Susan Kent of Ottawa gets extremely busy this time of year. Her firm, Ottawa Tax Services, specializes in preparing tax returns. With over 10 years of experience, you could say she knows her way around a T4, not to mention all the other forms that need to be filed to the Canada Revenue Agency (CRA).
One of her areas of expertise is the Disability Tax Credit (DTC). Many people do not realize that they can qualify for this credit, says Ms. Kent. In response to the Standing Report on Canadians with Disabilities, CRA has opened the door wider to accepting claims for many disabilities.*
If a disability falls within CRA parameters, it could result in tax savings of $1,500 to $4,000 per year under the DTC. Moreover, if the disability existed in years prior to the claim, tax returns can be reassessed as far back as 10 years and could result in tax refunds greater than $10,000. Ms. Kents websitelists some of the refunds obtained for her clients for example:
$48,000 for a person with inner-ear bone degeneration that causes balance problems
$12,800 for a person suffering from chronic migraine headaches
$23,000 for a person suffering from ADD/ADHD
Furthermore, if a child is registered for the DTC, you can open a Registered Disability Savings Plan (RDSP) for them. The government will match to varying degrees your contributions. And the withdrawals to support your disabled child will not be clawed back by social benefit programs such as OAS and ODSP.
*Included disabilities are: ADD, ADHD FASD (Fetal Alcohol Spectrum Disorder), autism, Aspergers Syndrome, bi-polar disorder, manic depression, anxiety disorders, irritable bowel syndrome, Type 1/2 diabetes, epilepsy and learning disabilities.