When Caring Is a Full-Time Job There’s A Tax Credit You Shouldn’t Miss
Canada’s Disability Tax Credit (DTC) can ease the financial burden for caregivers supporting loved ones with disabilities. Learn how to qualify, transfer the credit, and claim retroactive relief.
As a primary caregiver of children with diverse needs, I know just how exhausting it can be to care for them on a daily basis. The stress, the physical labour, the tough moments, the extreme love and dedication that it takes. Along with this, I also know very well that there are costs that we incur as caregivers that are unique to our situation. That is where Canada’s Disability Tax Credit (DTC) can help.
The DTC is a federal tax credit that allows for tax breaks on individuals that are either disabled themselves or caregiving for another disabled individual. I want to stress that I realize how much time and effort it can take to get official medical diagnoses these days. Thankfully, this tax credit is not dependent on an individual’s actual diagnosis; instead, it is dependant on your lived experiences with everyday life and how your condition impacts your autonomy. It is a process to apply and qualify, but once you are eligible it will significantly reduce your income tax burden if you are disabled or care for a disabled person.
So, how would you qualify? Well, you do need a doctor to help you. There is a form available on the Canada Revenue Agency’s (CRA) Website (Form T2201) that you will work through with your doctor to determine eligibility. You are also able to apply online for this via your CRA MyAccount. Processing times are certainly faster if your doctor is willing to do the online version.
The best part? If you are a caregiver it is not always necessary that the individual you are caring for lives with you. If you are a primary caregiver that otherwise handles everything for them (including ensuring they are safely housed elsewhere, have their medications, financially dependent on you, etc) it will still be possible for the DTC to be transferred to you by that disabled dependant.
I personally live through these challenges with my family on a day-to-day basis. I know financial strain can be huge on caregivers, so every little bit can really help. If you think that you may benefit from the DTC and want to learn more I am happy to discuss it further with you. I know the process and can guide you through it all.