what is meant by DTC being a non-refundable tax credit. 

Any unused portion of the DTC can be transferred to a supporting family member.

If you were eligible for the DTC in past years but did not claim it, you may be able to claim it going back up to 10 years. 

While filling out the DTC application, your doctor will indicate when your disability started. You may be eligible to claim the DTC retroactively depending on that date.

You would request the CRA for an adjustment to your tax returns for each of those years, up to a maximum of 10 years. This adjustment request is made through the T1ADJ form. 

To apply for the Disability Tax Credit (DTC), you must complete and submit Form T2201 – Disability Tax Credit Certificate to the Canada Revenue Agency (CRA). The form has two parts:

• Part A is completed by you (or your representative).
• Part B must be completed by a qualified medical practitioner who certifies your impairment.

You can submit the form online through CRA My Account, by mail, or your practitioner can submit it digitally if they use CRA’s digital services. CRA will then assess your eligibility and notify you by mail.

For more information, click here.

There is no fee to submit the DTC application to the CRA.

However, some medical professionals may charge a fee to complete Part B of the form (ranging from $50–$250+ depending on the provider and clinic). You can claim this fee as a medical expense on your tax return.

For more information, click here.

No, it doesn’t have to be just a doctor. The CRA allows different types of qualified medical practitioners to complete Part B of the form depending on the impairment category:

• Medical doctor – for all types of impairments
• Optometrist – vision
• Audiologist – hearing
• Occupational therapist – walking, feeding, dressing
• Physiotherapist – walking
• Psychologist – mental functions
• Speech-language pathologist – speaking

Make sure you consult the right practitioner for your specific condition.

The CRA approves the DTC for a person for a certain period of time, which may vary depending on the effects of the impairment. 

A person’s eligibility for the DTC may expire after a certain number of years. They will have to re-apply at the end of that period.

If you were denied DTC, it doesn't necessarily mean you don't qualify. Often times an application is denied due to a lack of information on the application. The CRA will mail you a notice of determination which will detail the reason(s) for the denial. 

As a first step, you may wish to contact the CRA to discuss to try to understand the reason for the denial further. 

You can ask the CRA for a review of your application, for which you will need to gather more medical information and send it to support your application. 

You can also choose to file an objection (a formal appeal). You have 90 days from the date on your notice of determination to file an objection to the Chief of Appeals. If the Chief of Appeals denies your application, you can escalate it to the Tax Court. 

It is best that you get the help of an advocate in submitting an appeal. 

For more information, click here.

To be eligible, you must: 

• be between the ages of 18 and 64,
• be currently approved for the Disability Tax Credit (DTC)
• have filed an income tax return for the previous tax year
• have a low to modest income

For more information, click here.

You must: 

• be a resident of Canada for the purposes of the Income Tax Act
• be a resident of Canada, which means you must be one of the following:
  1. a Canadian citizen
  2. a permanent resident
  3. a temporary resident who has lived in Canada throughout the previous 18 months 
  4. a protected person
  5. someone who is registered or entitled to be registered under the Indian Act

For more information, click here.

The income threshold is the maximum amount of income you can earn before your benefit amount is reduced. The income threshold is:

Single, divorced, widowed: $23,000 (plus up to $10,000 of working income, for a total income threshold of $33,000)

Couple: One with CDB: $32,500 (plus up to $14,000 of combined working income, for a total income threshold of $46,500)

Couple: Both with CDB: $32,500 (plus up to $14,000 of combined working income, for a total income threshold of $46,500)

If you exceed this income threshold, reduction rates apply to your monthly benefit.

For more information, click here. 

There are multiple ways to apply. 

The fastest method is applying online through the Service Canada website.

You can also apply by calling Service Canada, or by visiting a Service Canada office near you.

Lastly, you may also apply by completing a printable CDB application form and mailing it to Service Canada. You can either drop the form off at a Service Canada office or mail it to: 

Service Canada Centre
CDB Processing Centre
P.O. Box 60
Boucherville, QC J4B 5E6

There is no clawback for CDB for people receiving PWD. Meaning if a person is receiving PWD, they can also receive the federal CDB without any deductions to their PWD assistance cheques. You keep your entire PWD assistance cheque and the entire CDB cheque.

For more information, click here. 

You can get up to 24 months of retroactive payments if you were eligible during that timespan. Retroactive payments only go back to June 2025 as that is when the CDB was launched.

For more information, click here.

Yes. If you disagree with a decision about your CDB application, whether it’s about eligibility, the amount, or if you believe an error was made, you can request a reconsideration:

• You must submit a request within 180 days from the date on your decision letter.
• You can complete a Reconsideration Request Form and either:
• Drop it off at a Service Canada office
• Or mail it to: 

Service Canada Centre
CDB Processing Centre
P.O. Box 60
Boucherville, QC J4B 5E6

Reconsideration reviews should be completed within 56 calendar days, after which you'll receive a decision by mail.

If you disagree with the new decision, you can contact the Social Security Tribunal of Canada (SST) for an appeal.

For more information, click here. 

To be eligible for the RDSP, you must:

• Have a valid SIN
• Be approved for the DTC
• Be up-to-date with filing your income tax returns
• Be younger than 60 (Or younger than 50 if you want to claim grants and bonds)
• Choose a holder (the person who makes the financial decisions)

For more information, click here.

If you open an RDSP, you may be eligible to receive government grants and bonds, which can be received up until the age of 49.

Canada Disability Savings Bond: If your income is less than $37,487 per year, the federal government will put $1,000 into your RDSP each year through the CDSB.

You can receive up to a lifetime maximum of $20,000. 

You do not need to contribute anything to the RDSP to receive the CDSB.

For more information, click here.

Canada Disability Savings Grant: The CDSG works a little differently. When you (or your family or friends) deposit money into your RDSP, the federal government will also put in some money to help you save for your long-term financial security.

For the first $500: You receive $3 for every $1 contributed to your RDSP.
For the next $1,000: You receive $2 for every $1 contributed to your RDSP. 

The maximum grant for one year is $3,500. You can receive up to a lifetime maximum of $70,000.

For more information, click here.

Thus, between the Canada Disability Savings Bond and the Canada Disability Savings Grant, you can receive up to $90,000 in your RDSP from the federal government in your lifetime.

Yes, if you are under 50. When you open an RDSP, unused grant and bond amounts can be received for the preceding 10 years. The maximum unused grants you can access in one year is $10,500, and the maximum unused bonds you can access in one year is $11,000. So, it may take a few years for you to claim all the grants and bonds to which you are entitled.

For more information, click here.

Any assets held in an RDSP are considered exempt by the Ministry of Social Development and Poverty Reduction (MSDPR) for those on PWD. Payments from an RDSP are exempt as both income and assets. RDSP payments can be used for any purpose and do not impact eligibility for disability assistance.

This makes having an RDSP a great way to ensure long-term financial planning, having savings that do not affect PWD eligibility, and receiving government grants and bonds.

For those on PWD, the RDSP can also be used to transfer newly received assets into to avoid being over the asset limit in subsequent months, in a similar way that a trust is used for this purpose.

For more information, click here.

The RDSP is offered by most Canadian financial institutions.

Institutions vary in their withdrawals process and some other fees, so it's important to clarify the following set up of questions when choosing where to open an RDSP: click here.

To get the Child Disability Benefit:

• You must be eligible for the Canada Child Benefit (CCB)
• Your child must be eligible for the Disability Tax Credit (DTC)

If you're already receiving the Canada Child Benefit for your child who is eligible for the Disability Tax Credit, you do not need to apply for the Child Disability Benefit. You will get it automatically. 

For more information, click here.

For the period of July 2025 to June 2026, you could get up to $3,411 ($284.25 per month) for each child who is eligible for the DTC.

The Child Disability Benefit payments are calculated as follows:

• The number of eligible children
• Marital status
• Adjusted family net income

The payments start to be reduced when the adjusted family net income is greater than $81,222. 

For more information, click here.