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For many Calgarians living with disabilities, managing finances can be challenging. Fortunately, the Canadian government offers the Disability Tax Credit (DTC) to provide some financial relief. This comprehensive guide will walk you through everything you need to know about this important benefit.
The Disability Tax Credit is a valuable non-refundable tax credit designed specifically for Canadians living with disabilities and their families. This important benefit reduces the income tax you or your supporting family member may have to pay, effectively acknowledging and offsetting some of the extra costs associated with living with a disability. If you’re living with a severe and prolonged physical or mental impairment that significantly affects your daily activities, you may qualify for this credit. Once approved, you can claim this amount on your annual tax return.
The Disability Tax Credit is available to individuals who have a severe and prolonged impairment in physical or mental functions in 1 of the categories listed below, significant limitations in at least 2 categories, or get therapy to support a vital function. The credit can be claimed by the person with the disability, a supporting spouse or common-law partner, a supporting parent of a child with a disability, or other supporting family members in specific circumstances. But what exactly does this mean? You may be eligible for the DTC if:
While the Canada Revenue Agency (CRA) does not provide a specific list of qualifying medical conditions for the disability tax credit, they evaluate eligibility based on how your condition affects your ability to perform basic activities of daily living.
The CRA considers impairments in the following categories:
To apply for the disability tax credit, you’ll need to complete Form T2201, the Disability Tax Credit Certificate. Here’s a step-by-step process:
The disability tax credit provides significant financial benefits through a non-refundable tax credit. For the 2024 tax year, the amount was:
Additional provincial or territorial credits may also apply depending on where you live. In Alberta, you may be eligible for additional provincial tax credits.
It’s important to understand that as a non-refundable tax credit, the DTC can only reduce the amount of income tax you owe to zero—it won’t provide a refund if you don’t owe taxes. However, the DTC can be transferred to a supporting spouse or family member in many cases.
Completing the DTC application properly is crucial for approval. Consider seeking assistance from:
Taking the time to ensure your application accurately reflects your condition can significantly improve your chances of approval.
*This article is provided for informational and entertainment purposes only. While we strive to provide accurate information, tax credits and benefits may change over time. For the most current and accurate information about the Disability Tax Credit, please consult the official Canada Revenue Agency website or speak with a qualified tax professional.*
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140, 1935 32nd Avenue NE
Calgary, Alberta T2E 7C8
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