Do you know if you or a loved one is eligible for the disability tax credits offered by the Canadian and Alberta governments?
The disability tax credit is a non-refundable tax credit used to reduce income tax payable. The credit for 2011 is $7,341 for federal taxes and $13,095 for Alberta taxes. That could be a savings of up to $2,410 depending on your tax bracket. If you have a dependent eligible for the disability amount with little or no income all or a portion of this credit may be transferred to you. The dependent can be your or your spouse's or common-law partner's parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew, or niece.
If a child is under 18 years and is eligible for the disability tax credit that child is also eligible for the child disability benefit, an amount available under the Canada Child Tax Benefit. Individuals who have a prolonged impairment in physical or mental function, use form T2201 to apply for the disability tax credit. The form must be completed by a qualified practitioner and CRA (Canada Revenue Agency) must approve the form. Often the practitioner will charge a fee to complete the form.
There are definitions for several different categories of disabilities. To determine if you are eligible look at Form T2201 or you can look at CRA’s website:
You may want to talk to your doctor or other practitioner about whether or not your situation fits the definitions. But for tax advice talk to a tax professional.
For tax advice talk to a tax professional:
There are a number of companies that will assist you in getting your tax credit BUT be aware that many will charge 25% to 50% of your tax savings for the service. Ours fees are based on the services we provide, not on the amount you will receive. A typical charge for a straight forward request is around $250.
If you are unsure if you qualify for the tax credits, please call us. We will help you with the paperwork and assist you in getting the tax credits that you deserve.
Les Grajkowski CFP
Bonnie Powers CMA (editor)