Pages

Tuesday, 12 April 2016

Understanding Disability Tax Credit Canada

By Peter Hill


There are over two million people who are disabled in Canada and this is what necessitated the country to look into ways of making their lives to be more comfortable just like for the normal people. One of the ways of achieving this feat was through the introduction of the disability tax credit Canada. Whenever you mention it you will get an audience since most people do not understand it.

The above mentioned tax credit was provided for people who are physically challenged to be able to claim it if their taxable income falls short. It can also be split with a family member who usually accommodates and takes care of these persons. It is a way of giving them a relief as disabled persons usually strain them in certain ways.

The funds realized from this claim are not to be spent on only services and products that are usually related to the welfare of the disabled people. It was just a way that the government deemed fit to offer them a way out to enjoy freedom financially just like the normal people. In order to keep out undeserving Canadians from accessing it the government introduced some criteria to govern the eligibility of the person benefiting from it.

These requirements require that the applicant has to demonstrate and prove beyond any doubt that they suffer an impairment that impedes them from doing normal duties on their own easily. It is important for their applications to be consistent with the categories that the Canadian Revenue Agency recognizes. They touch on some major eight points that are considered by the CRA in the evaluations of applications.

The agency puts into consideration the needs of a disabled person to undergo future therapies in order to sustain their lives and the other conditions that affect them. They also ensure that the kind of disability affecting such persons has been there for the past one year. This condition should also be expected to continue existing for a long period of time to come.

All the applications made by disabled Canadians are subjected to a vigorous check in order to check whether they satisfy the evaluation guidelines created by the CRA. They are used in the evaluation of all applications notwithstanding the underlying disabilities. These applications should also be made on a prescribed T2201 form that is supposed to be filled and signed by a physician to be used as a source of all your personal details.

Currently there have been calls for reforms in the way these claims are made as most people complain that they are not worth enough. The complaints range from the complex application processes and the eligibility requirements being too restrictive. Other complains attack the CRA claiming that it turns down the applications and that some doctors also deem them not eligible at all.

CRA stated that only a few of the eligible Canadians actually claim the tax credit while the majority stays away. It seems the CRA has heeded these complaints as an overhaul is looming complete with new set of regulations. This will ensure that more disabled Canadians will have access to this money.




About the Author:



No comments:

Post a Comment