Tax Tip:  Disability Tax Credit

Individuals who have a severe and prolonged impairment in physical or mental functions may apply for the disability tax credit (DTC). The federal tax credit is valued at over $1,100 (15% x 7,766) in 2014, with the possibility of an additional disability supplement for certain individuals under the age of 18 at the end of the year. Provincial tax credits may also be available.

The DTC is a non-refundable tax credit used to reduce income tax payable on an individual’s income tax return. All or part of this amount may be transferred to an individual’s spouse or common-law partner, or another supporting person.

Being eligible for the DTC can open the door to other federal, provincial, or territorial programs such as the registered disability savings plan, the working income tax benefit, and the child disability benefit.

For individuals that may have been eligible for the DTC for a number of years, but have not applied, taxpayer relief may be an option to access these credits for the prior 10 years.

Action Item: If you think you may be eligible for this generous DTC, contact us to discuss.