The Disability Tax Credit (DTC) is a non-refundable tax credit that was created to help reduce taxes paid
to individuals with prolonged impairments, marked restrictions or who need life-sustaining therapy. The
impairment must cause significant restrictions to carry out activities of daily living (ADL). Activities of
daily living include bathing, dressing, walking, carrying, lifting and other personal care elements. These
impairments are divided into three elements: physical impairments (Chronic pain, Visual impairments,
Hearing impairments, Elimination issues - bowl, bladder, Diabetes), mental health (Mood disorders,
Anxiety, Personality disorders, Psychotic disorders, Eating disorders, Trauma-related disorders, and
Substance abuse) and neurological (Multiple Sclerosis, Alzhiemer’s disease, Parkinsn’s disease, Epilepsy
and Strokes).
‘Marked restriction’ is classified as an individual needing an inordinate amount of time to complete two
or more activities of daily living. Inordinate amount of time means three times the amount it would take
an individual without the restrictions even with therapeutic assistance, technological devices and/or
medications. These restrictions must affect the individual 90% of the time or more. For instance, Dave
C was diagnosed in 2020 with osteoarthritis, underwent knee surgery the following year due to tears in
both knees. It takes him three times longer than a normal person to walk or perform any other activities
of daily living. Dave must sit to dress and put on socks. His wife does the housework due to his severe
condition. Dave’s condition is considered a ‘marked restriction’ and was approved for the Disability Tax
Credit. (DTC)
Life-Sustaining Therapy is another condition that would qualify a person for the Disability Tax Credit
(DTC) due to the amount of time and the cost of treatment. One must spend an excess of 14 hours per
week on treatment, such as insulin, chest therapy, and kidney dialysis. For example, Larry M suffers
from Type 1 Diabetes, he takes injections 4 times per day, as well as daily diabetes-related tests that
require 2 hours per day which totals 14 hours per week. This would qualify Larry for the Disability Tax
Credit (DTC).
It is important to understand that the diagnosis itself, does not necessarily mean that you qualify for the
Disability Tax Credit (DTC), but rather how the diagnosis affects your abilities of daily living. The Canada
Revenue Agency has identified ‘prolonged-impairment’ to determine eligible criteria for the Disability
Tax Credit (DTC). The following is considered prolonged impairments:
● Osteoarthritis
● Digestion Disorders;
● Limited Mobility Issues;
● Ankylosing Spondylitis;
● Breathing Problems;
● Cognitive Impairments;
● Psychological Disorders;
● Autoimmune Diseases
The Disability Tax Credit (T2201) form is divided into two main parts. Part A which would be filled out by
the person applying for the DTC or their supporters which consists of personal information (Name,
Address, Date of Birth and Social Insurance Number). Part B must be filled out by the corresponding
healthcare professional. For example, if the person is applying for the DTC has a visual impairment, they
would either have their medical doctor, nurse practitioner or their optometrist fill out the vision section.
However, if the individual experiences mental health issues, they would either have their medical
doctor, nurse practitioner or psychologist fill out the mental health section.
It is absolutely critical that you have the corresponding medical section filled out correctly to avoid
delays or the denial of your application. There are three options that you can take to have the forms
filled out:
1. Fill out the Disability Tax Credit (T2209) form yourself by downloading it from the CRA’s website,
having your medical professional fill out their section and sign it;
2. Complete the form with the assistance of an Accountant;
3. Having the form filled out by a DTC firm;
Once your DTC form is filled out with your supporting documents, there are a couple of ways to submit
them to CRA:
1. You can upload the forms and your supporting documents to the CRA website or;
2. You can mail them to your local tax office;
I would highly suggest you keep a copy of your forms and supporting documents just in case you are
asked for copies.
Once your application is submitted, it could take anywhere from 3 to 9 months before CRA makes a
decision. The following could happen:
1. Your medical professional may receive a questionnaire for further clarification of your medical
condition;
2. CRA will approve your application and will determine what years that you qualify for. You may
qualify for up to 10 years;
3. CRA might deny your application;
If denied, you have a number of options available to you:
1. Call and ask CRA for further clarification to see why your application was denied;
2. You can write CRA and make a formal request for a review of your application. Make sure you
submit new or updated information with a letter from a medical professional familiar with your
circumstances;
3. You can raise a formal objection within 90 days of your application being denied. Make sure you
include any new and updated information;
4. You can submit a new DTC application with new and updated information about your
impairments;
Once approved, you qualify for a number of benefits such as:
● The one-time COVID Relief Payment;
● The Child Tax Benefit. This is a monthly benefit if your child is under 18 years old;
● The Registered Disability Savings Plan (RDSP);
● The Canada Disability Savings Grant;
● The Canada Disability Savings Bond;
The Disability Tax Credit (DTC) is transferable, which means that if they do not pay federal taxes or their
income is below $25,000; they can transfer their DTC to their supporters.