DEFINITION: Revenue Canada Disability Tax Credit is a tax credit offered by the Canadian government to individuals with disabilities or their supporting family members to help offset the additional costs related to their disability.
FAQs:
1. What is the purpose of the Revenue Canada Disability Tax Credit?
The purpose of the Revenue Canada Disability Tax Credit is to provide financial assistance to individuals with disabilities or their supporting family members, aiming to help alleviate the financial burden associated with their disabilities.
2. Who is eligible to claim the Revenue Canada Disability Tax Credit?
To be eligible for the Revenue Canada Disability Tax Credit, individuals must have a severe and prolonged impairment in physical or mental functions, as certified by a qualified medical practitioner. This impairment must have lasted or is expected to last for a continuous period of at least 12 months.
3. How much is the Revenue Canada Disability Tax Credit worth?
The value of the Revenue Canada Disability Tax Credit varies depending on the severity of the individual’s disability, as determined by the medical practitioner. The tax credit is non-refundable and can be applied to reduce the individual’s overall tax payable.
4. Can a person with a temporary disability claim the Revenue Canada Disability Tax Credit?
No, the Revenue Canada Disability Tax Credit is only available to individuals with severe and prolonged impairments that last or are expected to last for at least 12 continuous months. Temporary disabilities do not qualify for this tax credit.
5. Can a supporting family member claim the Revenue Canada Disability Tax Credit?
Yes, a supporting family member can claim the Revenue Canada Disability Tax Credit if they are providing regular and substantial assistance to a person with disabilities. The supporting family member must meet the eligibility criteria and have the individual with disabilities approved for the tax credit.
6. How can I claim the Revenue Canada Disability Tax Credit?
To claim the Revenue Canada Disability Tax Credit, individuals or their supporting family members need to complete and submit Form T2201, Disability Tax Credit Certificate, to the Canada Revenue Agency (CRA). The form requires medical certification and supporting documentation to validate the impairment.
7. Are there any additional benefits available along with the Revenue Canada Disability Tax Credit?
In addition to the tax credit, individuals with disabilities may also be eligible for other benefits, such as the Registered Disability Savings Plan (RDSP) and the Canada Disability Savings Bond (CDSB). These benefits provide long-term financial support for individuals with disabilities and their families.