Helping you navigate the Disability Tax Credit






Take advantage of the Disability Tax Credit

The Disability Tax Credit is a credit from the Canadian government that helps to reduce your taxable income. This means that you pay less taxes and may be eligible for programs like the GST/HST quarterly credit and a Disabled Child’s Benefit.

The Disability Tax Credit (DTC) must be applied for through the form T2201, signed off on by your doctor or nurse practitioner and approved by the Canadian Revenue Agency (CRA).

To qualify for the DTC, you must be insulin dependent and spending over 14 hours per week on your diabetes care. There are very strict guidelines given by CRA outlining which tasks do and do not count towards time spent on care.

If you have a child with diabetes who is under 18 years of age, there is no need to be concerned about how much time you spend on diabetes related tasks. CRA assumes that the amount of time spent by parent and child is easily over 14 hours per week and will approve applications based on the doctor’s certification of a type 1 diabetes diagnosis.

Registered Disability Savings Plan (RDSP)

A Registered Disability Savings Plan (RDSP) was designed to provide long-term financial security for a person who has qualified for the Disability Tax Credit. Tax-deferred investment growth, along with generous government grants and bonds make the RDSP a powerful investment tool.

Opening an RDSP gives you access to the annual Canada Disability Saving Grants (CDSGs) which can provide 100%, 200% or 300% matching grants, depending both on the beneficiary’s family income and the amount contributed, up to a lifetime maximum CDSG limit of $70,000* In order to take full advantage of these grants however, no money can be withdrawn for 10 years after the last grant money is deposited.