Disability Tax Credit
Jul 29, 2020

Canadians who are certificate holders of the Disability Tax Credit (DTC) as of June 1, 2020 will receive a one-time tax-free payment of up to $600, which will be reduced by the one-time tax-free payments for seniors eligible for OAS and GIS.

For those not currently enrolled in the DTC program, eligibility for the above one-time payment has been expanded to include Canadians with disabilities who are recipients of any of the following programs or benefits:

  • a disability tax credit certificate provided by CRA
  • Canada Pension Plan disability benefit
  • disability supports provided by Veterans Affairs Canada

Canadians with disabilities who are eligible for the disability tax credit but have not yet applied, will have a 60-day window of opportunity to do so. This gives people until September 25, 2020 to apply for the disability tax credit.  There may be many people who have not yet applied for this credit, because their income is low enough that the non-refundable credit would not provide them any benefit. However, to have the disability tax credit applied retroactively, a form T1Adj must be filed for each previous tax year in which the person qualifies(d).

To qualify for this non-refundable tax credit, a form T2201 Disability Tax Credit must be completed, certified, and submitted.

Contact your Stark & Marsh advisor today if you have questions about your eligibility or the enrollment process.

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