{"id":1666,"date":"2021-11-23T01:00:51","date_gmt":"2021-11-23T09:00:51","guid":{"rendered":"https:\/\/brightfuturesplan.com\/?page_id=1666"},"modified":"2021-11-23T03:14:30","modified_gmt":"2021-11-23T11:14:30","slug":"disability-tax-credit-3","status":"publish","type":"page","link":"https:\/\/brightfuturesplan.com\/disability-tax-credit-3\/","title":{"rendered":"Disability Tax Credit"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.9.4&#8243; background_color=&#8221;#eae090&#8243; background_enable_image=&#8221;off&#8221; background_position=&#8221;top_center&#8221;][et_pb_row _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;][et_pb_text _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;]<\/p>\n<h1 style=\"text-align: center;\">Disability Tax Credit<\/h1>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22.7&#8243; custom_padding=&#8221;0px||0px&#8221;][et_pb_row _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;][et_pb_accordion _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; module_class=&#8221;disability-tax-credit&#8221; sticky_enabled=&#8221;0&#8243;][et_pb_accordion_item title=&#8221;The Disability Amount (Disability Tax Credit):  Line 31600&#8243; open=&#8221;on&#8221; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;]<\/p>\n<p>Perhaps one of the most valuable tax credits available to people with eligible disabilities and their families is the <strong>Disability Amount<\/strong>. This credit is most often called the <strong>Disability Tax<\/strong> <strong>Credit (DTC).<\/strong>\u00a0 It is a non-refundable tax credit which can reduce the amount of tax that a person with the eligible disability has to pay and any unused DTC can be transferred to other family members in certain circumstances.\u00a0 Eligibility for the DTC also acts as a gateway to some important measures, such as the <strong>Registered Disability Savings Plan<\/strong> and the <strong>Qualified Disability Trust.<\/strong><\/p>\n<p>For the 2021 tax year, the combined DTC for a resident of Ontario is <strong>$1,743.<\/strong><\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 25%;\">\n<p>2021 Disability Amount<\/p>\n<p>Line 31600<\/p>\n<\/td>\n<td style=\"width: 25%;\">\n<p>Federal<\/p>\n<p>Tax rate: 15%<\/p>\n<\/td>\n<td style=\"width: 25%;\">\n<p>Ontario<\/p>\n<p>Tax rate: 5.05%<\/p>\n<\/td>\n<td style=\"width: 25%;\">Combined<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\">Base amount<\/td>\n<td style=\"width: 25%;\">$8,662<\/td>\n<td style=\"width: 25%;\">$8,790<\/td>\n<td style=\"width: 25%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\">\n<p>DTC:<\/p>\n<p>Base amount* Tax rate<\/p>\n<\/td>\n<td style=\"width: 25%;\">$1,299<\/td>\n<td style=\"width: 25%;\">$444<\/td>\n<td style=\"width: 25%;\">$1,743<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Where the person is under the age of 18 years, there is an additional <strong>Disability Amount<\/strong> <strong>Supplement<\/strong> that can be claimed.<\/p>\n<ul>\n<li>The <strong>Disability Amount Supplement base<\/strong> amount may be reduced where an amount paid in the year for the care or supervision of the person with the eligible disability is claimed by any person as a <strong>child care expense<\/strong>, or as attendant expenses for the <strong>disability supports deduction<\/strong> or a <strong>medical expense tax credit.<\/strong><\/li>\n<li>The reduction is the amount by which the amount of child care and attendant care expenses claimed exceeds the Threshold Amount.<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 33.3333%;\">2021 Disability Supplement<\/td>\n<td style=\"width: 33.3333%;\">\n<p>Federal<\/p>\n<p>Tax rate: 15%<\/p>\n<\/td>\n<td style=\"width: 33.3333%;\">\n<p>Ontario<\/p>\n<p>Tax rate: 5.05%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Supplemental base<\/td>\n<td style=\"width: 33.3333%;\">$5,053<\/td>\n<td style=\"width: 33.3333%;\">$5,127<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">\n<p>Reduction:<\/p>\n<p>Child care and Attendant expense claimed\u00a0\u00a0\u00a0 over<\/p>\n<\/td>\n<td style=\"width: 33.3333%;\">XXXX<\/td>\n<td style=\"width: 33.3333%;\">XXXX<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Threshold amount for 2021<\/td>\n<td style=\"width: 33.3333%;\">($2,959)<\/td>\n<td style=\"width: 33.3333%;\">($3,003)<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Excess reduction<\/td>\n<td style=\"width: 33.3333%;\">\u00a0 (\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<td style=\"width: 33.3333%;\">(\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Reduced base<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Disability Supplement tax credit (Reduced base*tax credit)<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Who else can claim the unused portion of the DTC?<\/strong><\/p>\n<ol>\n<li>Where the person with an eligible disability has a spouse or\u00a0common-lawpartner, the spouse or\u00a0common-law\u00a0partner may be able to claim the unused portion of the DTC (line 32600).<\/li>\n<li>Where the person with the eligible disability does not have a spouse or common-law partner, certain \u201cSupporting Persons\u201d may be able to claim the unused portion of the DTC (line 31800), if, either:\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>The Supporting Person, who is single, widowed or separated, <u>claimed <\/u>the <strong>Eligible Dependant<\/strong> amount (line 30400) for the person with the eligible disability (the \u201cdependant\u201d) in situations where:\n<ul>\n<li>The dependant is <strong>under or over the age of 18 years<\/strong>;<\/li>\n<li>The dependant lives with the Supporting Person; and<\/li>\n<li>The dependant is the parent, grandparent, child, grandchild, brother or sister of the Supporting Person.<\/li>\n<\/ul>\n<p>Where the dependant is <strong>under the age of 18 years<\/strong>, the Supporting Person can also claim the Disability Amount Supplement.<\/p>\n<p>or<\/p>\n<p>The Supporting Person <u>could have claimed<\/u> the <strong>Eligible Dependant<\/strong> amount if the Supporting person was not married or in a common-law relationship and the dependant was <strong>18 years of age and over<\/strong> and had no income for the year.<\/p>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p><strong>or<\/strong><\/p>\n<ol>\n<li>The Supporting Person <u>claimed<\/u> the <strong>Canada caregiver credit<\/strong> (line 30450) in situations where:\n<ul>\n<li>The person with the eligible disability is <strong>18 years of age and over; <\/strong>and<\/li>\n<li>The person with the eligible disability is the parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the Supporting Person, or of the Supporting Person\u2019s spouse or common-law partner,<\/li>\n<li>The person with the eligible disability does not have to live with the Supporting Person.<\/li>\n<\/ul>\n<p>Or<\/p>\n<p>The Supporting Person <u>could have claimed<\/u> the <strong>Canada caregiver credit<\/strong> if the person with the eligible disability is <strong>18 years of age and over<\/strong> and had no income for the year<\/p>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p><strong>Who is a Supporting Person?<\/strong><\/p>\n<p>A Supporting Person is an individual (other than the spouse or common-law partner) who supports the person with the eligible disability.<\/p>\n<p>A person is generally considered to be dependent on someone if the individual has actually supplied the basic necessities of life (food, shelter and clothing) on a regular and consistent basis.<\/p>\n<p>Where the person with the eligible disability was in receipt of social assistance (ODSP) or any other type of support, the Supporting Person must be able to show that the other support was insufficient to fully meet the basic needs and that the person had to rely on the additional support provided by the Supporting Person.<\/p>\n<p>The new T2201 DTC Certificate requires Supporting Persons to provide details regarding the support provided to the person with the eligible disability, including the regularity of the support, proof of dependency, and the basic necessities of life that have been regularly and consistently provided (food, shelter, clothing).<\/p>\n<p><strong>Special Situations:<\/strong><\/p>\n<ol>\n<li><u>Attendant expenses: Medical expense or DTC<\/u>\n<p>To claim the DTC, no person can claim an amount paid as remuneration for an attendant or for care in a nursing home for the person with the eligible disability as an eligible medical expense for the <u>Medical Expense Tax Credit &#8211; <\/u>(METC).<\/p>\n<p>There is an exception:<\/p>\n<ul>\n<li>Where the amount claimed as an eligible medical expense is the lesser of the amount paid as remuneration and $10,000, the DTC may also be claimed. (For residents of Ontario, the provincial limit is $15,046).<\/li>\n<li>The limit is increased from $10,000 to $20,000 where the person with the eligible disability dies in the year. (For residents of Ontario, the limit is $30,091 where the person dies in the year).<\/li>\n<\/ul>\n<\/li>\n<li>A Supporting Person cannot claim the unused DTC transferred from a Dependant where the Dependant is a child for whom the Supporting Person had to pay child support.<\/li>\n<li>A Supporting Person cannot claim the unused DTC if the spouse or common-law partner of the person with the eligible disability is claiming the DTC or any other non-refundable tax credit (other than medical expenses) for this person.<\/li>\n<li>A Supporting Person can split the unused DTC with another Supporting Person. However, the total claimed for that dependant cannot be more than the maximum amount allowed for that dependant.<\/li>\n<\/ol>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Eligible Dependant amount:  Line 30400&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; open=&#8221;off&#8221;]To claim the <strong>Eligible Dependant<\/strong> amount, the Supporting Person:<\/p>\n<ul>\n<li>must be single, divorced, separated or widowed or <\/li>\n<li>married or in a common-law partnership, but did not live with the spouse, did not support the spouse, and was not supported by the spouse<\/li>\n<li>must support the dependent; and<\/li>\n<li>must live with the dependent in a home maintained by the Supporting Person.<\/li>\n<\/ul>\n<p>The dependant must be the parent, grandparent, child, grandchild, brother, or sister of the Supporting Person. <\/p>\n<p>A dependant who is a person with the eligible disability can be of any age.[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Canada Caregiver Credit: Lines 30425, 30450, 30500&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; open=&#8221;off&#8221;]<\/p>\n<p>The Canada Caregiver Credit is designed to provide tax relief to caregivers of dependants who have an infirmity and who are dependant on the caregiver for support because of that infirmity.<\/p>\n<p>There are four different situations:<\/p>\n<ol>\n<li>The Supporting Person, who is single, supports an Eligible Dependant who is <strong>18 years of<\/strong> <strong>age or older;<\/strong> and\n<p>The Supporting Person is eligible to claim the <strong>Eligible<\/strong> <strong>Dependant amount on line 30400 <\/strong>for this Dependant.<\/p>\n<p>The Supporting person can claim <u>both<\/u>:<\/p>\n<p>The Federal Canada Caregiver amount of $2,295 (there is no Ontario Canada Caregiver amount) when calculating the amount under line 30400<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 33.3333%;\">\n<p>2021 Eligible Dependant Amount<\/p>\n<p>Line 30400<\/p>\n<\/td>\n<td style=\"width: 33.3333%;\">\n<p>Federal<\/p>\n<p>15%<\/p>\n<\/td>\n<td style=\"width: 33.3333%;\">\n<p>Ontario<\/p>\n<p>5.05%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Base amount<\/td>\n<td style=\"width: 33.3333%;\">$13,808<\/td>\n<td style=\"width: 33.3333%;\">$10,162<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Canada Caregiver amount<\/td>\n<td style=\"width: 33.3333%;\">$ 2,295<\/td>\n<td style=\"width: 33.3333%;\">Nil<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Total<\/td>\n<td style=\"width: 33.3333%;\">$16,103<\/td>\n<td style=\"width: 33.3333%;\">$10,162<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Less: Dependant\u2019s Net Income<\/td>\n<td style=\"width: 33.3333%;\">(\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<td style=\"width: 33.3333%;\">(in excess of $924)<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Claim under Line 30400<\/td>\n<td style=\"width: 33.3333%;\">XXXXXX<\/td>\n<td style=\"width: 33.3333%;\">XXXXXX<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>And<\/strong><br \/>The Canada Caregiver amount of up to $7,348 for Federal tax purposes (and up to $5,128 for Ontario) on line 30425 depending on the Net income of the dependant and any claim on line 30400.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 22.9236%;\">2021 Canada Caregiver amount: Line 30425<\/td>\n<td style=\"width: 20.598%;\">\n<p>Federal<\/p>\n<p>15%<\/p>\n<\/td>\n<td style=\"width: 22.5914%;\">Federal- Income reduction<\/td>\n<td style=\"width: 20.598%;\">\n<p>Ontario<\/p>\n<p>5.05%<\/p>\n<\/td>\n<td style=\"width: 12.9568%;\">Ontario- Income reduction\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.9236%;\">Base amount less<\/td>\n<td style=\"width: 20.598%;\">$7,348<\/td>\n<td style=\"width: 22.5914%;\">\u00a0<\/td>\n<td style=\"width: 20.598%;\">$5,128<\/td>\n<td style=\"width: 12.9568%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.9236%;\">Dependant\u2019s Net Income<\/td>\n<td style=\"width: 20.598%;\">\u00a0<\/td>\n<td style=\"width: 22.5914%;\">Net Income<\/td>\n<td style=\"width: 20.598%;\">\u00a0<\/td>\n<td style=\"width: 12.9568%;\">Net Income<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.9236%;\">Income Threshold<\/td>\n<td style=\"width: 20.598%;\">\u00a0<\/td>\n<td style=\"width: 22.5914%;\">($17,256)<\/td>\n<td style=\"width: 20.598%;\">\u00a0<\/td>\n<td style=\"width: 12.9568%;\">($17,544)<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.9236%;\">Excess Net Income<\/td>\n<td style=\"width: 20.598%;\">(\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<td style=\"width: 22.5914%;\">\u00a0<\/td>\n<td style=\"width: 20.598%;\">(\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<td style=\"width: 12.9568%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.9236%;\">Claim under line 30400<\/td>\n<td style=\"width: 20.598%;\">(XXXX)<\/td>\n<td style=\"width: 22.5914%;\">\u00a0<\/td>\n<td style=\"width: 20.598%;\">(XXXX)<\/td>\n<td style=\"width: 12.9568%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.9236%;\">Canada Caregiver Credit Reduced Base*tax rate<\/td>\n<td style=\"width: 20.598%;\">\u00a0<\/td>\n<td style=\"width: 22.5914%;\">\u00a0<\/td>\n<td style=\"width: 20.598%;\">\u00a0<\/td>\n<td style=\"width: 12.9568%;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n<li>The Supporting Person supports a dependant who is <strong>18 years of age and<\/strong> <strong>over<\/strong> at the end of the year; and\n<p>The Supporting Person is eligible to make a claim for the <strong>Canada Caregiver Amount<\/strong> on <strong>line 30450 <\/strong>for this dependant.<\/p>\n<p>The Supporting Person can claim the Canada Caregiver amount of up to $7,348 for Federal tax purposes (and up to $5,128 for Ontario), depending on the net income of the dependant.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 20%;\">2021 Canada Caregiver amount: Line 30450<\/td>\n<td style=\"width: 20%;\">\n<p>Federal<\/p>\n<p>15%<\/p>\n<\/td>\n<td style=\"width: 20%;\">\n<p>Federal-<\/p>\n<p>Income reduction<\/p>\n<\/td>\n<td style=\"width: 20%;\">\n<p>Ontario<\/p>\n<p>5.05%<\/p>\n<\/td>\n<td style=\"width: 20%;\">Ontario- Income reduction<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 20%;\">Base Amount less<\/td>\n<td style=\"width: 20%;\">$7,348<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">$5,128<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 20%;\">Dependant\u2019s Net Income<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">Net Income<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">Net Income<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 20%;\">Income Threshold<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">($17,256)<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">($17,544)<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 20%;\">Excess Income<\/td>\n<td style=\"width: 20%;\">(\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">(\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 )<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 20%;\">\n<p>Canada Caregiver Credit<\/p>\n<p>Reduced Base*tax rate<\/p>\n<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<td style=\"width: 20%;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n<li>The Supporting Person, who is single, supports an Eligible Dependant\u00a0who is <strong>under 18\u00a0years of age\u00a0<\/strong>at the end of the year; and\n<p>The Supporting Person is eligible to make a claim\u00a0 for an <strong>Eligible Dependant on\u00a0<\/strong><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/tax-packages-years\/general-income-tax-benefit-package\/5000-g\/income-tax-benefit-guide-federal-non-refundable-tax-credits.html#Line305\" target=\"_blank\" rel=\"noopener\"><strong>line\u00a030400<\/strong><\/a> for the Dependant.<\/p>\n<p>The Supporting Person can claim the Federal Canada Caregiver amount of $2,295 on <strong>line 30400<\/strong> (there is no Ontario Canada Caregiver amount) and the Federal tax credit is $344.<\/p>\n<\/li>\n<li>The Supporting Person supports <strong>an infirm child<\/strong> who is <strong>under 18 years of age<\/strong> at the end of the year; and\n<p>The child lived with both the Supporting Person and the spouse or common-law partner.<\/p>\n<p>The Supporting Person can claim the Federal Canada Caregiver amount $2,295 on <strong>line 30500<\/strong> (there is no Ontario Canada Caregiver amount) and the Federal tax credit is $344.<\/p>\n<\/li>\n<\/ol>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Home Accessibility Tax Credit (HATC):  Line 31285&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; open=&#8221;off&#8221;]<\/p>\n<p>The HATC is a non-refundable tax credit that is available to &#8220;qualifying individuals&#8221; who are:<\/p>\n<ul>\n<li>individuals who are over the age of 65 or<\/li>\n<li>individuals who are eligible for the DTC.<\/li>\n<\/ul>\n<p>The HATC is based on qualifying expenses incurred for work done or goods purchased in respect of a qualifying renovation of a housing unit located in Canada. The housing unit must be the principal residence for the qualifying individual. The renovation must allow the qualifying individual to gain access to, or to be mobile or functional within the housing unit.<\/p>\n<p>The HATC base amount is the lesser of $10,000 and the amount of the qualifying expenses.<\/p>\n<p>Ontario does not have an equivalent HATC.<\/p>\n<p>Some expenditures that qualify for the HATC can also qualify for Medical Expense Tax Credit (METC). The same expenditure can be used to qualify for two separate credits, the HATC and the METC<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 33.3333%;\">\n<p>2021 HATC<\/p>\n<p>Line 31285<\/p>\n<\/td>\n<td style=\"width: 33.3333%;\">\n<p>Federal<\/p>\n<p>Tax rate: 15%<\/p>\n<\/td>\n<td style=\"width: 33.3333%;\">Ontario<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\"><strong><em>Lesser of<\/em><\/strong>: Qualifying expenses and<\/td>\n<td style=\"width: 33.3333%;\">XXXXXX<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Base amount<\/td>\n<td style=\"width: 33.3333%;\">$10,000<\/td>\n<td style=\"width: 33.3333%;\">Nil<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Lesser Amount<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">HATC: Lesser amount*tax rate<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Who else can claim the unused HATC<\/strong>:<\/p>\n<p>An\u00a0<strong>eligible individual<\/strong>\u00a0is any of the following:<\/p>\n<ol>\n<li>a spouse or common-law partner of a qualifying individual<\/li>\n<li>a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of a qualifying individual, or of the qualifying individual&#8217;s (spouse or\u00a0common-law\u00a0partner) that has claimed the amount for an &#8220;eligible dependant,&#8221; &#8220;caregiver amount,&#8221; or amount for an &#8220;infirm dependent age 18 or older&#8221; for the qualifying individual, or could have claimed such an amount if:\n<ul>\n<li>the qualifying individual had no income<\/li>\n<li>for a qualifying individual who is a child, if that child had been 18 years of age or older in the tax year<\/li>\n<li>in the case of the &#8220;eligible dependant&#8221; amount, the individual was not married and not in a\u00a0common-law\u00a0partnership<\/li>\n<li>in the case of the amount for an &#8220;infirm dependant age 18 or older,&#8221; where the qualifying individual who is 65 years of age or older at the end of a year, and is not eligible to claim the disability tax credit, the qualifying individual was dependent on the individual because of mental or physical infirmity<\/li>\n<\/ul>\n<\/li>\n<li>if (2) does not apply, an individual who is entitled to claim the disability amount for the qualifying individual, or would be entitled if no amount was claimed for the year by the qualifying individual or the qualifying individual\u2019s spouse or\u00a0common-law partner<\/li>\n<\/ol>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Medical Expense Tax Credit (METC):  Lines 33099, 33199&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; open=&#8221;off&#8221;]<\/p>\n<p>An individual can claim a non-refundable tax credit for medical expenses paid by the individual or the spouse or common-law partner.<\/p>\n<p>There are two separate calculations:<\/p>\n<ol>\n<li><strong>Line 33099<\/strong>: The first calculation is for medical expenses paid in respect of:\n<ul>\n<li>the individual<\/li>\n<li>the spouse or common-law partner<\/li>\n<li>children under the age of 18<\/li>\n<\/ul>\n<p>The formula:<\/p>\n<p>The amount by which the eligible medical expenses in respect of the above listed people exceeds the lesser of the following two amounts:<\/p>\n<ul>\n<li>a fixed amount; and<\/li>\n<li>3% of the <strong>individual\u2019s net income<\/strong> for the year.<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 100%; height: 354px;\" border=\"1\">\n<tbody>\n<tr style=\"height: 95px;\">\n<td style=\"width: 33.3333%; height: 95px;\">Medical Expense Tax Credit \u2013 2021 Line 33099<\/td>\n<td style=\"width: 33.3333%; height: 95px;\">Federal Tax rate: 15%<\/td>\n<td style=\"width: 33.3333%; height: 95px;\">Ontario Tax rate: 5.05%<\/td>\n<\/tr>\n<tr style=\"height: 95px;\">\n<td style=\"width: 33.3333%; height: 95px;\">Excess of Eligible medical expenses over<\/td>\n<td style=\"width: 33.3333%; height: 95px;\">\u00a0<\/td>\n<td style=\"width: 33.3333%; height: 95px;\">\u00a0<\/td>\n<\/tr>\n<tr style=\"height: 71px;\">\n<td style=\"width: 33.3333%; height: 71px;\"><strong><em>Lesser of<\/em><\/strong>: Fixed amount; and<\/td>\n<td style=\"width: 33.3333%; height: 71px;\">$2,421<\/td>\n<td style=\"width: 33.3333%; height: 71px;\">$2,463<\/td>\n<\/tr>\n<tr style=\"height: 47px;\">\n<td style=\"width: 33.3333%; height: 47px;\">3% Individual\u2019s Net Income<\/td>\n<td style=\"width: 33.3333%; height: 47px;\">\u00a0<\/td>\n<td style=\"width: 33.3333%; height: 47px;\">\u00a0<\/td>\n<\/tr>\n<tr style=\"height: 23px;\">\n<td style=\"width: 33.3333%; height: 23px;\">Excess<\/td>\n<td style=\"width: 33.3333%; height: 23px;\">\u00a0<\/td>\n<td style=\"width: 33.3333%; height: 23px;\">\u00a0<\/td>\n<\/tr>\n<tr style=\"height: 23px;\">\n<td style=\"width: 33.3333%; height: 23px;\">METC (Excess*tax rate)<\/td>\n<td style=\"width: 33.3333%; height: 23px;\">\u00a0<\/td>\n<td style=\"width: 33.3333%; height: 23px;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n<li><strong>Line 33199<\/strong>: The second calculation is for medical expenses paid for other eligible dependants.\n<p>For this purpose, a\u00a0<strong>dependant<\/strong>\u00a0of an individual for a particular tax year is defined to be a person who is:<\/p>\n<ul>\n<li>a child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew of the individual or of the individual\u2019s spouse or\u00a0common-law\u00a0partner;<\/li>\n<li><u>dependent on the individual for support<\/u> at some time in the year; and<\/li>\n<li>a resident of Canada at some time in the year (unless the dependant is the child or grandchild or spouse or common-law partner of the individual)<\/li>\n<\/ul>\n<p>The formula:<\/p>\n<p>The amount by which the individual\u2019s eligible medical expenses in respect of the dependant exceeds the lesser of:<\/p>\n<ul>\n<li>a fixed amount; and<\/li>\n<li>3% of the <strong>dependant\u2019s net income<\/strong> for the year<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 33.3333%;\">Medical expense tax credit \u2013 2021 Line 33199<\/td>\n<td style=\"width: 33.3333%;\">Federal:\u00a0 Tax rate 15%<\/td>\n<td style=\"width: 33.3333%;\">Ontario: Tax rate 5.05%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Excess of Eligible Medical expenses over<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\"><strong><em>Lesser of<\/em><\/strong>: Fixed amount; and<\/td>\n<td style=\"width: 33.3333%;\">$2,421<\/td>\n<td style=\"width: 33.3333%;\">$2,463<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">3% of dependant\u2019s net income<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">Excess<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 33.3333%;\">METC: Excess*tax rate<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<td style=\"width: 33.3333%;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n<\/ol>\n<p>[Ontario: Maximum Eligible Medical Expense for other dependants is $13,274]<\/p>\n<p><strong>General rules:<\/strong><\/p>\n<ul>\n<li>Generally, all\u00a0<a href=\"https:\/\/www.taxtips.ca\/filing\/eligible-medical-expenses.htm\" target=\"_blank\" rel=\"noopener\">eligible medical expenses<\/a>can be claimed, even if they were incurred outside of Canada.\u00a0 When medical expenses are reimbursed by an insurance plan, only the portion not reimbursed can be claimed<\/li>\n<li>Medical expenses can be claimed if they were\u00a0paid\u00a0within any 12-month period ending in the calendar year.<\/li>\n<\/ul>\n<p><strong>Interaction between the METC and the DTC and other deductions<\/strong><\/p>\n<ul>\n<li>As mentioned in the section about the DTC, where any person claims the remuneration for an attendant or for care in a nursing home for the person with a disability for purposes of the METC, no one can claim the DTC\n<ul>\n<li>There is an exception where the amount claimed as an eligible medical expense is the lesser of the amount paid as remuneration and $10,000, the DTC may also be claimed. (For residents of Ontario, the provincial limit is $15,046).<\/li>\n<\/ul>\n<\/li>\n<li>Where the medical expenses are claimed as eligible medical expense for purposes of the METC, these medical expenses must not have been used in calculating the individual\u2019s <u>disability supports deduction<\/u>.<\/li>\n<\/ul>\n<p><strong>Special rules that allow the medical expenses to be claimed for more than one tax credit:<\/strong><\/p>\n<ul>\n<li>As mentioned in the section about the Home Accessibility Tax Credit (HATC), some expenditures that qualify for the HATC can also qualify for METC.<\/li>\n<\/ul>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Disability Support Expense:  Line 21500&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; open=&#8221;off&#8221;]<\/p>\n<p>If an individual has an impairment in physical or mental functions, the <u>individua<\/u>l may be able to deduct the expenses paid in the year so that the individual is able to:<\/p>\n<ul>\n<li>work<\/li>\n<li>go to school<\/li>\n<li>do research for which a grant was received<\/li>\n<\/ul>\n<p>The list of eligible expenses includes Attendant expenses.\u00a0 Please see https:\/\/www.canada.ca\/&#8230;\/line-21500-disability-supports-deduction.html<\/p>\n<p>The individual should use\u00a0<a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/forms\/t929.html\" target=\"_blank\" rel=\"noopener\">Form\u00a0T929, Disability Supports Deduction<\/a>, to calculate the deduction.<\/p>\n<p><strong>How to claim the Disability Support Expense:<\/strong><\/p>\n<p>The Disability Support Expense is an expense, not a tax credit, and is used as a deduction to calculate Net Income.<\/p>\n<p>The individual should enter the amount from\u00a0line 12\u00a0of Form\u00a0T929, Disability Supports Deduction, on\u00a0line 21500\u00a0of the\u00a0tax return.<\/p>\n<p>Expenses must be claimed in the same year they are paid.<\/p>\n<p>Unused\u00a0amounts cannot be applied to another year.<\/p>\n<p>The individual cannot claim amounts for which anyone was reimbursed or entitled to be reimbursed by a\u00a0<strong>non-taxable\u00a0<\/strong>payment, such as insurance<\/p>\n<p><strong>Interaction between Disability Support Expenses and METC<\/strong><\/p>\n<p>The individual <strong>cannot<\/strong>\u00a0claim amounts that were claimed by any person as medical expenses (<a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/about-your-tax-return\/tax-return\/completing-a-tax-return\/deductions-credits-expenses\/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html\" target=\"_blank\" rel=\"noopener\">lines\u00a033099 or\u00a033199<\/a>) as Disability Support expenses. This includes Attendant expenses.<\/p>\n<p>However, the individual can claim the medical expense on either line 21500 (Disability Support expenses) or\u00a0<a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/about-your-tax-return\/tax-return\/completing-a-tax-return\/deductions-credits-expenses\/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html\" target=\"_blank\" rel=\"noopener\">line 33099<\/a> (Medical expenses under the first calculation). They could also split the claim between these two lines, as long as the total amount claimed is not than the total expense.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;The Federal Refundable Medical Expense Supplement: Line 45200&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; open=&#8221;off&#8221;]The Federal Refundable Medical Expense Supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses.\u00a0All\u00a0of the following conditions must apply:<\/p>\n<ul>\n<li>The individual made a claim for medical expenses on\u00a0line 33200\u00a0or for the disability supports deduction on line 21500.<\/li>\n<li>The individual was a resident in Canada throughout 2021.<\/li>\n<li>The individual was 18 years of age or older at the end of 2021<\/li>\n<li>The individual must have employment or self-employment income exceeding $3,751.<\/li>\n<\/ul>\n<p>For 2021, the maximum Refundable Medical Expense Supplement:<\/p>\n<p>The\u00a0<strong><em>lesser<\/em><\/strong>\u00a0of:<\/p>\n<ul>\n<li>$1,285, or<\/li>\n<li>25% of both medical expenses (line 33200) and disability supports expenses (line 21500)<\/li>\n<\/ul>\n<p><strong>Less<\/strong><\/p>\n<p>5% of combined net income (taxpayer and spouse) in excess of $28,446<\/p>\n<p>The Refundable medical expense supplement is eliminated when the combined net income reaches $54,146.[\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; fullwidth=&#8221;on&#8221; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#c38f5b&#8221; global_module=&#8221;1264&#8243; saved_tabs=&#8221;all&#8221; collapsed=&#8221;off&#8221;][et_pb_fullwidth_header title=&#8221;We know where you&#8217;re coming from. We&#8217;ll get you where you need to go.&#8221; subhead=&#8221;It&#8217;s time to secure the future, support your family and move forward with confidence&#8221; text_orientation=&#8221;center&#8221; button_one_text=&#8221;Book a Call&#8221; button_one_url=&#8221;https:\/\/calendly.com\/erin-blair&#8221; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; title_font_size=&#8221;46px&#8221; title_line_height=&#8221;1.3em&#8221; content_font_size=&#8221;1px&#8221; subhead_font_size=&#8221;22px&#8221; subhead_line_height=&#8221;2.5em&#8221; link_option_url_new_window=&#8221;on&#8221;][\/et_pb_fullwidth_header][\/et_pb_section]<\/p>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>Disability Tax CreditPerhaps one of the most valuable tax credits available to people with eligible disabilities and their families is the Disability Amount. This credit is most often called the Disability Tax Credit (DTC).\u00a0 It is a non-refundable tax credit which can reduce the amount of tax that a person with the eligible disability has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:divi\/placeholder \/-->","_et_gb_content_width":""},"_links":{"self":[{"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/pages\/1666"}],"collection":[{"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/comments?post=1666"}],"version-history":[{"count":9,"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/pages\/1666\/revisions"}],"predecessor-version":[{"id":1684,"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/pages\/1666\/revisions\/1684"}],"wp:attachment":[{"href":"https:\/\/brightfuturesplan.com\/wp-json\/wp\/v2\/media?parent=1666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}