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Friday, 1 April 2016

Applying For Disability Tax Credit Canada

By Lisa Sullivan


Canada has well over two million people who live with disabilities and the country intended to help them to have a standard of living that is at par with the others. This is why it introduced the disability tax credit Canada in 1988. However, most of the disabled Canadians are not aware of the existence of this tax credit.

It was fathomed in order for persons with physical challenges and those without an adequate taxable income to access it. It is also possible for it to be split among family members who usually cater for the needs of the disabled person. This is mainly meant to act as a relief for families due to the strain they experience as they take care of the disabled person.

This money is not necessarily to be spent on products or services that are related directly to the disability. It is just a credit that was introduced to enable these people to enjoy or have financial freedom like their able-bodied counterparts. In order to enjoy it however, there is an eligibility criteria that you have to pass.

It is necessary for you as the applicant to have an impairment that usually impedes you from being able to perform one or two activities that form part of your daily life routine. It is also important for you to exhibit a marked impairment touching on the several categories that fall under this part. The Canadian Revenue Agency has eight areas that it mainly considers.

It also takes into consideration your need for undergoing life-sustaining therapies as well as several conditions that are compounded for cumulative effect. The disability you could be suffering from ought to have been continuous for a period of more than one year. It should also be expected to last longer or for a longer period of time.

The Canadian Revenue Agency evaluates all the applications made on the basis of its own evaluation guidelines. This exact same criteria is always applied in all cases notwithstanding the circumstances of a particular underlying disability. It would be imperative that your physician duly fills and signs the T2201 form and also a certificate that bears all your physical or mental challenge details.

The form is filled once but you can request for retroactive reimbursement for periods not more than ten years back. You might also need to re-file this form in case your circumstance changes or even the level of disability changes in a significant way or some new legislation affect your eligibility. If your original eligibility was evaluated as temporary initially and the period that you were granted expires then you should reapply in case the impairment continues.

It is important to note that omissions or mistakes have made eligible persons in the past to miss out on the tax credit. This is why it is important to consider hiring the services of a professional to do all the filling for you carefully and accurately. They would enable you get the maximum benefit while avoiding the complexities of filling the details.




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