Canadian Disability Tax & Refund

What Is Disability Tax Credit ?

The Disability Tax Credit (DTC) is a federal tax credit that helps reduce income tax for people with disabilities or their supporting family members. You must be approved for the DTC to qualify for the Canada Disability Benefit (CDB).

To apply, your doctor must complete the T2201 Disability Tax Credit Certificate, which you submit to the CRA. If approved, you can claim the credit when filing your taxes.

NOTE: If you don’t owe taxes, the DTC won’t result in a refund.

To Qualify For DTC, You;

Be any age

Be a resident of Canada for tax purposes (you don’t need to be a citizen or permanent resident)

Have a valid Social Insurance Number (SIN) — temporary or permanent

Importance of Disability Tax Credit

It provides tax relief for additional living costs that individuals with disabilities and their caregivers may face.

It serves as a gateway to other federal, provincial, or territorial programs such as:

Registered Disability Savings Plan (RDSP)

Child Disability Benefit

Canada Workers Benefit (Disability Supplement)

Benefits of Disability Tax Credit (DTC)

The DTC reduces the amount of income tax owed.

If the individual is under 18, a supplemental amount may also apply.

Transferable: If the disabled individual does not need the full credit, it may be transferred to a spouse, parent, or another supporting relative.

The DTC reduces the amount of income tax owed.

Retroactive Claims: You may request a reassessment of your tax returns for up to 10 prior years using Form T1ADJ (Adjustment Request) if you were eligible in past years.

The activities of daily living are as follows:

  • Mental functions
  • Walking
  • Dressing
  • Eliminating
  • Vision

How Much Disability Tax Credit Will I get?

The amount of the Disability Tax Credit (DTC) you can receive depends on your age and province. Here are the general amounts for 2025:

For those 18 years and older: The federal component is $10,138.

For those under 18: The federal component is $10,138, plus a supplementary amount of $5,914, totaling $16,052.

Disability Tax Credit Application Process

Applying for the Disability Tax Credit (DTC) on your own can feel overwhelming and confusing. Many Canadians with disabilities choose not to apply simply because the process is unclear and time-consuming. You could be missing out on up to $25,000+ in government refunds and benefits.

That’s money meant for you to help cover medical costs, lost income, therapy, caregiving, and more.    Yet many Canadians never apply because the process is confusing, time-consuming, and filled with red tape.

Other Information

A medical practitioner must also certify that one or more of these situations applies:

Not only for visible disabilities – includes cognitive and mental health conditions.

Eligibility is based on effects of the condition, not just diagnosis.

You receive life-sustaining therapy.

Common Misconceptions

Not only for visible disabilities – includes cognitive and mental health conditions.

Eligibility is based on effects of the condition, not just diagnosis.

Being approved for CPP Disability or provincial assistance does not guarantee DTC approval.

GET OUR ULTIMATE FREE DTC GUIDE 2026

Step-By-Step Guide To Applying For The DTC

Applying for the Disability Tax Credit involves several steps. Let’s break them down:

  • Determine Eligibility: Before you start, review the eligibility criteria to ensure you qualify for the DTC. Assess the nature and impact of your disability, and consult with a medical practitioner if necessary.
  • Obtain Form T2201: You need to complete Form T2201, the Disability Tax Credit Certificate. You can get this T2201 form from the CRA website or by calling the CRA to request a paper copy. The form is also available in an accessible format if you have visual impairments.
  • Complete Part A of Form T2201: Fill out Part A of the form with your personal information, such as your name, address, and Social Insurance Number (SIN). This section should be completed by you or your representative.
  • Have a Medical Practitioner Complete Part B: Ask a qualified medical practitioner to complete Part B of the form. They will provide details about your disability, including its duration, severity, and impact on your daily activities, and certify the information. Choose a medical practitioner who is familiar with your condition and can provide a thorough and accurate assessment.
  • Submit Form T2201 to the CRA: Once both parts are completed, submit the form to the CRA for review. You can do this online through the CRA’s My Account portal, by mail, or by fax. Online submission is typically the fastest method and allows you to track the status of your application.
  • Wait for the CRA’s Decision: The CRA will review your application and notify you of their decision. This process can take several weeks, so be patient. The CRA may request additional information or documentation if needed.
  • Keep Records: Maintain copies of all documents and correspondence related to your DTC application for your records. This includes copies of Form T2201, medical reports, and any communication with the CRA. Keeping thorough records can help you address any issues or questions that may arise during the application process.
 
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