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Disability Tax Credit: Attention Diabetic & Special Needs Family Members

Jun 28, 2022

ATTENTION DIABETICS / SPECIAL NEEDS FAMILY MEMBERS 

When working with our clients, I often inquire about special needs family members, such as those with autism or down syndrome. The purpose of my inquiry is to ensure that the client and their special needs family member applies for any tax credit or registered account that they can qualify for. 

I will now be asking if there are family members with Diabetes.

Disability Tax Credits

As per the CRA: 

“The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities, or their supporting persons reduce the amount of income tax they may have to pay. An individual may claim the disability amount once they are eligible for the DTC. This amount includes a supplement for persons under 18 years of age at the end of the year. The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face.”

While attending a conference last week, I learned that there is also an opportunity for those with diabetes to potentially qualify for the “DTC” under the category of Life-Sustaining Therapy (when on the link, scroll down).

Example: 14 Hours / Week

If the therapy requires a regular dosage of a medication that needs to be adjusted daily, the time spent on activities directly related to determining the dosage and administering the medication can be counted in the 14 hours per week requirement. For example:

  • checking blood glucose levels
  • preparing and administering the insulin
  • calibrating necessary equipment
  • testing ketones
  • keeping a log book of blood glucose levels

Life-Sustaining Therapy Eligibility

View the life-sustaining therapy video to help you understand the criteria.

It is our recommendation that you review the criteria and see if you do qualify for the Disability Tax Credit. 

Explore the financial value of the annual max disability amount ($8662 in 2021, $8576 in 2020.

(Scroll to bottom of linked page.)

Taxpayer Relief Provision

If you or a family member qualified for the DTC but did not claim it, you can request an adjustment for up to 10 years under the CRAs Taxpayer Relief Provision.

This link will direct you to the application process: 

Application Process

Registered Disability Savings Plan "RDSP"

If the person who qualifies for the DTC, happens to be under the age of 59, they can also open up a Registered Disability Savings Plan. 

This is VERY important financially for a special needs individual. 

Grants and bonds are paid by the government into the RDSP, up to $3500 a year and up to $70,000 over the beneficiary’s lifetime, (paid up to age 49).

There are 3 short videos that are worth watching for more information. 

Please call 705-733-3338 speak to Taivi about how the Disability Tax Credit and the Registered Disability Savings Plan can work for you and your family. 

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