Explanation On Why Disability Tax Credit For Canadians Is Important.
The disability tax credit is available to all Canadians, regardless of age, who have a physical or mental impairment which is expected to last more than 12 months. If you have a child under 18 with an impairment the amount of the credit is higher than it would be for an adult and while a tax credit only applies against income earned it is transferable to the parents. This tax credit helps offset some of the costs incurred by the individuals, it is also transferable between spouses.
Many people are unaware of the credit and we, MSH Accounting make it a habit to mention the credit to new and existing clients, especially if they have a life sustaining therapy requirement, such as type 1 insulin dependency (Diabetes), or some other visible impairment. The form itself called the T2201 Disability Tax Credit Certificate, available on-line, and the first page is about you and the balance of the form is completed by your physician. Once the form is complete it is forwarded to Canada Revenue Agency for approval. You will receive a letter of approval and it will detail the number of years it will be in effect. Canada Revenue will now process all the adjustments to your file and send you the refund. This is a welcome change as up until last year they would request the taxpayer to complete the T1-adjustments for each year.
MSH Accounting keeping our clients informed.
If you need more information on the Disability Tax Credit or Accounting contact us now.