DEFINITION:Disability Tax Credit Guide RC4064: This refers to the official guide provided by the Canada Revenue Agency (CRA) that outlines the eligibility criteria, application process, and other relevant information regarding the Disability Tax Credit (DTC) in Canada. It serves as a comprehensive resource for individuals with disabilities and their caregivers to understand and navigate the DTC.
FAQ 1: Who is eligible for the Disability Tax Credit (DTC)?
Answer: To be eligible for the DTC, an individual must have a severe and prolonged impairment in physical or mental functions, as determined by a qualified practitioner. The impairment should last, or be expected to last, for a continuous period of at least 12 months.
FAQ 2: How can I apply for the Disability Tax Credit?
Answer: To apply for the DTC, you need to complete Form T2201, Disability Tax Credit Certificate. This form requires you to provide information about your impairment, including its effects on your daily life. Once completed, you can submit the form to the CRA for assessment.
FAQ 3: Is the Disability Tax Credit only available to individuals with physical disabilities?
Answer: No, the DTC is available to individuals with both physical and mental disabilities. The important factor is the severe and prolonged impairment in physical or mental functions, irrespective of the specific nature of the disability.
FAQ 4: Can I claim the Disability Tax Credit for my child with a disability?
Answer: Yes, parents or legal guardians can claim the DTC for a child with a disability if the child meets the eligibility criteria. The child must be under 18 years of age and have a severe and prolonged impairment in physical or mental functions.
FAQ 5: What are the benefits of the Disability Tax Credit?
Answer: The main benefit of the DTC is that it allows individuals or their supporting persons to claim various tax credits, deductions, and benefits. These may include the Disability Amount, the Registered Disability Savings Plan (RDSP), the Child Disability Benefit (CDB), and certain provincial/territorial programs.
FAQ 6: Is the Disability Tax Credit a one-time payment?
Answer: No, the DTC itself is not a one-time payment. Instead, it provides ongoing tax relief and potential access to other financial benefits for individuals with disabilities or their supporting persons.
FAQ 7: Can I claim the Disability Tax Credit retroactively for previous years?
Answer: In certain cases, it is possible to request a retroactive application for the DTC. This allows individuals to claim the credit for previous tax years, provided they were eligible during those years. However, it is important to consult the CRA guidelines and seek professional advice to understand the stipulations and limitations of retroactive claims.