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Diabetes Tax Deduction Canada

Tax Deductions For Diabetes

Tax Deductions For Diabetes

The IRS allows you to claim a tax deduction for many of the expenses you incur to diagnose, monitor and treat diabetes. If you, your spouse or a dependent suffers from diabetes, it’s likely that you have more medical expenses than the typical person. Fortunately, the IRS allows you to claim a tax deduction for many of the expenses you incur to diagnose, monitor and treat diabetes. However, you must be eligible to itemize to claim the deduction, and even then, only a portion of the expense is deductible. Deductible portion of diabetes expenses Your total deduction for medical expenses, including all costs that relate to diabetes, are only deductible to the extent the total exceeds 7.5 percent of your Adjusted Gross Income (AGI) for 2017 and 2018. Your AGI is not the same as your taxable income; rather it is your total income less specific types of deductions such as student-loan interest and IRA contributions that are separately listed on the first page of your tax return. To illustrate, suppose your AGI is $30,000. Multiplying this by 7.5 percent gives you $2,250. This means that when you total up all of the medical bills you pay during the year, only the portion that is more than $2,250 can be claimed as a deduction. For example, if your total medical expenses for diabetes and other health-related issues cost $3,800, you can claim a $1,550 deduction. Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income. Diabetes expenses you can include There are a wide range of expenses that you can include in your medical deduction including the purchase price of blood sugar monitoring kits, test strips, insulin and other medications prescribed by your Continue reading >>

Disability Tax Credit

Disability Tax Credit

What is the Disability Tax Credit? The Disability Tax Credit is a credit offered by Revenue Canada to those of who have a severe mental or physical impairment which markedly restricts the basic activities of daily living and/or need and dedicate time for Life Sustaining Therapy (Therapy that must occur at least 3 times per week for more than 14 hours per week). They further require that the person eligible have an impairment that has lasted or is expected to last for a period of 12 continuous months. Further Revenue Canada notes "For the purposes of the disability amount, Life Sustaining Therapy is any treatment for a disease or a disorder that, if withheld would prevent the functioning on one or a group of vital organs to sustain human life." There are some who do not wish to be labelled as "disabled" or have their child carry such a label. I respect that but for myself and others, any financial relief provided by the Federal government is accepted and desired. Please note...that CRA has reverted to its pre-May 2017 policy regarding people living with diabetes who apply for the Disability Tax Credit. They are also currently reviewing applications that were denied after that date. We would also ask that you continue make your MP aware of this issue. Who Can Apply? The Disability Tax Credit is available to those who have a taxable income and who are markedly restricted in the Basic Acts of Daily Living OR require 14 or more hours per week to administer Life Sustaining Therapy. My child or I have Type 1 Diabetes. Do either of us qualify? Yes! While the qualification criteria for a child under 18 is slightly different from that of an adult, if both of you are intensively managing your diabetes care (you are using MDI or an insulin pump), you most likely will qualify. Child Continue reading >>

Moncton Man Among Growing Number Of Canadians With Diabetes Denied Disability Tax Credit

Moncton Man Among Growing Number Of Canadians With Diabetes Denied Disability Tax Credit

Moncton man among growing number of Canadians with diabetes denied disability tax credit By Shelley Steeves Senior Correspondent Global News Tue, Oct 31: A Moncton man with Type 1 diabetes is calling on the Canada Revenue Agency to make it easier for people with the disease to qualify for the disability tax credit. Shelley Steeves reports. A New Brunswick man with diabetes is calling on the Canada Revenue Agency to make it easier for people with the disease to qualify for the disability tax credit after his claim was denied. Kevin Dunphy says he was told his claim was rejected because I dont consume 14 hours a week taking care of my diabetes. READ MORE: Liberals hitting diabetes patients with tax grab, Conservatives and health groups say Dunphy was diagnosed with Type 1 diabetes more than 35 years ago and tests his blood sugar levels and administers insulin at least four times every day to manage his disease. However, when he applied for the federal disability tax credit, the CRA did not consider the time he spends preparing health meals, exercising and managing his stress as life-sustaining therapy. According to Diabetes Canada, most disability tax credit claims made by Canadians with diabetes have been denied by the CRA in the last six months. About 80 to 90 per cent of adults with diabetes applying for this tax credit right now are being rejected and that is only happening since May, so it is a real concern, said Kim Hanson, the director of federal affairs for Diabetes Canada. Hanson says the the reasons for the recent spike in denials are still unclear but she believes some life choices being made by people with diabetes, such as time spent counting carbohydrates, are not being taken into consideration by Revenue Canada. WATCH:Conservatives accuse Liberals of targe Continue reading >>

Disability Tax Credit And Type 1 Diabetes

Disability Tax Credit And Type 1 Diabetes

Disability Tax Credit and type 1 diabetes Disability Tax Credit and type 1 diabetes UPDATE (Oct 24, 2017):JDRF believes the Canada Revenue Agency (CRA) interpretation of the rules regarding life-sustaining therapy has now changed, resulting in many Canadians with type 1 diabetes being denied the tax relief they're eligible for under the Disability Tax Credit. On October 20, JDRF addressed members of Canadas Standing Committee on Finance, advocating to make this benefit more widely available to all Canadians living with type 1 diabetes. The CRA has invited JDRF to meet on October 25 to discuss this issue further. Find out more in this press release . As everyone living with type 1 diabetes (T1D) and their caregivers know, managing the disease can be very costly. The Government of Canada offers some help with this expense, because it officially recognizes T1D as a disability. This allows people living with the disease to apply for a Disability Tax Credit (DTC) and leverage other cost-saving programs. The DTC is a program designed to help those with disabilities or their caregivers reduce the amount of income tax they pay, offsetting some of the significant medical and treatment expenses. To qualify for the DTC, an individuals health care provider must submit a T2201 form to the Canada Revenue Agency (CRA), certifying that the disability causes severe and prolonged impairment and describing its impact on their patients life. Once approved, the disability amount can be claimed on the individuals (or their caregivers) tax return. The disability tax credit (DTC) is a nonrefundable tax credit used to reduce the income tax you pay. It's available for people with a severe and prolonged physical or mental impairment, subject to approval by the Canada Revenue Agency (CRA). A clai Continue reading >>

Dtc Eligibility For Taxpayers With Type 1 Diabetes

Dtc Eligibility For Taxpayers With Type 1 Diabetes

DTC eligibility for taxpayers with Type 1 diabetes Home Columnists David Truong DTC eligibility for taxpayers with Type 1 diabetes DTC eligibility for taxpayers with Type 1 diabetes Why people living with Type 1 diabetes have been refused the Disability Tax Credit The CRA has been finding people living with Type 1 diabetes ineligible for the Disability Tax Credit (DTC), on the basis that one of the requirements is you need 14 hours of life-sustaining therapy per week, on average, to qualify. An internal CRA clarification letter from May said adult diabetics dont require that much time, explaining that 14 hours per week to manage insulin therapy is only required in exceptional circumstances. The agency faced criticism from diabetes support groups, disability advocates and opposition parties for denying the DTC claims of people with Type 1 diabetes who had previously qualified. Though it says it never changed the eligibility criteria, CRA announced earlier this month that it would revert to the pre-May clarification letter. Read: CRA reverts to previous DTC criteria for diabetics The agency stated it would review all applications that had been refused since May 2017. Applicants are not required to present new or additional information, unless the CRA requests that they do so. In reality, the number of therapy hours for people living with Type 1 diabetes varies based on the persons condition. Even with CRA returning to its original clarification, its likely that very few cases will satisfy the criteria of 14 hours. To address this, Finance Canada would need to change the legislation. For now, its important to understand what qualifies as essential therapy for people with Type 1 diabetes under the act. First, to be eligible for the DTC, a taxpayers impairment must be sever Continue reading >>

Disability Tax Credit For People With Diabetes

Disability Tax Credit For People With Diabetes

Disability Tax Credit for People with Diabetes You are here: Home / Disability Tax Credit for People with Diabetes Many people think of our understanding of diabetes as being part of modern medicine. However, knowledge of diabetes dates back several thousand years, to 1552 B.C.E. (Before the Common Era). It was first mentioned by an Egyptian physician during the 3rd Dynasty. The physician’s name was Hesy-Ra and he was perhaps the first doctor to ever identify the condition. However, it wasn’t until 1452 that the word ‘diabete’ was first used, and in the `6th century “Swiss physician Phillipus Aureolus Paracelsus – considered the ‘Martin Luther of Medicine’ – identifies diabetes as a serious general disorder.” Ultimately, however, it was a Canadian doctor by the name of Frederick Banting, the famous physician who discovered Penicillin, who also discovered Insulin. He went on to work with a former student, Dr. Charles Best and began their experiments in earnest in the 1920s. In January 1922, a patient at Toronto General Hospital was the first person in the world to receive Insulin as treatment for his diabetes. He lived for thirteen years after his first treatment. By 1923, Insulin was made commercially available in Canada and the U.S. Dr. Banting became Sir Frederick Banting in 1934, after being knighted by King George V. By 1949, Dr. Best co-founded the Canadian Diabetes Association. In 2010, Dr. Banting and Dr. best were named as Canada’s two greatest inventors. Alongside all these honours, Dr. Banting also received the Nobel Prize for medicine. The work of Banting and Best has inspired thousands of men and women to enter the field diabetes research, and saved the lives of millions of people who use Insulin each day for their diabetes management. Continue reading >>

Tax Credits & Your Rights

Tax Credits & Your Rights

Diabetes & You > Know Your Rights > Tax Credits & Your Rights What is Diabetes Canada's position on tax credits for people living with diabetes? The Government of Canada should institute a system of enhanced tax credits wherein people with diabetes would be eligible for consideration for a non-refundable tax credit or a refundable payout specifically designed to reduce the burden of higher medical and treatment costs. Read Diabetes Canada's full position statement on tax credits The Disability Tax Credit (DTC) for Canadians with Diabetes People with diabetes may be eligible for the Disability Tax Credit (DTC) if they meet the eligibility criteria for receiving a life-sustaining therapy. What are the eligibility criteria for the DTC? The Canada Revenue Agency (CRA) must receive confirmation that the applicant spends at least 14 hours per week on the activities specified by the CRA (listed below) that are related to administering insulin. Kids with type 1 diabetes under the age18 years may be eligiblefor the DTC, as long as the childs physician signs the T2201 Disability Tax Credit Certificate to certify that the eligibility criteria are met. Most kids under age 18 qualify for the DTC because the child and parent/guardian time can be combined to meet the 14 hour per week criteria. The CRA will require individuals to reapply when they turn age 18. Adults must discuss their eligibility with their doctor. Many adults with type 1 diabetes do not qualify for the DTC because the CRA has not received adequate information that they spend at least 14 hours per week on the activities specified by the CRA related to administering insulin. The CRA must receive confirmation from physicians that their patients who are applying for the DTC spend at least 14 hours per week on the activi Continue reading >>

Cra Reverses Disability Tax Credit Restrictions For Diabetics

Cra Reverses Disability Tax Credit Restrictions For Diabetics

CRA reverses disability tax credit restrictions for diabetics Canadian accountants critical of Canada Revenue Agency DTC policy decisions OTTAWA, Jan. 22, 2018 The Canada Revenue Agency has reversed a controversial change to the way it assesses whether taxpayers suffering from Type 1 diabetes qualify for the disability tax credit (DTC). The Agencys initial revision in May 2017 had drawn a sharp response from Diabetes Canada and other health groups who claimed too many deserving people were being shut out from access to the much needed DTC. Jason Kingston, a principal with DSK LLP in Kitchener, Ont., says the reversal seems to be caused by political blowback more than anything else which Im not sure if thats a good way to administer a taxation system. The federal government spent most of the past summer getting beaten up on tax issues, elaborates Kingston, who believes the Liberals subsequently re-examined this issue in the face of public criticism and concluded it would be best to reverse their earlier position rather than continue to deny a critical tax credit to people with a chronic disease. Diabetes Canada claimed last fall that rates of allowances for the DTC for individuals with diabetes had plummeted. We started to notice a change about June when a bunch of people started to contact Diabetes Canada saying Whats happened? It started with some individual patients. But more clinics at that time were [also] really noticing a change in the trend. They were saying we used to never get any of these applications returned/disallowed, and now theyre all coming back that way, Kimberley Hanson, director of federal affairs for Diabetes Canada in Ottawa, told Canadian Accountant last November. Section 118.3 of the Income Tax Act states that a taxpayer could qualify for the DT Continue reading >>

Cra Reverses Course On Disability Tax Credit Eligibility For Diabetics

Cra Reverses Course On Disability Tax Credit Eligibility For Diabetics

Open this photo in gallery: The Canada Revenue Agency took steps Friday to quell a furor over what critics were calling its heartless treatment of diabetics. Disability advocates and opposition parties have been excoriating the agency for weeks over the fact that hundreds of Canadians with Type 1 diabetes have suddenly found themselves ineligible to claim the disability tax credit, even though they've previously qualified for it. The CRA insisted there's been no change in the eligibility criteria, which requires an individual to spend at least 14 hours a week engaged in activities related to the administration of insulin. But diabetes support groups pointed to a May clarification letter sent by the CRA to doctors who provide the medical information needed to support a claim for the tax credit. That letter said only in "exceptional circumstances" would adult diabetics need 14 hours a week to manage their insulin therapy; most would not – which would mean they're not eligible for the credit. The CRA said Friday that it will revert to the clarification letter that existed prior to May, and review all applications for the disability tax credit that have been denied based on the May letter. Diabetes Canada welcomed the move. Kimberley Hanson, director of federal affairs for the group, said she hopes the review "serves as an opportunity to make the application process clearer for those who need to access this much needed credit and ultimately provides financial relief and fairness for those living with Type 1 diabetes." The advocacy group argues that the disability tax credit is essential to help diabetics pay for medication, medical supplies and devices and that the loss of the credit had caused enormous stress and financial hardship for those affected. Revenue Minister Di Continue reading >>

Canada: Disability Tax Credit

Canada: Disability Tax Credit

I am getting increasingly frustrated by diabetics complaining about the Liberal government’s recent push to deny diabetics the Disability Tax Credit. Now, don’t get me wrong, I am not a Liberal supporter and this is not intended to be a political post. My frustration is hearing that other diabetics are qualifying for the Disability Tax Credit and I am not. I am a Type 1 diabetic “Accountant”, and I am honest. I had a doctor sign off the T2201 a number of years ago. It lasted for two years when the CRA stepped in and said that I don’t qualify as I don’t meet the 14 hour rule. In all honesty, I have to agree with them. I cannot justify my claim to investing 14 hours a week in life-sustaining therapy per the requirements of the Income Tax Act. Here’s my question. For those of you who are claiming the Disability Tax Credit, how do you justify the 14 hour rule? I get the DTC for severely impaired vision (unrelated to diabetes), so I’ve never taken the time to add up the hours I spend on diabetes-related tasks. However, if I did I suspect I would be close to 14 hours if not over. I don’t think that everyone would necessarily hit this requirement, since even I myself have experiences changes in how difficult my diabetes is to manage over the years. I personally think that if the DTC is available to one person with T1D it should be available to everyone with T1D. For myself, my blood sugar is affected so drastically by so many variables that I have to actively manage it all day every day in order to maintain tight control. I can’t go an hour without checking my CGM or my blood sugar can end up way out of range. There are likely many people out there who do not experience such factors and who may not need to pour so much time into managing their blood sugar. Continue reading >>

Liberals Hitting Diabetes Patients With Tax Grab, Conservatives And Health Groups Say

Liberals Hitting Diabetes Patients With Tax Grab, Conservatives And Health Groups Say

Liberals hitting diabetes patients with tax grab, Conservatives and health groups say WATCH: Conservatives say Trudeau tax hikes will mean problems for diabetics The accusation opened a new front in the ongoing opposition-waged war on government taxation policy, amid the backdrop of the conflict-of-interest controversy dogging Finance Minister Bill Morneau over whether hes properly distanced himself from millions of dollars of private sector assets. Diabetes Canada was among the groups that joined Conservative politicians to publicly denounce what they say is a clawback of a long-standing disability tax credit to help them manage a disease that can cost the average sufferer $15,000 annually. LISTEN: Dave Prowten of the Juvenile Diabetes Research Foundation joins Rob Breakenridgeon News Talk 770 READ MORE: Are the Liberals clawing back benefits for people with diabetes? Conservative finance critic Pierre Poilievre branded it as one more example of an out-of-touch Liberal government that he characterized as unfairly targeting the hardworking middle class people it claims to support. His tax department tried to tax the employee discounts of waitresses and cashiers. Now his government is targeting vulnerable people suffering with diabetes with thousands of dollars in tax increases, Poilievre said on Sunday at a Parliament Hill news conference flanked by fellow Conservative critics, a young diabetic constituent and a top official with a leading diabetes advocacy organization. In May, the revenue department stopped approving a disability tax credit for people with Type 1 diabetes for those who had previously claimed it, he said. WATCH:Bill Morneau defends small business tax changes People who need more than 14 hours per week for insulin therapy, and had a doctors certificati Continue reading >>

Cra Policy Change Prompted Diabetes Tax Credit Denials, Health Groups Allege

Cra Policy Change Prompted Diabetes Tax Credit Denials, Health Groups Allege

OTTAWA – Diabetes advocates are voicing new concerns over the government's eligibility criteria for the federal disability tax credit, after getting their hands on an internal document that shows the Canada Revenue Agency appears to have changed its process when it comes to approving adults with Type 1 diabetes for the tax rebate. At a press conference in Ottawa, Diabetes Canada and Juvenile Diabetes Research Foundation (JDRF) Canada said the documents they’ve obtained through the federal access to information system clearly show a change in policy, after the federal government insisted there hadn’t been. The change has made it nearly impossible for most adults with Type 1 diabetes to be eligible for the tax break, despite previously being able to, the health groups said. It contradicts National Revenue Minister Diane Lebouthillier’s prior assertion that there had been no rule change at the CRA, after Diabetes Canada and JDRF Canada first raised concern in October that hundreds of Canadians with Type 1 diabetes were being denied the disability tax credit. "There’s either been a terrible breach in communication between the CRA and the minister, or the minister has been expressing false information," said Diabetes Canada Director of Federal Affairs Kimberly Hanson. The groups say the government has been using a nuance to say there has been no change in law, while the memo shows there has been a change in practice. "If I sent a memo like this to my staff at an organization, I would expect them to follow it," President and CEO of JDRF Canada Dave Prowten said. The health groups are demanding the minister immediately rescind the policy change, one they say, was made without the consultation of patient groups or physicians. The document that indicates the policy cha Continue reading >>

Many Canadians With Type 1 Diabetes Still Unable To Claim Disability Tax Credit

Many Canadians With Type 1 Diabetes Still Unable To Claim Disability Tax Credit

Many Canadians with Type 1 diabetes still unable to claim Disability Tax Credit Diabetes Canada says only about 20 per cent of tax credit claims from people with Type 1 diabetes are approved VANCOUVER (NEWS 1130) If you have Type 1 diabetes, you may be among those growing frustrated with the Canada Revenue Agency. People with the disease who have been claiming the Disability Tax Credit for years are now being denied. Some people are approved and others are not even though they all have a letter from their doctor or their health care practitioner, says Sheila Kern with Diabetes Canada . Kern tells us a year ago, only about 20 per cent of these claims were being denied. Now, its about 80 per cent denied. So, its been an extreme shift. To claim the credit, you need to be able to prove youre spending 14 hours a week on care and therapy. Despite complaints from coast to coast, Kern says the CRA hasnt taken action. What they had said was an adult who independently manages insulin therapy does not meet the 14-hour-a-week criteria. She says a letter was sent to the Minister of National Revenue last month detailing concerns, and meetings have taken place since then. But rejection letters keep on coming. Canadians are upset. Diabetes is an expensive disease, says Kern. If youre on an insulin pump, continuous glucose monitor plus your medications it could be up to $15,000 a year. NEWS 1130 is a proud supporter of Diabetes Canada. Our Tim James is representing Team Diabetes at the Honolulu Marathon on Sunday, December 10th, 2017. If youd like to help, you can click here to donate . Continue reading >>

Does Diabetes Qualify For Disability Tax Credit?

Does Diabetes Qualify For Disability Tax Credit?

Todd Korol/National Post Last week’s Family Finance column profiled a young couple, Tim and Kathleen, and mentioned that Tim’s disability and diabetes qualifies him to open a registered disability savings plan. Eligibility to open an RDSP is dependent on qualifying for the disability tax credit (DTC). That diabetes would entitle an individual to claim the DTC surprised some readers, who asked for clarification. Under the Income Tax Act, the DTC is available to people with a “severe and prolonged impairment in physical or mental functions” which markedly restricts one or more of the individual’s basic activities of daily living or would markedly restrict an activity if it wasn’t for “life sustaining therapy.” Life-sustaining therapy is therapy that an individual requires to support a vital function and is administered at least three times per week for an average of at least 14 hours per week. The purpose of this rule is to allow individuals to be eligible for the DTC if they must have life-sustaining therapy that requires them to dedicate a significant amount of time away from their normal, everyday activities to receive the therapy. In 2005, the tax rules were amended to state that if the therapy has been determined to require a regular dosage of medication that needs to be adjusted on a daily basis, the activities directly involved in determining the appropriate dosage are considered part of the therapy. As a result of this change, a child with Type 1 diabetes who is unable to independently adjust his or her insulin dosage may now qualify for the DTC taking account into time spent by his or her parents in assisting the child to administer the insulin. Since the amendment passed, there have been at least two reported cases in which the CRA challenged the Continue reading >>

Disability Benefits For Diabetes | The National Benefit Authority

Disability Benefits For Diabetes | The National Benefit Authority

Today, there are 11 million Canadians living with diabetes or prediabetes. Every three minutes, another Canadian is diagnosed with the condition. Diabetes is a chronic, debilitating and sometimes fatal disease, where the body cannot produce an adequate amount of insulin for the body, or cant correctly utilize the insulin it does produce. Insulin is a vital hormone that regulates blood-sugar levels. Without sufficient supply of insulin, a person risks damaged organs, blood vessels, and nerves. There are two types of diabetes: type 1 diabetes, and type 2 diabetes. Type 1 diabetes is characterized by the bodys immune system mistakenly attacking and killing beta cells in the pancreas. Since beta cells are responsible for distributing insulin into the blood via the pancreas, without their presence, sugar in the blood builds up rather than being used for energy. Type 1 diabetes is usually treated with insulin dosages; careful meal planning can also regulate blood sugar levels. Type 2 diabetes occurs when the body cant properly use the insulin it does produce (called insulin insensitivity). This is the most common type of diabetes, affecting 90% of people with the disease. Depending on the severity, the condition can be managed through meal planning, physical activity, or medications. Diabetes has an array of signs and symptoms, the most common being: Its important to note that these are predominantly Type 1 diabetes symptoms; type 2 diabetes may display no symptoms. Canadian Disability Tax Credit for Diabetes While people with diabetes can live an active, independent lifestyle, theyll need to adapt to certain changes in diet, exercise, and medications. The Canadian government recognizes both type 1 and type 2 diabetes as disabilities, due to its impact on lifestyle, the cons Continue reading >>

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