The child disability benefit is a tax free benefit paid to individuals and families who take care of a disabled child under 18 with a severe and prolonged physical and/or mental disability.
Who qualifies for Child Disability Benefit?
In order to qualify for the Child Disability Benefit, you need to be eligible for the Canada Child Benefit and your child must be eligible for the Disability Tax Credit.
Canada child benefit
The Canada child benefit (CCB) is a monthly payment to families that help with the costs of raising children under 18. To apply for the Canada child benefit, you must:
- Live with the child and the child must be under 18 years of age
- Be the person responsible for the care and upbringing of the child
- Be a resident of Canada for tax purposes
- You or your spouse must be any of the following:
1. A Canadian citizen
2. A permanent resident
3. A protected person (as defined in the Immigration and Refugee Protection Act) canada.ca/taxes 7
4. A temporary resident (as defined in the Immigration and Refugee Protection Act) who has lived in Canada throughout the previous 18 months, and who has a valid permit in the 19th month other than one that states “does not confer status” or “does not confer temporary resident status.” If this is your situation, do not apply before the 19th month
5. An Indian within the meaning of the Indian Act
Disability Tax Credit
In order to receive the child disability benefit, your child must meet the eligibility criteria for a disability tax credit. A child is eligible for a disability tax credit when a medical practitioner confirms on the T2201 form that the child has a prolonged and severe impairment in mental and physical functions. This includes:
- Bowel or Bladder Functions
- Mental Functions necessary for everyday life
Depending on the disability, the child will need to see either an MD, an audiologist, optometrist, physiotherapist, psychologist, or a speech language pathologist. After completion, the T2201 needs to be sent to the CRA for written approval.
Note: If you are already getting the Canada child benefit for a child that is eligible for disability tax credit, you will get the child disability benefit automatically and there is no need to apply.
How much will I get?
The child disability benefit starts with a base amount that is adjusted based on family size and net income. Calculations vary, but you could get up to $2,771 ($230.91 per month) for each child that is eligible for disability tax credit, for the period of July 2018 to June 2019. If your adjusted family net income is more than $65,975, the benefit gets reduced by 3.2% of the amount of adjusted family income for families with one child, and 5.7 % for families with two or more children.
In order to continue getting benefits, you have to remain eligible for the Canada child benefit and the child also needs to remain eligible for the disability tax credit. To avoid interruptions and delays in payments, you and your spouse or common law partner need to do your taxes each year even if you had no income.
What if my application gets denied?
If the CRA denies your application, the first thing to do is go over your entire application to make sure no important detail was omitted. Most applications get denied because the papers had not been filled out properly. To ensure that your application meets all the necessary requirements, Tax Benefits Canada offers professional guidance and assistance, and we don’t charge you anything unless you get approved!
If you have reviewed all the necessary information and resent the application, but it still got denied, you have the right to file a formal objection to appeal the decision. For this you have 90 days.