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 Canada’s 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.
Are you eligible for the tax breaks?
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.
What is the Disability Tax Credit?
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 individual’s 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 patient’s life. Once approved, the disability amount can be claimed on the individual’s (or their caregiver’s) tax return.
“The disability tax credit (DTC) is a no Continue reading