If you or a loved one suffers from a disability, you could be eligible for a tax disability credit. The fact of the matter is that disabilities often result in added medical expenses as well as a loss of income – partial or complete. Whether you are able to work just a few hours a week or not at all, your income will take a serious nosedive. This is not the sort of thing anyone can afford when such things as medication and equipment (i.e. wheelchairs) are required for day to day life. For some, the disability or limited functioning is temporary and for others it is permanent. Either way, you should not feel like you have to carry this burden alone. Find out more about the New Brunswick tax disability credit and how to go about submitting your application.
What is a tax disability credit?
Simply put, this credit is the government’s way of giving back to those in need. Once approved, you will receive tax relief to a certain amount depending on the degree to which you have been affected by your disability. This credit helps relieve your tax burden and you can put this money to better use by investing in the equipment you need, medication, and even help pay for other medical expenses. You could be eligible to receive up to $40,000 in tax credits every year! Again, each case is assessed on an individual basis and you will need to meet certain criteria in order to qualify.
Why should you apply for a New Brunswick tax disability credit?
There’s simply so much that you can do with that extra cash in your pocket. Instead of letting it all go to the tax man, you can stay on top of your bills and this, in turn, helps reduce stress. If you need several months or years to recover, it’s important to keep stress to a minimum for the recovery process. If you are permanently disabled, stress can have devastating emotional and mental effects which is all the more reason to limit stress. Some of the expenses that you can cover using your tax credit include car services, assistance with childcare, job coaching, tutoring or education costs, vision or hearing assistance devices, and working income tax benefits.
Applying for yourself or a loved one
The tax disability credit does not only apply to those with disabilities, but also a loved one or caregiver. For example, if the disabled person is under the age of 18, one of the parents can claim this tax credit in the capacity as the parent and primary caregiver. Spouses can also apply as well as common law partners and other caregivers. If this is the case, it is essential that evidence is provided in order to support the claim of caregiver. For each type of application, there is a set of criteria to be met.
Other possible benefits
There are several ways to make your life easier when living with a disability. You might receive disability bonds or grants. You could even have the option of paying into the Registered Disability Savings Plan. The amount you pay in each month is matched in part by the government. With these related programs, you can increase your assistance amount quite significantly and life will no longer be as financially demanding.
How do you know if you are eligible?
This is one of the main reasons why so many people don’t even apply. There is a list of criteria that each type of applicant needs to fulfill in order to qualify. The main factor being a severe and prolonged mental or physical impairment. It should last at least 12 consecutive months and should affect your day to day activities in a significant way. You will also need a qualified medical practitioner to complete a section of the application and supply any supporting documents necessary. Some of the most common medical disabilities covered by this tax credit include anxiety disorders, Autism/Asperger’s Syndrome, Epilepsy, Manic Depression, and Diabetes (both type 1 and 2).
Apart from this, the person who is applying for the tax credit needs to have paid a certain minimum amount in taxes. Even if you do not currently receive a taxable income, you could still be eligible. This is why it’s worth investigating and applying even if you are not completely sure about your eligibility.
The main point to remember when applying for your tax disability credit is the fact that you should always ask for professional assistance. The paperwork can be tricky to navigate and understand which is why it’s good to have a professional in your corner. In addition, there will also be an expiration date on your approval. Some people need to reapply every year, others every few years. It differs from case to case and it’s always best to apply in advance so that you’re not left without that tax relief for one or more months. Call Tax Benefits Canada at +1 (855) 413-6971 today for expert assistance.