Canadian tax compliance requirements and filing process is no easy task and comes with lots of challenges for you to face head-on. Fortunately, with the help of professional accountants and tax filing support, you can easily overcome these challenges.
If you are a person with health hazards and impairments that affect your daily life functioning, the Canada Revenue Agency has a tax filing relief for you. And that is Disability tax credit. Even if you are a caregiver for a disabled person, you can apply for it via disability tax credit application form.
This detailed guide will help you understand how to fill out the form and get maximum credits for your due tax.
WHAT IS DISABILITY TAX CREDIT?
The disability tax credit is generally a non-refundable tax credit granted by the Canadian government for physically and mentally impaired individuals. It is offered to lay off the financial burden because it does get challenging for a person to manage disability with challenging financial conditions.
So, if you are a person with a prolonged disability or a caregiver for your disabled loved one, you can access this tax credit easily.
Fill out the disability tax credit application form with the necessary legal and medical permits for a smooth process without any rejections.
ARE YOU ELIGIBLE FOR THE DISABILITY TAX CREDIT?
The Canada Revenue Agency has set specified eligibility criteria to access tax relief for disabled individuals. For you to be eligible for the disability tax credit:
- The disability must significantly affect activities such as walking, speaking, dressing, or managing bowel or bladder functions.
- The impairment must have lasted, or be expected to last, for at least 12 months.
- A medical practitioner must certify your condition on the required forms.
If you didn’t know about the disability tax credit earlier, you can even claim the tax credit refund for all those years/months.
HOW TO FILL OUT THE DISABILITY TAX CREDIT APPLICATION FORM?
Follow these easy 5 steps to fill out the application form with no hassle.
Step 01: determine whether you are eligible or not
First of all, it is important for you to be eligible for the tax credit. Consult a certified practitioner to confirm your eligibility. You can even contact a professional accountant to take a thorough review of your situation and suggest possible strategies for an effective application process.
Step 02: obtain form T2210:
After confirming your eligibility, it’s time to obtain the form T2201 via CRA’s website. This application form consists of two sections/parts:
- Part A: This section is filled out by the applicant or their legal representative.
- Part B: This section is completed by a qualified medical practitioner who provides detailed information about the impairment.
Step 03: Fill out part A:
For this step, you need to start filling out the disability tax credit application form. Start off with the part A. This part requires information such as personal details, including your name, SIN (Social Insurance Number), and information about your representative (if applicable). Ensure the information is accurate to avoid delays.
It is recommended to double-check the input information to avoid any misinformation and rejections.
Step 04: Collaborate with your medical practitioner
After you fill out part A, it’s time for your medical practitioner to fill out part B. It is highly important that your medical practitioner has a good understanding of your/your loved one’s disability and how it affects their daily life functioning.
Any misinformation or misunderstanding from the doctor’s end can cause rejection of your application in no time.
Step 05: Submit the form
The fifth and final step, submit the filled-out form. Make sure to double-check the form thoroughly in case of any mistakes. You can submit the disability tax credit application form to the Canada Revenue Agency in one of the two below-mentioned ways:
- Online through CRA’s My Account portal.
- By mail to your local tax center.
Check out this detailed guide to avoid common mistakes people make while filling out the form T2201.
WHAT TO EXPECT NEXT?
After you submit Form T2201, the CRA will review your application. The review process may take several weeks. During this time:
- CRA May Contact You: Additional information or clarification might be requested.
- Approval or Denial: If approved, you will receive a notice of determination indicating your eligibility and the years for which the credit applies. If denied, the CRA will provide reasons for their decision, and you may have the option to appeal.
CONCLUSION:
If you are applying for the disability tax credit, make sure to comply with the Canada Revenue Agency’s set guidelines and criteria.
Any misinformation or inaccurate approach will lead to instant rejection of your disability tax credit application form. Therefore, it is recommended to consult a certified accounting firm/ professional accountant to assist you with the process. You can access our services for the disability tax credit easily. Book your call to discuss the situation and we are here to help you out.