Frequently Asked Questions
What is the Disability Tax Credit?
The Disability Tax Credit (DTC) is an income tax credit provided by Canada Revenue Agency, that reduces annual income tax payable for those who qualify. The DTC can be credited to a taxpayer for past years (up to 10 years) as well as for future years (at tax filing time).
On average, the DTC amounts up to $2,000 in annual tax credit/refund. For children, under 18-year-old, an additional $1,000 per year can be applicable. The Child Disability Benefit is automatically allowed for children who are approved of the DTC, and that can amount to another $2,000 or so per year.
Who can qualify for the DTC?
Any person, of any age, who has a significant mental or physical impairment that is, or has been, present all or substantially all of the time, and that is, or has been, present for a minimum of twelve continuous months, during any period in the last ten years.
What is the difference between the Canadian Disability Tax Credit and other health related income benefits programs?
The DTC simply reduces annual income tax levels and is not an income benefit program. Income benefit programs typically provide regular payments with the intent of supporting ongoing living expenses, whereas the DTC is an annual income tax reduction credit.
How do I know if I qualify medically for the Canadian Disability Tax Credit?
The qualifying medical requirements for the DTC can be confusing. Simply contact us for a free, quick, and easy, no obligation consultation.
What if my medical condition isn’t present all or substantially all of the time?
That depends, as some medical conditions have episodes of flare-ups, or exacerbations and-the-like, that cause on going after effects. So, the condition itself may not be present but the after effects are significant enough that they warrant consideration of qualifying for the Canadian Disability Tax Credit. BMD has successfully helped many clients who were unclear with these criteria.
What if my medical condition hasn’t been present for at least 12 continuous months?
In order to qualify for the DTC a condition must be present for 12 continuous months during any period within the last ten years. Or, it must be “expected” to last for 12 continuous months, for restrictions that may not have yet actually been present for that time. It is important for potential claimants to be aware that the duration of a qualifying medical condition may be ambiguous. As an example, some individuals may be of the impression that the duration of their medical condition “began” when they were diagnosed by their medical practitioner. However, it is more accurate to consider the onset of a medical condition to be at the point in time when the significant effects began. For many people, this is sooner than when the medical practitioner had the opportunity to diagnose the condition.
What if my medical condition has improved?
As long as your condition has lasted for twelve continuous months during any period within the last ten years, you can apply.
Do I have to keep re-applying for this credit after I’ve been approved?
This depends on your specific medical condition, how your forms are completed, and if your condition improves. The majority of BMD clients do not have to re-apply once approved.
If I had been previously denied the DTC can I re-apply?
BMD highly recommends that claimants seek the advice of a DTC specialist service prior to applying for the DTC. This is due in part to the high frequency of Canadians who have applied on their own that have been denied the Canadian Disability Tax Credit or have received only a small portion of the benefit that they were due. Claimants fare better when their first application attempt is executed optimally. For those who have been denied, they can contest the decision or re-apply, however it can present a difficult challenge for individuals. As such, we recommend letting us help you apply for the DTC the first time, as claimants have a significantly higher frequency of success. If on the other hand, you were unaware of the advantages of having BMD help you the first time, and have applied on your own and were denied, give us a call and we will see if we can help.
I asked my doctor about the DTC, and he says I am not “disabled enough”, so I wouldn’t qualify (be approved by the tax department), so why should I apply?
In general, the majority of medical practitioners perceive that the qualifying criteria for the DTC are only for the severely disabled. As a result, far too many patients who qualify are being disregarded. BMD is recognized as a credible fact based source of information for the DTC, and has shown a demonstrated track record of providing relevant comprehensive information to clients and medical practitioners assisting them in certifying patients for the DTC where appropriate.
Why hasn’t my current tax preparer/accountant told me about the DTC or advised me to apply?
Tax preparers and accountants do not specialize in the DTC. They, like many medical practitioners, often perceive that the qualifying criteria for the DTC are only for the severely disabled. As such, they don’t actively recommend the DTC to all their clients who might qualify. If they do recommend it to some, it is usually limited to providing them a form and simply advising to have their doctor look it over to determine if they qualify.
Will DTC benefits put my other income benefits payments at risk?
Because the DTC is simply an income tax reduction credit, there are no associated negative financial impacts to claimants when receiving such credits. The DTC is income tax that has been reduced, so any payments of refunds to claimants would not be considered as income (other than marginal interest that is paid to claimants at the time of refunds for past years). Also, because DTC credit refunds are not considered income, refund credits do not generally threaten claimants other income or health benefit sources that are affected by outside income sources and amounts.*
*Claimants should check directly with their income benefits provider regarding benefits implications when receiving lump sum income tax credit refunds.
Should I wait until income tax time (spring) to claim this credit, since it is an income tax credit?
No, the Disability Tax Credit can be claimed anytime throughout the year. Being that prior tax credit years can be claimed, there is no need to wait until annual income tax filing time.
What fee do you charge for providing Disability Tax Credit services?
We charge absolutely nothing for the Free DTC Assessment. After the FREE DTC Assessment is completed, if it is determined that a person may qualify, and would benefit, we leave it up to the prospective client to determine if they would like our help. If our help is requested, we offer two stages of service. First stage is the Full DTC Business Case Application Package. This package contains everything a claimant would need to take to their doctor, as well as a business case letter explaining how the patient qualifies and how the doctor would need to complete their application forms. This package is offered at a flat rate fee of $100 (plus GST). Second stage is optional, where we help with a second form the doctor needs to complete 2 months after the initial application is submitted. The fee for this second stage is 22% of the benefit amount, and is only payable if the claim is approved and benefits are released to the client. It isn’t until after the client receives their credit/refund from Canada Revenue Agency that we charge this fee. As such, other than the nominal $100 Application Fee, OUR CLIENTS DO NOT PAY ANYTHING MORE UNLESS THEY SELECT OUR STAGE 2 SERVICE AND ARE SUCCESSFUL.
Will I be charged for your DTC Assessment services?
No. All DTC assessments are absolutely free!
Can a family member claim the DTC on behalf of a deceased person?
Yes. A surviving spouse, caregiver, dependent, or family member/legal executor can make a claim for the DTC on behalf of the deceased person.
I am still a bit unsure about the DTC and whether I qualify, what should I do now?
We at BMD Services understand how health benefits like the Canadian Disability Tax Credit can be confusing. The simplest way to find out if you may qualify is to complete our online Free DTC Assessment, or you can complete a contact form on our website, email us, or you can give us a quick call on our Toll Free line at 1-855-546-9199. It’s your right to know if you have money coming to you, so let us help.