Canadian Disabilities legislation and tax credit

[Anonymous]

Hi,

I recently found out that ADD is now recognised as an offical disability in Canada as well as the USA.

There is a tax credit in Canada for those with disabilities but the eligibility requirements appear to be very restrictive, however in Googling the subject I have found articles making conflicting arguments. Some say the restrictions are flexible and have been expanded to allow ADD to be included. Some argue that the impairments of ADD are not significant enough to meet the criteria.

I’m not looking for a crutch or an excuse to be disabled but the tax credit is for $35,000.00 and that’s a significant amount.

If one is able to qualify for the credit it would be foolish not to apply for it.

I’ve spent a lot of money on medication, diet, tools, resources, councelling, psychiatry, electronic and paper organizers, job/life coaching, and repeated tuition to rationalize taking advantage of the tax credit.

Please let me know your thoughts as I’m sure this is a contraversial subject for us all. Should we be offended that we are considered disabled or should we celibrate that we are finally getting recognition? Should we push for more?

If we try to get the tax credit are we somehow marginalizing or claiming equality to those who have obvious and severely dibilitating disabilities that create a huge emotional and financial burden on them and their families. Should there be an alternative lesser tax credit for those who are only moderately impaired?

Tell me what you think.

In the mean time, if anyone has gone through the process of applying for the Tax Credit on the basis of ADD being your disability, please let me know how the process turned out for you.

Thanks,

Michael ooooh shiney.

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[BuxomDiva]

You’re right it is very hard to qualify apparently. A paralegal I know has never had a client with invisible disabilities get the CRA credit. I know of one person who got the disability tax credit for herself and her children but I’m not sure what she told them in the part of the application the person completes for themselves. She was working for Dr. J. at the time so I know the doctor’s information would have been done well.

By the way, this is not new. ADHD has been recognized as a disability for many years. I got the bursary for disabled students from the Ontario Student loans program back in 1998. Since I’ve been on ODSP for years now (for my ADD) the CRA credit would not make any difference to me; the only tax refund I get is the Ontario Tax Credit relating to the rent I pay.

It’s always worth it to take every tax credit we can! Good luck.

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[trashman]

Italked to my pcyiatrist on dec 15,she said she could put me on dissability Iam not sure what that means so i left that alone. i don’t know if that is because of my adhd or my learning dissabilitys.

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[turbo]

Michael, where did you hear that the credit was for $35,000 ? If you are talking about the value of a number of different disability programs which ones?

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[BuxomDiva]

guys I’m pretty sure that $35K figure is the one being thrown around by the companies trying to take your money!

just found a reference on a website that the max is $1,100 per year – http://www.astepbeyond.ca/article/disability-tax-credit-283.asp

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[turbo]

As a tax accountant, I can tell you that for 2010 the tax credit will be worth $1,524 to a resident of Ontario with a taxable income of $35,000.

For those with lower taxable incomes (but which are still significantly above the basic personal exemption amount) it may be worth as much as ~$1,800 if it reduces your Ontario income tax to the point that the Ontario tax reduction calculation kicks in.

CRA currently approves disability tax credit certificates for 15 year periods at a time. At the end of 15 years, a new application must be submitted for you to continue claiming the tax credit.

I guess one could extrapolate a total value of 15 x $1,524 = $22,860 on the credit assuming the credit amount stays the same over the next 15 years.

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[Anonymous]

having adhd means that you dont have the mental functions necessary for everyday life. i just applied for the tax credit for my daughter and was approved, although she has a learning disability as well.

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[trashman]

can any one tell me where or how to aply.

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[Anonymous]

Hi trashman: Applying for the disability tax credit is not that hard. I have helped many clients apply for and get the credit. There is not a lot to the paperwork, although it is a 9 page form. The applicant completes page one. You should have someone knowledgeable help with this. You do not require the services of a high priced professional, just someone with solid income tax experience that knows your situation. CRA just doesn’t hand this credit out haphazardly. The most important person involved in this application is the Doctor who is going to complete the remaining 7pages, page 2 being general information re completing the form. Take the form to the Doctor who best knows your situation, as CRA’s staff will probably contact that Doctor for more information.

You can get the form off the internet, but it’s easier to get it from your Income Tax preparer, as they can personalize for you. If you take the form to your Doctor, and if he/she says you don’t qualify, your pretty well dead in the water as far as the claim goes. If you have another Doctor/Specialist, try that person also.

I have helped many clients apply for and get the credit for themselves, spouses, children , and other realitives. The credit is transferable to other people if it does not help your tax situation, as long as they live with you, or help with the basic necessities of life. EG, helping with shelter, food, clothing etc.

If possible, avoid using the numerous companies that are willing to help you on commission. They try to give the impression getting this credit is a monumental task. It’s not! It boils down to the answers your Specialist gives to CRA’s questions. I examine the application before it is submitted , to check for obvious errors the Doctor has made . They do make errors, but their job is mainly keeping you as well as possible, not completing forms. Of course, what they write in the comments section is anybodys guess. You, the patient,can ask them.

My usual fee is $15.00 a year, for the # of years we are adjusting. Lately CRA has been putting a 10 year adjutment limit. My fee is not payable untill you actually get additional money from CRA. If your claim is rejected, you owe me nothing. Believe me when I say, there is not a lot of time involved for the person helping you apply for this credit. Of course I have all the info I need right in my client’s file. I’m amazed how many people are qualifying for this credit lately. It’s an epedemic. I am going to start asking each client if they, or someone they know, qualify. Sometimes these disabilities are not obvious. I have to be nosey to do a good job, and my client’s are OK with it.

This is just a service I do for my clients. I am not looking for new clients. I do not advertise, but I do take on a few new clients each year by refferal only.

If there are more questions, I’ll try to answer them to the best of my ability, but remember the fact that we are not in an advisor/client situation. This is just my experience with the credit, being told, not advice.

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[trashman]

Hi , I was just told that if I could do my own banking and live unsupervised the this tax credit was not for me so adhd and mental illness is not enough. sat that you allmost have to be in the place that you can’t apply, then maybe it would be willing to recognize that there is a disability. (pretty sad)

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[Bill]

Here is what the Canadian Revenue Agency says (http://www.cra-arc.gc.ca/disability/). It recognizes that one possible disability is not having the mental functions necessary for everyday life.

Mental functions necessary for everyday life

For the DTC, you are considered markedly restricted in performing the mental functions necessary for everyday life if, all or substantially all the time:

* you are unable to perform them by yourself, even with appropriate therapy, medication, and devices (for example, memory aids and adaptive aids); or

* you require an inordinate amount of time to perform them by yourself, even with appropriate therapy, medication, and devices. An inordinate amount of time means that you take significantly longer than for an average person who does not have the impairment.

* * * * *

Here is their discussion of a mental disability:

Mental functions necessary for everyday life

For some people, performing the mental functions necessary for everyday life may pose a challenge.

A person suffering from clinical depression for a period of three months who is responding well enough to medication to be able to continue living alone would not qualify for the disability tax credit (DTC). While this individual is clearly having difficulty with some mental functions, the fact that they are able to care for themselves means that their adaptive functioning is not markedly restricted at this point in time. Additionally, the medical condition is not yet prolonged in that it hasn’t lasted, nor is it expected to last, for a continuous period of at least 12 months.

Similarly, a child with behavioural problems who has been treated with medication and therapy for over a year and whose behaviour at home has improved would not qualify for the DTC. Although the child’s condition has been present for over a year and is likely to continue into the near future, the fact that improvement is occurring and that there is clearly a difference in behaviours between school and home, the impairment cannot be seen to exist all or substantially all of the time.

However, a person exhibiting dementia, who coincidentally also suffers from diabetes and is unable to maintain his diabetes logbook or keep track of his glucose levels and insulin usage and who must rely on someone else to provide required care, would qualify for the DTC. In this case, the patient qualifies because his or her impairment affects both his or her adaptive functioning and memory to the extent that he or she is unable to live independently.

Mental Functions necessary for everyday life include:

* adaptive functioning (for example, abilities related to self-care, health and safety, abilities to initiate and respond to social interaction and common, simple transactions);

* memory (for example, the ability to remember simple instructions, basic personal information such as name and address, or material of importance and interest); and

* problem-solving, goal-setting, and judgement, taken together (for example, the ability to solve problems, set and keep goals, and make approriate decisions and judgements).

Notes

A restriction in problem-solving, goal-setting, or judgement that markedly restricts adaptive functioning, all or substantially all the time, would qualify.

Learning disabilities affect many patients and are a serious concern for those affected. Generally, severe and prolonged learning disabilities would normally be associated with the mental functions necessary for everyday life criterion. The most common mental function that may be affected is adaptive functioning (for example, abilities related to self-care; health and safety; abilities to initiate and respond to social interactions; and common, simple transactions) or memory (for example, ability to remember simple instructions, basic personal information such as name and address, or material of importance and interest). The impairment(s) must exist all or substantially all of the time. When providing details in the Effects of impairment part of Form T2201, it is important to address not only what occurs in an academic environment, but also when the patient is at home or out in the community.

The following video is hosted on a non-CRA server:

Transcript

For more information, contact us.

Forms and publications

* Guide RC4064, Medical and Disability-Related Information

* Form T2201, Disability Tax Credit Certificate

Related topics

* Persons with disabilities

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[Anonymous]

The breakdown for $35,000 tax benefit that we (www.DisabilityRefunds.com) and other firms in this field advertise is approximately $15,000 in tax refunds and $20,000 in additional child tax benefits).

One should seek a tax expert’s advice. Most doctors do not understand the definition of disability. “Disability” for tax purpose may have a different meaning than what medical professionals perceive. It is also different from what most of our clients think “disability” is.

We deal with such cases on regular basis and the total benefits (tax refund and additional child tax benefits) may go up to $35,000 – so if you think you or someone in your family has a disability please visit us at http://www.DisabilityRefunds.com

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[trashman]

It goes by how much tax you paid. if your tax that you paid was low due to low income, then your refund will be lower. I can tell you that my return was a total of $16000 it is easy t o apply for your doctor will have to fill out a form.

The big question is how much do these company charge for this service? I know that if your doctor will not sign the forum then you will get nothing!

whey you want to have revenue canada to recalculate your tax year, you have to write or copy a letter with the year on it. even if you print the letter and just change the date for year requested .

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[Author]

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