Understanding Disability Tax Credit Canada

By Peter Hill


There are over two million people who are disabled in Canada and this is what necessitated the country to look into ways of making their lives to be more comfortable just like for the normal people. One of the ways of achieving this feat was through the introduction of the disability tax credit Canada. Whenever you mention it you will get an audience since most people do not understand it.

This tax credit is meant for the physically challenged persons to claim if their taxable income is not adequate enough. This claim can also be used together with a family member who usually assists these persons. This is to provide a relief to them as the disabled persons usually strain them.

These funds are not supposed to be only used on products or services that affect the welfare of these people only. They were made available with the aim of helping this people to enjoy financial freedom that the normal people usually enjoy. However, there was an eligibility criteria put in place in an effort to ensure that only the deserving Canadians benefit from it.

The applicants have to prove beyond doubt that they are suffering from an impairment that makes it difficult for them to carry on their normal life duties. These should be in line with some of the categories identified by the Canadian Revenue Agency in order to be deemed eligible. These categories usually touch on eight main points that the agency considers a lot.

The agency puts into consideration the needs of a disabled person to undergo future therapies in order to sustain their lives and the other conditions that affect them. They also ensure that the kind of disability affecting such persons has been there for the past one year. This condition should also be expected to continue existing for a long period of time to come.

Generally every application that the CRA receives is usually taken through a very thorough check in an effort to make sure that they duly meet the evaluation guidelines proposed by the CRA. All applications regardless of the type of disability suffered from are subjected to the same check. The applications in this case are expected to be carried out on a special prescribed T2201 from that ought to be filled and also signed by the physician in order to provide all your details.

Currently there have been calls for reforms in the way these claims are made as most people complain that they are not worth enough. The complaints range from the complex application processes and the eligibility requirements being too restrictive. Other complains attack the CRA claiming that it turns down the applications and that some doctors also deem them not eligible at all.

CRA claims that few Canadians of the many that are eligible to claim this credit usually claim it. It seems that CRA has heard the complaints that dog this important credit process and it is considering an overhaul to put in place new regulations. This will be aimed at ensuring that more disabled Canadians have more money placed in their hands.




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