In an earlier blog entry, I wrote about the Registered Disability Savings Plan that I learnt about during a panel hosted by the DDA, with different financial specialists. One of the topics that was addressed during this Q&A panel was eligibility for the Disability Tax Credit (DTC). As mentioned during the RDSP blog post, to qualify for the RDSP, you must be eligible for Disability Tax Credit.
Here are a few key notes I picked up from the talk on the DTC:
- The DTC application form is a 12-page application that needs to be filled out by a doctor or specialist
- The effects of a condition are much more important than the diagnosis (when filling out the DTC application form)
- DTC benefits can be transferred to a family member (broad definition of family member; it can also be common law, uncle, aunt, brother, etc.)
- If a doctor says your condition started 8 years ago, you can get a DTC refund for the past 8 years (up to 10 years)
- Each year you must ask for the DTC – it’s not automatic
- If you don’t qualify for the DTC because your condition may improve, you have to collapse your RDSP
- DTC does not relate to how much income you have or whether you work or not, you’re still eligible
- DTC application may take up to 6-months to be reviewed
Of course, the best advice for RDSP applicants regarding the DTC is you should do it right the first time – applying for the DTC a second time can leave your application to greater scrutiny. It’s always best to consult with an expert in the field.
The information above is for informational purpose only, and current for this blog post. No warranty is expressed or implied. Neither myself nor the Developmental Disabilities Association is liable for any damages.