DEFINITION: Canada Revenue Agency Disability Tax Credit Eligibility refers to the criteria set by the Canada Revenue Agency (CRA) that individuals must meet in order to qualify for the Disability Tax Credit (DTC) in Canada.
FAQs:
1. What is the Disability Tax Credit (DTC)?
The Disability Tax Credit (DTC) is a non-refundable tax credit in Canada that is designed to provide financial assistance to individuals with prolonged and substantial impairments in physical or mental functions.
2. Who is eligible for the Disability Tax Credit (DTC)?
To be eligible for the Disability Tax Credit (DTC), an individual must have a severe and prolonged impairment in physical or mental function that significantly affects their daily life activities. This impairment must also be certified by a qualified medical practitioner.
3. What qualifies as a severe and prolonged impairment?
A severe and prolonged impairment is one that significantly limits an individual’s ability to perform basic activities of daily living for an extended period of time. This impairment can be physical or mental in nature, but it must be substantial and persistent.
4. Who can certify a disability for the Disability Tax Credit (DTC)?
A qualified medical practitioner can certify a disability for the Disability Tax Credit (DTC). This can include doctors, nurse practitioners, psychologists, and other healthcare professionals who are authorized to diagnose and treat the specific impairment.
5. How can I apply for the Disability Tax Credit (DTC)?
To apply for the Disability Tax Credit (DTC), you need to complete a DTC application form that can be obtained from the Canada Revenue Agency (CRA) website or your local tax office. The form must be filled out by both the individual with the disability and the certifying medical practitioner.
6. What other benefits are available to individuals with the Disability Tax Credit (DTC)?
In addition to the tax credit itself, individuals with the Disability Tax Credit (DTC) may be eligible for other benefits and programs such as the Registered Disability Savings Plan (RDSP), the Canada Workers Benefit (CWB), and additional provincial or territorial credits.
7. Can the Disability Tax Credit (DTC) be transferred to a family member?
Yes, the Disability Tax Credit (DTC) can be transferred to a designated family member, such as a spouse or common-law partner, for them to claim on their own income tax return. This can help maximize the overall tax savings for the family.