Disability Tax Credit
The Disability Amount (Disability Tax Credit)
Perhaps one of the most valuable tax credit available to people with disabilities and their families is the Disability Amount. This credit is most often called the Disability Tax Credit (DTC). It is a non-refundable tax credit which can reduce the amount of tax that a person with a disability has to pay. If the DTC is not required by the person with a disability to reduce their taxable income to zero, then it may be transferred in whole or in part to a family member who supplied some or all of the basic necessities of life such as food, shelter and clothing to the person. Even if the person with the disability is not living with you, you may still be able to claim the DTC if the person depends on you for regular and consistent support for one or more of the basic necessities of life such as food, shelter or clothing. You may be asked to provide receipts or other documents to support this claim.
In the 2018 Taxation Year, the Disability Amount for a person who was 18 years of age or older is $8.235.00. If the person with the disability was under age 18 then there is also a Disability Tax Credit Supplement of $4,804.00 that is added to the disability amount. Both of these amounts can be transferred to a supporting family member if necessary. It should be noted that the supplement can be reduced in 2018 if someone claimed Child Care Expenses or Attendant Care expenses as a Medical Expense. Details of the Disability Amount can be found on Canada Revenue Agency’s web site by following the link at:
Details of the Disability Tax Credit can be found on the Canada Revenue Agency’s website.