# Disability Tax Credit



## spinningtop (Aug 15, 2017)

Is it worth getting the federal certificate necessary for a non-refundable tax credit when you don't owe money on tax returns? Or is it worth it on the basis that you have income at least over the $45k range?


----------



## gardner (Feb 13, 2014)

If you qualify for the DTC, I believe you should apply for it since besides the credit itself, it also unlocks access to other programs:

https://www.canada.ca/en/revenue-ag...rsons-disabilities/disability-tax-credit.html



> 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.


----------



## spinningtop (Aug 15, 2017)

gardner said:


> If you qualify for the DTC, I believe you should apply for it since besides the credit itself, it also unlocks access to other programs:


I appreciate the response. Our income is too high for the working tax benefit, we don't have a child with a disability benefit and we already have investments tied down. I'm not aware of anything the federal government offers that we would access. Things are mostly going well for us, but with the income splitting going away and transit credit going away, we're not looking at a good income tax return. I'm currently registered with a disability with the Ontario government. The federal government seems to be mostly irrelevant to our family except for possibly the DTC. Only, I don't want to go through the hassle of getting my doctor to fill out the forms if it isn't going to have any impact on our tax return. 

It's not that we're living in poverty or something like that. But there are expenses related to my disability and if the fed gov and offset that a little, I'd like that.


----------



## Disabilityrefunds.co (Aug 16, 2017)

Yes, one should apply for DTC. Even if the person is not paying any tax (as is the case with lot of people with disability), the credit can be transferred to a "qualified" family member or relative. The RDSP has an additional advantage that one can "hide" the money there and still be entitled to provincial assistance or disability benefits as RDSP is an exempt asset. This is the advice we give our clients.


----------



## spinningtop (Aug 15, 2017)

What's the benefit of RDSP vs RRSP's? We already have well performing investments. 

I was aware that I could transfer the credit to my spouse, but it might not make any difference. I don't have an income and we've always gotten money back on our tax returns. Not sure we get as much this year with income splitting gone and transit credit gone. How would a non-refundable credit help us if we'll probably get a couple of hundred dollars back on our tax return. It won't get us any money and we don't owe money, so it won't lessen a bill. 

I wouldn't qualify for the working income tax benefit and we don't have a child with a disability. It's a life long disability, so I'm used to working with it, only it's causing a temporary employment hassle for me. We're not hard up enough to need (or want) disability payments. But a decent tax return would really help at the end of the year.


----------



## gardner (Feb 13, 2014)

spinningtop said:


> we've always gotten money back on our tax returns


Just because you get money back does not mean you pay no taxes. It only means that the deduction at source exceeds your actual liability. You haven't given any indication what your family income range is, so it's hard to know of the actual DTC is beneficial.

The RDSP is similar to a TFSA, in that it is an after-tax vehicle in which earnings are not taxed. But the real benefit is that in any year you contribute the feds put in extra money -- on the order of $1,500 per year. Some of that can be applied for retro-actively also. The RDSP is a complicated program but there are experts on this forum -- I am certainly not one. IMO the best product is TD's which is fully self-directed. As an unsophisticated user, RBC's is the most friendly, but is pretty limited how you can invest.


----------



## OhGreatGuru (May 24, 2009)

Apply for it. You only have to do it once. With a Disability Certificate you can also claim a much broader range of medical expenses, as well as certain care expenses. You may not need them now, but if you have a long-term disability you are more likely to need them in the future. (See CRA RC 4064 for details.)


----------



## spinningtop (Aug 15, 2017)

Alright, thanks.


----------



## OhGreatGuru (May 24, 2009)

spinningtop said:


> Is it worth getting the federal certificate necessary for a non-refundable tax credit when you don't owe money on tax returns? Or is it worth it on the basis that you have income at least over the $45k range?



As noted by others, the above statement, together with your later comment that you have "always gotten money back on your tax returns", suggests that you don't understand your tax return very well. People with a $45K income still pay taxes, unless they have a lot of extra non-refundable tax credits, such as as the Disability Tax Credit. The Basic Personal Amount is only about $12K.


----------



## james4beach (Nov 15, 2012)

spinningtop said:


> I appreciate the response. Our income is too high for the working tax benefit, we don't have a child with a disability benefit and we already have investments tied down. I'm not aware of anything the federal government offers that we would access. Things are mostly going well for us, but with the income splitting going away and transit credit going away, we're not looking at a good income tax return. I'm currently registered with a disability with the Ontario government. The federal government seems to be mostly irrelevant to our family except for possibly the DTC. Only, I don't want to go through the hassle of getting my doctor to fill out the forms if it isn't going to have any impact on our tax return.
> 
> It's not that we're living in poverty or something like that. But there are expenses related to my disability and if the fed gov and offset that a little, I'd like that.


Drawing attention to this post since it was previously held in moderation queue and not visible


----------



## rl1983 (Jun 17, 2015)

It might cost a few dollars to have your doctor fill out the forms, but depending on how long you have been disabled, it's actually retroactive up to 10 years. My application in is limbo at the moment. Expect to wait six months for a decision.


----------

