Disability tax credits apply to adults and children. Of course, when a minor is involved, the parent will need to submit the application. Unfortunately, the number of applicants in Alberta is notably low. So many more people could benefit from some extra financial breathing room. In 2014, less than 40% of eligible people in Alberta actually received their tax credit. This is one of the lowest rates throughout the country. The key to making the most of any kind of tax credit is knowing all the facts. By being informed, you too can enjoy the benefits you deserve.
What is the disability tax credit?
Also known as DTC, the disability tax credit is a non-refundable tax credit for those with disabilities. It also applies to those supporting people with disabilities. This is to offer financial relief to those who are earning a reduced income due to their disabilities. Certain criteria must be met in order to establish eligibility and, for people under the age of 18, supplements can also be applied. In many cases, disabilities do not only affect your ability to work, but they can also result in added expenses. From special equipment to regular medical expenses, this tax relief will help make those bills more affordable.
Another important point to keep in mind is the fact that your tax disability credit eligibility can also make it possible for you to benefit from provincial, federal, or territorial programs like the registered disability savings plan, the child disability benefit, and the working income tax benefit.
How do you know if you are eligible?
Tax disability credit eligibility is one of the biggest questions people have. There are some specific criteria that you will need to meet and you will also need to submit Form T2201 with any and all relevant supporting documentation. You will need a medical practitioner to complete and certify that you suffer from severe or prolonged impairment due to your disability. The severity of the way your life is affected will also be used to help determine eligibility.
When applying, it’s important to make sure that you complete each section of the form with care. There is a section that your doctor will need to complete and you should inform them that they could be contacted by officials in this regard.
Once approved, it’s important to remember to reapply when necessary. There is no set period of time for each approval. In other words, you might need to apply again in a couple of years or perhaps longer. Make sure that you always apply early so that you don’t miss out on that tax relief. In some cases, you may also qualify for tax credits applied to years past – prior to your application.
Why such a low number of Alberta tax disability credit applicants?
There are a number of factors that have contributed to the low number of applicants in the province of Alberta. The main one being the application process itself. Many people find it confusing and difficult to complete all the documents as per the necessary requirements.
Another common problem is that many parents and caregivers do not know that they are able to claim tax relief on behalf of their children or dependants. People are also unaware that their tax disability credit is also transferable to caregivers.
With such a complicated system and process, many people are either denied or they simply give up. Instead of giving up on money that should be yours, why not seek professional assistance to ensure a smooth application process without all the unnecessary stress?
Over the years, the process and criteria have changed. Today, the regulations a bit more specific in an effort to rid the process of ambiguity. Still, for those who have never filed such an application before, it can still be incredibly daunting and confusing. After you have submitted your application with the relevant documentation, you will then need to wait for the response. You might receive a response fairly soon or they could ask for additional documents. Many people agree that it can also help your case if you include as much medical evidence as possible. Ask your advisor about their thoughts on including impact letters as a person or parent as well as photographs of the disability (if appropriate and possible). Sometimes, the best way to get somebody’s attention is by showing them what you have to deal with every day. Written or typed words can easily be read without having much of an impact. However, when the official processing your application sees actual visual evidence, it can completely change their perspective.
When you need to apply for your tax disability credit in Alberta, call Tax Benefits Canada at +1 (855) 413-6971 for expert assistance. Not only are we familiar with the process, but we can also answer any questions you have regarding this form of tax relief and how you can maximize your benefits.