Disability Tax Credits

MAY 8, 2013

Are you or a family member eligible?

• Is your impairment in physical or mental functions lasted, or is it expected to last, for a continuous period of at least 12 months?
• Are you blind?
• Do you receive life-sustaining therapy?
• Do the effects of your impairment cause you to be markedly restricted all or substantially all of the time (at least 90% of the time) in one or more of the following basic activities of daily living, even with the appropriate therapy, medication, and devices?
• Speaking, hearing, walking, elimination (bowel or bladder functions), feeding, dressing, or mental functions necessary for everyday life.

You may be eligible for the disability credit. Please refer to self-assessment questionnaire on page 3 of the form in the following link to determine if you qualify.

http://www.cra-arc.gc.ca/E/pbg/tf/t2201/t2201-12e.pdf

If you qualify, a doctor will need to approve the disability and sign the T2201 form. Once the form is completed by a doctor, the disability tax credit can be claimed on your personal tax return.

Tax Savings

The disability tax credit is a non-refundable tax credit that can be used to reduce your taxes payable, resulting in a maximum tax savings in 2012 of $1,799.

If you did not realize you were eligible for the disability tax credit when you filed your previous returns, you can file T1 adjustments back up to 10 years. Please contact PKBW Group for assistance.

Other tax credits related to disability:

Manitoba primary caregiver tax credit:
Manitobans who act as primary caregiver for a family member, neighbor, or friend may be eligible for a refundable income tax credit of up to $1,275 in 2012. This credit was introduced in 2009 and is available to the individuals mentioned above who provide unpaid care such as helping the person with shopping, getting to medical appointments or recreational outings. In order to claim the amount on your tax return, a form must be completed by doctor or health care worker and approved.

For more information: http://www.gov.mb.ca/finance/tao/caregiver.html

Family caregiver amount: For 2012 and subsequent years, if you have a dependent with an impairment in physical or mental functions, you may be eligible to claim an additional amount of $2,000 (maximum tax savings $300) for one or more of the following non-refundable tax credits: spouse or common-law partner amount, amount for eligible dependent, amount for children and caregiver amount. The dependent must live with you and the amount is reduced or negated if the dependent’s net income is too high. A signed statement from a doctor is also required.

For more information: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/fmlcrgvr-eng.html