Disability Tax Credit (DTC) Application Guide

The Disability Tax Credit (DTC) is a tax credit that lowers the amount of income tax you or someone supporting you may owe to the government.  Think of it like a discount on your taxes.

To get the DTC, you need to apply to the Canada Revenue Agency (CRA).

This guide explains the steps of applying for the DTC in British Columbia. For a visual overview, you can also reference the flowchart below.

At a Glance Guide: DTC Application Process

The disability amount that you can claim on your tax return in 2024 are below:

• Basic amount: $9,872 (increased from $9,428 in 2023)

• Supplement for applicants under 18: $5,758 (increased from $5,500 in 2023)

This means:

• Adults (18 and older) applying for the first time in 2024 can get a credit of up to $9,872 to reduce their taxes.

• Eligible applicants under 18 years old can receive an even higher credit – the basic amount ($9,872) plus the supplement ($5,758) for a total of $15,630 in 2024.

Here are the key steps to apply for the DTC in British Columbia:

Step 1: Understand Eligibility for DTC

To qualify for the DTC, your disability must be both long-lasting and serious. This means that a qualified medical professional must certify that it is expected to last at least 12 months and significantly affects your daily life in one of two ways:

• Markedly restricted in one daily activity:  Even with help, therapy, and devices, you're unable to do at least one essential daily task 90% of the time, or it takes you 3 times longer to complete the task compared to someone without your disability. These daily activities include:

  • Speaking Hearing Seeing Walking Using the toilet Eating or preparing food Dressing Performing daily mental tasks

• Combined limitations in multiple activities:  Even if no single activity is severely restricted for you, the combination of limitations in two or more daily activities makes it very difficult for you to function overall. These limitations exist together at least 90% of the time.

There's one other way to qualify:

Life Sustaining Therapy: You may be eligible for the DTC if you require therapy to support a vital bodily function for 14 hours per week. This can include treatments like:

• Dialysis

• Insulin therapy

• Oxygen therapy

• Chest physiotherapy
  

Step 2: Find a Medical Professional

 To be eligible for DTC, you will need to find a qualified healthcare professional who can confirm that your disability is severe, prolonged, and affects your ability to perform one or more basic activity of daily living. Qualified medical professionals can include:

• Doctors

• Nurse practitioners

• Other specialists that can include an optometrist, audiologist, occupational therapist, physiotherapist, psychologist, or speech-language pathologist.

Step 3: Obtain form Disability Tax Credit Certificate (Form T2201)

There are two ways to access the required Disability Tax Credit Certificate (Form T2201) :

• Digital Access or by Phone: You can complete Part A of the application online or by phone through the CRA's "My Account".

• Paper Application: You can download and print the full 16-page Disability Tax Credit Certificate (Form T2201) from the CRA website. This form has two parts. Part A is for you to fill out. Part B is completed by a medical professional.

Important Tip:

• Choose One Method: Submit either a digital or paper application, not both. Doing both will delay processing. If you've already mailed a paper form, don't submit a digital application.

Step 4: Complete Part A of the Disability Tax Credit Certificate (Form T2201) 

Part A of the Form T2201 needs to be filled out and signed by you, or by your legal representative if you cannot do so yourself. There are three ways to complete Part A:

• Online: You can access and complete Part A electronically through your "My Account" on the Canada Revenue Agency (CRA) website. This is the fastest and easiest option, and you'll receive a reference number upon completion.

• By Phone: Call the CRA and request assistance completing Part A over the phone. They will ask you questions and fill out the information for you.

• Paper Form: Download and print the full form (Part A and B) and complete Part A yourself.
  

Step 5: Have a Qualified Professional fill out Part B of the Disability Tax Credit Certificate (Form T2201) 

Part B of the Form T2201 needs to be filled out by a qualified medical professional, such as a doctor, nurse practitioner, or specialists, who can confirm your disability and provide details on how your disability affects your daily activities.

Online Completion for Medical Professionals

Medical professionals can now complete Part B electronically through the Canada Revenue Agency (CRA) website. This can be a faster and more convenient option.

What to provide to your Medical Professional:

• Provide your reference number you received when completing Part A (online or by phone). This allows them to link your application electronically.

• If you have chosen to fill out a paper copy or if they are not set up for online filing, they can still complete a paper copy of Part B.

Step 6: Submit your Completed Application

Once Part A and B of the Form T2201 have been completed, you can submit the forms. Following are the two ways of doing this:

• Online Submission (Fastest): If you and your doctor have filled out the online form, submit the entire application electronically through your CRA "My Account." After completing Part B, your doctor can also submit the application for you.

• Mail-in Option: Mail the completed form (both parts A and B) to the appropriate CRA Tax Centre. Residents of British Columbia can mail their application to the Winnipeg Tax Center. The address is: Winnipeg Tax Centre: Post Office Box 14001 Station Main Winnipeg MB R3C 3M2

What to Expect After Submitting:

• Processing Time: The CRA aims to review your application and notify you of their decision within 8 weeks of receiving it.

• Possible Outcomes: There are two possible outcomes:

  • Approval: If approved, you can claim the DTC benefit when filing your tax return.

  • Denial: If denied, you have options to reapply, request a review, or file a formal objection.

Future Updates:

• You may need to reapply for the DTC periodically to maintain your eligibility.

• In some cases, you might transition to other benefits programs in the future.

Important Tip:

Keep a copy of your completed application and any related documents for your records.