Use the Disability Tax Credit to get back money from prior Years
In the past few months several of my clients have succesfully applied for and approved for the Disability Tax Credit. The Disability Tax Credit is a non refundable tax credit that can save you approximately $1000 a year in income taxes. Often times the Canada Revenue Agency can allow you to go back several years and use the disability tax credit to get you money relating to those tax years. Some of my clients have gotten back $1000 to $6000 so far as a lump sum. Since this money respresent a refund of taxes paid – it is 100% tax free and not counted as income.
What are the Qualifications?
Have a physical or mental impairment that is expected to last for more than 12 months
Your impairment restricts you from one of the following activities such as hearing, walking, seeing, speaking, bowel functions, feeding and dressing.
How do you Apply?
Download a copy of the application form from the Canada Revenue Website http://www.cra-arc.gc.ca/E/pbg/tf/t2201/ and have your doctor complete the questionnaire
Mail the original application to your tax centre
Once approved you can file tax adjustments for prior years if applicable
If the tax payer do not need the tax credit to reduce their taxes then they can transfer this credit to a family member living in the same household who is acting as their care giver. For additional questions or if you require assistance please feel free to let me know.
