Tax Season Is Here!

Canadian tax rules include many credits and benefits to help persons with a developmental disability and their family.

Most taxpayers have until April 30 to file their return. If you file late, there is a 5% penalty on unpaid tax, and 1% monthly interest for up to 12 months.

If you do not owe tax but haven’t filed your return, you could be missing out on your tax refund. As well, many monthly benefits are income-tested based on line 236 (your net income) – so you need to file to receive them.

When you do file, there are many tax credits and deductions that are relevant to persons with disabilities and their caregivers. One of the most important is the disability tax credit – CRA has an online quiz to see if you may be eligible. A medical professional has to complete and sign the T2201 Disability Tax Credit Certificate and then it has to be approved by the CRA. The credit can be transferred to a family member.

Other key credits are for medical expenses and caregivers and there are also deductions available, for example related to disability supports. Adults who have a developmental disability and are working, may benefit from the refundable medical expense supplement and the working income tax benefit, the latter of which includes a disability supplement and is paid out as a refundable tax credit. There is also the Registered Disability Savings Plan to help persons with a disability and their families to save for the future. Even the tax credit for first home buyers has special assistance to recognize the cost of making housing more accessible to persons with disabilities.

If you need help with paying taxes and you are low income, look into the Community Volunteer Income Tax Program to see if there is a session in your area.

You can refer to the tax primer on FMC’s website for more information.

Another U7 Solutions - Web-based solutions to everyday business problems. solution.