Disability Tax Credit Application Process
The T2201 form consists of two parts: an application and a certification.
The first part of the T2201 form is the easy part, as it asks you for your basic personal information: name, address, date of birth, and social insurance number.
The second part of the T2201 form requires is the more exhaustive part of the process, as you will need the help of a medical practitioner who can certify your medical state in a number of areas (i.e. vision and hearing).
How to Apply for Disability Tax Credit
Disabled Canadians can apply for Disability Tax Credit which is provided by the Government of Canada. The purpose of this tax credit is to offset the financial burdens that people with disabilities are faced with. Tax Benefits Canada can make the application process easy for you.
Eligibility for disability tax credit?
Canadians with a prolonged or permanent physical, neurological or psychological impairment can apply for the disability tax credit. To be considered eligible, the applicant has to be ‘markedly restricted’ in performing daily activities such as eating, dressing, walking, bathing and so on. The term ‘markedly restricted’ is defined by the CRA as a restriction that affects the individual 90% of the time or more. Make note that the disability tax credit is not determined based on the nature of the disability, but rather on its severity and how it affects daily activities. According to the CRA, a person qualifies for DTC if:
A: They require extensive therapy to help with daily activities
B: The disability has lasted, or will last for 12 consecutive months, at a minimum.
Who qualifies for DTC?
In order to claim disability tax credit, you have to meet the following criteria:
1. You need to be a Canadian citizen
2. You need to be assessed as having a prolonged impairment that restricts your daily activities 90% of the time or more
3. You should have paid taxes for the years you are claiming the disability tax credit for.
What disabilities qualify for DTC?
When it comes to a disability tax credit, the CRA doesn’t make their decision based on the disability itself. Whether you qualify is determined by how much your disability limits your daily activities. Therefore, if any physical or mental disability affects your daily life to the point that you are unable to perform normal activities (walking, dressing, speaking and so on), and this condition is expected to last for over a year, you can apply for a disability tax credit.
How to apply for a disability tax credit?
You can fill out the necessary documentation and apply by yourself, or you can have a specialized DTC service company do it for you. Tax Benefits Canada can help you build a strong case which increases your chances of getting approved. Plus, we don’t get paid unless you’re approved.
How long does the process take?
There are 2 processes involved in the disability tax credit application. The first part is determining your eligibility, which usually lasts about 4-10 weeks. The second part is getting your return, which will either go into your bank account directly (if you’ve signed up for direct deposit with the CRA) or will be sent via cheque.
Does DTC expire?
Once you get approved for disability tax credit, you can automatically be approved for future years. The CRA will take several factors into account and decide how long they should approve you for. Most of the time, the claimant gets approved for 3-4 years, in which case you will have to reapply. In some cases, the CRA can approve the credit for an unlimited number of years.
What if the application is denied?
If the CRA denies your application, the first thing you need to do is review it and make sure that no details were omitted. You can also contest the decision by submitting an appeal which requires you to re-submit your application and provide evidence to prove your eligibility. It is always recommended to use a professional service to review your application and help you gather additional proof. Note that the number of times you is unlimited.
Filling out your T2201 form on your own
Many Canadians elect to fill out their T2201 form by themselves, but because the process is so demanding, those people end up having their application denied.
Without the proper help and guidance of a specialized Disability Tax service company, many people fail to convince the CRA that they have a severe and prolonged mental or physical disability. Many Canadians who apply for the Disability Tax Credit don't realize the lengths they have to go to convince the CRA that they have a disability that keeps them out of the workforce and makes it difficult to perform basic daily tasks.
This is why many Canadians with disabilities don't receive the money they need from the government. Without the requisite knowledge or experience, these people submit a T2201 form that is either incomplete or just not persuasive.
Important things to know about the T2201 Form
The process of filling out your T2201 form and getting approved for the Disability Tax Credit can be long and uncertain. Here are a couple of things to keep in mind when going through the process:
Purpose of Form
Your T2201 form must provide irrefutable proof that you are living with a disability that adversely affects your ability to work. We take the worry and stress out of filling out your form with our over ten years of experience helping clients complete their form and get approved for the Disability Tax Credit.
Complete Both Sections
It is imperative that both parts of the T2201 form are completed. Many people applying for the DTC choose to fill out only some of their form. With our help, we make completing the entire T2201 form simple and stress-free.
It is essential that a medical practitioner certifies you in some key areas, including visions, speaking, hearing, walking, mental functions, and more. Without this, your application will not be approved.
Once the CRA has received your T2201 form, you can expect to wait 4 - 6 weeks before you find out if you're application has been approved or not.