Living with a disability might not sound like such a big deal until you’re the one who is directly or indirectly affected. If you are disabled or if you are caring for somebody with a disability, it can have a massive impact on your life. Not only will your entire day to day routine change, but you will also experience other challenges such as financial struggles. This is where the Manitoba disability tax credit comes in. Like other Canadian provinces, Manitoba has a few programs in place designed to offer benefits and tax credits to those suffering from a disability. It’s the goal of these benefits and tax relief to help make life easier for those who so desperately need the help. In order to enjoy your much-needed tax credit, there are a few important things to remember.
Am I eligible for disability tax credit in Manitoba?
- In order to be eligible to claim a disability tax credit in Manitoba, you will need to fulfill the following criteria:
- You must reside in the province of Manitoba.
- You need to be a Canadian citizen or permanent resident.
- You must have paid taxes in the past or, if your spouse/caregiver is claiming, they need to have paid their taxes in the past.
- You suffer from severe impairment of physical or mental functions.
- You suffer from prolonged impairment that has or is expected to last for 12 consecutive months.
- You have a statement from your medical practitioner that your disability meets the conditions of severe or prolonged impairment.
What can I expect?
If you are eligible and you qualify, you will receive a disability tax credit in the form of a non-refundable tax credit. This helps reduce the provincial and federal income taxes of your household which is how families with disabled loved ones enjoy financial relief. In some cases, you could be eligible but you are not able to use all or part of your credit because you have not worked and earned a taxable income. If this is the case, you can transfer the credit to your spouse, common-law partner, or another caregiver.
Children under 18
Children under the age of 18 years, who are eligible to claim disability tax credit, could also be eligible for the Child Disability Benefit. The benefit disability supplement available for those under 18 years of age is a great way of increasing your benefits and covering whatever living or medical costs necessary. Usually, it’s the parent or caregiver who applies for the tax credit on their child’s behalf and, as a result, they also need to fulfil certain criteria as the caregiver.
If you are the primary caregiver of a person with a disability, you could qualify for a tax credit. Just like any tax credit, you will need to fulfil certain criteria, including:
- You have been providing voluntary care of the disabled person for more than three months.
- The recipient of your care is living in a private home and not a care facility.
- You are the only one providing care for this disabled person.
- The disabled person’s caregiver must also meet the equivalent of Home Care Level 2. This requires at least three of the four of these categories:
1) Supervision or assistance with routine activities such as shopping, transport, laundry, preparing meals, etc.
2) Supervision or assistance with personal care such as bathing, feeding, dressing, grooming, hygiene, using the toilet, medication, or mobility.
3) Assisting with community access, navigation of relevant systems, and support including counseling, medical follow-ups, and recreational activities.
4) The provision of sustained and regular advice, help with decision making, and emotional support.
The application process
In order to apply for your Manitoba Disability Tax Credit, you will need to follow the necessary steps. These include completing the necessary paperwork and filing it along with any required supporting documents. In some cases, you might be required to submit further documentation after your application has been filed. If so, the appropriate officials will be in contact in this regard. There is also a portion that will need to be completed by your medical practitioner. They will need to detail their professional opinion of your medical practitioner. It is also possible for your doctor to be contacted prior to the approval of your application.
The application process is managed on a case by case basis. There is no way of determining the precise amount of time required for the application to be processed and approved. If you are approved, you will need to reapply after a certain period of time. You might be approved for a year or two, or possibly even longer. As you approach this date, make sure that you reapply in a timely manner.
For professional assistance with your disability tax credit, call Tax Benefits Canada at +1 (855) 413-6971.