Disability tax credit
The CRA recently consulted with Canadians regarding the Disability Tax Credit Promoters Restrictions Act in advance of establishing the legislation's supporting regulations and to solicit feedback on how to simplify the disability tax credit application process. These consultations concluded on Monday December 15, 2014. For more information, go to Disability tax credit consultations.
Video series: Tax measures for persons with disabilities – DTC and the disability amount
The disability tax credit (DTC) is a non-refundable tax credit used to reduce income tax payable on the income tax and benefit return. A person with a severe and prolonged impairment in physical or mental functions may claim the disability amount once they are eligible for the DTC.
The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face. 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.
If you are a qualified practitioner and you need more information, see Information for Qualified Practitioners.
Who is eligible?
Answer a few questions to find out if the person with the disability may be eligible.
If you receive Canada Pension Plan or Quebec Pension Plan disability benefits, workers' compensation benefits, or other types of disability or insurance benefits, it does not necessarily mean you are eligible for the DTC. These programs have other purposes and different criteria, such as an individual's inability to work.
How to apply?
Follow the step by step instructions to apply for the DTC.
What happens after Form T2201 is sent?
Follow the step by step details of the process once the form is received at CRA.
How to claim the disability amount?
You can claim the disability amount on your income tax and benefit return once the person with the disability is eligible for the DTC.
- To claim the disability amount for yourself, see line 316.
- To claim the disability amount for your dependant, see line 318.
- To claim the disability amount for your spouse or common-law partner, see line 326.
Forms and publications
- Guide RC4064, Medical and Disability - Related Information
- Form T2201, Disability Tax Credit Certificate
- General Income Tax and Benefit Guide
- Income Tax Folio S1-F1-C2, Disability Tax Credit
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