Canadian citizens with disabilities can avail a lot of tax benefits offered by the Government of Canada. The basis of these benefits is the assumption that people with disabilities will have to pay for a lot of unavoidable expenses that all other taxpayers don’t have to. The T2201 Disability Tax Credit (DTC) is designed to serve as a fairness measure for people who suffer from disabilities. The T2201 Disability Tax Credit was created to help people with a severe and prolonged impairment in physical or mental functions, which caused severe restrictions on the disabled person’s ability to perform an activity that is essential for daily life. Let’s find out more about it.
T2201: Important things to know
How much is the disability tax credit for 2020?
Adults can claim a federal non-refundable DTC worth $8,416 in 2020. People under the age of 18 are eligible for an additional supplement of up to $5,003.
Who can fill out T2201?
The T2201 Disability Tax Credit Certificate comprises two parts: Part A and Part B. Part A must be filled by the person with the disability (or a legal representative). Part B requires a medical practitioner to fill it.
How long is T2201 good for?
When a medical practitioner fills out part B of the T2201, he/she will provide information about the duration of your impairment to the CRA. The DTC eligibility has no limitation as far as the past is concerned but the CRA only has the power to reassess 10 years retroactively.
Does autism qualify for the T2201 disability tax credit?
Not necessarily. There are occasions in which people suffering from Asperger’s syndrome or a learning disability may not be suffering from a significant restriction in mental functions for everyday activities to qualify for the T2201 disability tax credit.
What medical conditions qualify for disability in Canada?
These are some of the widely accepted medical conditions that qualify people for the T2201 Disability Benefit Certificate :
- Slowed Walking. Knee/Hip Problems, Osteoarthritis, Poor Circulation, Foot Disorders.
- Digestion Disorders. Inflammatory Bowel Disorder, Crohn’s/Colitis, Incontinence, Prostate.
- Limited Upper Body Mobility
- Breathing Disorders
- Hearing Impaired
- Cognitive Issues.
How much is the disability tax credit for a child?
If you are eligible for the child disability benefit, the Government of Canada will sign you up automatically. The Child Disability Benefit is a tax-free benefit of up to $2,730 per year ($227.50 per month in 2018). It is given to families that have to care for children under the age of 18 who fulfil the criteria for DTC.
Who should claim a disability tax credit for a child?
The Child Disability Tax Credit is available for parents raising a child under 18 who has the prerequisite impairments to qualify for the disability tax credit. However, in the case of a disabled child being raised by two parents, only one can avail the tax credit.
Steps to fill for T2201:
Get Form T2201
The T2201 Disability Tax Credit Certificate comprises two parts: Part A and Part B. Part A must be filled by the person with the disability (or a legal representative). Part B requires a medical practitioner to fill it. If both Part A and Part B are not filled out, the whole form will be rejected.
Fill out Part A of Form T2201
Fill all the sections of Part A that are applicable to you. In most cases, the CRA can, once eligibility is approved, adjust your tax return(s) for all applicable years to include the disability amount for yourself or your dependent under the age of 18. If you want the CRA to adjust your tax returns, tick the “Yes” box in Section 3 of Part A.
Ask a medical practitioner to fill out and certify Part B of Form T2201
To fill out Part B, approach a medical practitioner who can certify the disabilities claimed by you.
All the fees charged by the medical practitioner need to be borne by you. These fees can be claimed as medical expenses when you file your tax return.
Send Form T2201
After filling up Part A and Part B, send your T2201 form:
- electronically by using “Submit documents” in My Account or Represent a Client
- by mail to your tax centre.
The form can be sent at any point in time. However, if you can manage to send it before you file your tax returns, the assessment will be much faster. It’s always helpful to keep a copy for your records as well.
How long does it take to process T2201?
Once you fill your T2201 form, it might take the CRA between three to 12 months to respond to you. Upon receiving and reviewing your application, the CRA might demand for some follow-up information. Upon receiving those responses from your end, the CRA will approve or deny your request.