Medical & Disability

Tax Tip: Overview of Applying for the Disability Tax Credit

If you are applying for the Disability Tax Credit, a medical doctor, nurse practitioner or relevant specialist must complete part B of form T2201 for you.

This form provides the Canada Revenue Agency (CRA) with information used to determine whether or not you qualify for this valuable tax credit, and unlike the CRA’s Taxpayer Relief Program where the information is Taxpayer-driven, the Disability Tax credit information is Taxpayer-driven but substantiated by a medical professional.  Without the medical professional confirmation, the application will be denied by the CRA.

To complete part B of the form, your doctor will be required to note information about your visual, oral, auditory, or ambulatory disabilities. Your doctor may also provide information about any difficulties with elimination, feeding, dressing, and mental functions. Finally, your doctor or medical professional will need to report information about any life-sustaining therapies you use as well as information about the cumulative restrictions created by your condition.

Make sure you take the time to explain the disability and it’s impact on you in great detail, and then make sure that not only your doctor or medical professional agrees but will sign off on the documents.

If your doctor doesn’t agree, or if you don’t have a relationship with that medical practitioner and the application is called into question, the doctor is going to protect their reputation over your claim 100% of the time.  Before it gets to that, however, it is extremely likely that where there is some uncertainty around the claim being made, that the medical practitioner will refuse to sign the T2201.

 

References

For more information on the Disability Tax Credit, you can visit the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html

Information from the CRA for Medical Practitioners regarding the completion of the DTC: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/information-medical-practitioners.html

Form T2201 Disability Tax Credit Certificate:  https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2201.html