‘One in Every 10 People You See Today Will Likely Have Some Sort of Disability.’ That’s according to The Canadian Foundation for Physically Disabled Persons. Fortunately, there is tax relief for those disabled who have continued to work or run a business, do grant research or similar work, or attend a credible educational program. It’s called the Disability Supports Deduction.
If you have impairment in physical or mental functions, you can claim a disability supports deduction if you paid expenses that no one has claimed as medical expenses, and you paid them so you could:
You cannot claim amounts that were reimbursed by a non-taxable payment such as insurance. Expenses must be claimed in the same year they were paid.
You may need to have a T2201 Disability Tax Credit Certificate filed with Canada Revenue Agency (CRA), in order to claim any disability deductions. You can also file and then when the T2201 is approved, you can file adjustments for which years it applies.
What Expenses Are Eligible?
When it comes to tax time, you can use form T929 Disability Supports Deduction. Do not attach this form or your receipts to your income tax and benefit return, but keep them in case CRA asks to see them at a later date. Expenses must be claimed in the same year they are paid. Unused disability support amounts cannot be applied to another year.
When filling out the T929 you will need to list the devices or services you are claiming in the first column. For each service you list, give the name and address of the organization or the name, address, and social insurance number of the individual that provided the service. If you use this form, just attach the receipts to it, and file with your income tax return.
For the purposes of this deduction your earned income should consist of at least one of these:
Some disability supports expenses can also be claimed as medical expenses. The person with the impairment in physical or mental functions can claim these expenses on either line 215 or line 330, or split the claim between these two lines as long as the total of the amounts claimed is not more than the total expense.
I would use the disability support deduction over medical expenses, as the deduction is a direct write-off from your income rather than just a tax credit (with a limit) like medical expenses.
The Disability Support Deduction can help the disabled person relieve their tax burden, as well as the financial burden of their disability.
What Types of Income Do You Have to Report?
Tips for Tax Success Before You Use a Professional Tax Preparer
What Determines Tax Withholding Amounts?
What Is the Disability Tax Credit (DTC)?
When to Hire an Accountant to do your Taxes
Why are my support payments taxable?
Where Does Our Tax Revenue Go?
Let’s Get Ready for Taxes!