DEFINITION:
Canada Disability Tax Credit for Learning Disabilities: The Canada Disability Tax Credit (DTC) is a tax benefit provided by the Government of Canada to individuals who have a severe and prolonged disability that restricts their ability to perform everyday activities. This tax credit is also available to individuals with learning disabilities, which can include conditions such as dyslexia, ADHD, and cognitive impairments, among others.
FAQs:
1. What is the Canada Disability Tax Credit for Learning Disabilities?
The Canada Disability Tax Credit for Learning Disabilities is a tax benefit provided to individuals with learning disabilities, allowing them to claim a non-refundable tax credit on their income tax return.
2. Who is eligible for the Canada Disability Tax Credit for Learning Disabilities?
To be eligible for the tax credit, individuals must have a severe and prolonged learning disability that significantly restricts their ability to perform the activities of everyday life. This disability must be certified by a qualified medical practitioner.
3. How do I apply for the Canada Disability Tax Credit for Learning Disabilities?
To apply for the tax credit, you must complete and submit a Disability Tax Credit Certificate (Form T2201) to the Canada Revenue Agency (CRA). This form must include medical documentation verifying your learning disability.
4. What expenses can be claimed under the Canada Disability Tax Credit for Learning Disabilities?
You can claim eligible expenses related to your learning disability, such as tutoring, specialized educational services, and assistive devices. However, please note that not all expenses may qualify for the tax credit, so it is important to consult with a tax professional or the CRA for specific details.
5. Can I transfer the Canada Disability Tax Credit for Learning Disabilities to a family member?
Yes, in certain circumstances, you may be able to transfer all or a portion of your unused disability tax credit to a supporting family member. This can help reduce their tax payable and provide additional financial support.
6. Is the Canada Disability Tax Credit for Learning Disabilities a refundable credit?
No, the Canada Disability Tax Credit for Learning Disabilities is not a refundable credit. This means that it can only be used to reduce the amount of tax you owe. If the credit exceeds your tax liability, any remaining amount cannot be refunded to you.
7. Can I claim the Canada Disability Tax Credit for Learning Disabilities retroactively?
Yes, you can request a retroactive application for the tax credit if you were eligible during past tax years but did not claim it. The CRA allows you to go back up to 10 years when applying for a retroactive DTC certificate.