06/10/2022
Curious on what the Disability Tax Credit (DTC) is? And what it can do for you? Well you’ve come to the right place!
The definition of the DTC from the CRA website is:
‘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.
Being eligible for the DTC can open the door to other federal, provincial, or territorial programs such as the registered disability savings plan, the Canada workers benefit, and the child disability benefit. ’
So based on that definition, a quick summary of what the DTC is and is not looks like this:
- It is a non-refundable tax credit that is designed to give those who qualify for the DTC a tax break
- It is available to everyone age 0-100+
- It does open doors to other federal and provincial programs and supports (we will cover these in a different post)
- It is not a continuous monthly payment for those with disabilities.
Keep your eye out for more posts in the coming weeks breaking down what the DTC is and what it can do to help you and your situation!