DEFINITION:Canada Revenue Agency Disability (CRA Disability) refers to the support and benefits provided by the Government of Canada to individuals with disabilities. The CRA is responsible for administering disability-related programs and credits to ensure eligible individuals receive the financial assistance they need.
FAQs:
1. What is the Canada Revenue Agency Disability Tax Credit?
The Canada Revenue Agency Disability Tax Credit is a non-refundable tax credit designed to provide financial relief to individuals with disabilities and their supporting family members. It reduces the amount of income tax they need to pay.
2. Who is eligible for the Canada Revenue Agency Disability Tax Credit?
To be eligible for the Canada Revenue Agency Disability Tax Credit, you must have a severe and prolonged impairment in physical or mental functions, as certified by a qualified healthcare professional. The impairment must last for at least 12 months.
3. What other disability-related benefits does the CRA offer?
In addition to the Disability Tax Credit, the CRA provides various benefits such as the Registered Disability Savings Plan (RDSP), the Canada Workers Benefit Disability Supplement, the Child Disability Benefit, and the medical expense tax credit.
4. How do I apply for the Canada Revenue Agency Disability Tax Credit?
To apply for the Disability Tax Credit, you must complete Form T2201, Disability Tax Credit Certificate, and have it certified by a qualified healthcare professional. The completed form should be submitted to the CRA for assessment.
5. Can I claim the Disability Tax Credit for someone else?
Yes, if you are providing regular and substantial support to a person with a disability, you may be eligible to claim the Disability Tax Credit on their behalf. However, you must ensure that the person qualifies for the credit and have their consent to claim it.
6. What is the Registered Disability Savings Plan (RDSP)?
The Registered Disability Savings Plan is a long-term savings plan designed specifically for individuals with disabilities. It helps them and their families save for future financial needs with the added benefit of government contributions and grants.
7. Are disability benefits taxable?
The Disability Tax Credit itself is not taxable. However, some other disability-related benefits, such as the Canada Pension Plan Disability Benefits, may be subject to income tax depending on your overall income and circumstances.