How To Apply For The Canadian Disability Tax Credit (DTC)
Note
Almost everything described in this step is also documented on the CRA Website:
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/how-apply-dtc.html
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/review-decision-dtc.html
This guide is meant to supplement that documentation with additional tips and tricks. It is recommended you review the CRAs instructions as well before continueing with this Guide.
What is the Canadian Disability Tax Credit ?
From the website:
The disability tax credit (DTC) is a non-refundable tax credit that helps people with disabilities, or their supporting family member, reduce the amount of income tax they may have to pay.
1) Getting Started
One of the most common reasons the Disability Tax Credit is denied, is due to doctors not providing sufficient information in the forms they must submit as part of the credit. Additionally, there are many doctors who simply do not know about the DTC. If you do not have a family doctor, this problem is only further exascerbated
Fortunatly, the Disability Alliance of BC has created a helper tool that you can fill out which provides not only information on what the Disability Tax Credit is and why it is useful, but provides formalised information about your clubfoot and how it is limiting your life for your GP to submit.
My DTC By Disability Allians of BC: https://mydtc.dabc.ca/
Complete the questionnaire and download a PDF or print off a copy of the generated letter and report for your GP
2) Start The Application
To apply for DTC, you will do so through the Canada Revenue Agency website. If you manage your taxes with the CRA online, this will be the same website as you do that. You can login with the same credentials as you do when filing your taxes.
- Login to the CRA https://www.canada.ca/en/revenue-agency.html
Tip
Before going any further, check on the CRA site that your information is correct - Name, Address, Email, Phone number. The DTC form assumes this information is up to date and correct and will use it to send notifications to you. It will not prompt you for this information while filling out the form
- Scroll down to the "Benefits and credits" section
- Select "Benefits and credits"
- Select "Apply for DTC" to open the digital form
You will be prompted with a form to fillout some basic information about yourself, along with some preferences on the DTC. For example, it will ask you whether you would like to apply for DTC for the current year or to include previous years.
Once you complete the form you will be prompted with a PDF with instructions and a reference ID you can bring to your GP. This provides instructions for them in order to find the forms online
Note
You can do all of this by mail if you prefer. Online though is substantially faster. Refer to CRA documentation if you would prefer to complete the application by mail
3) Visit Your GP
Depending on how you communicate with your GP may very on this step. It may be ideal to visit them in person in case there are other questions or clarifications needed. Some GPs offer the option to have appointments by phone and submit the forms my email. Ultimatly, the following needs to be completed:
- Provide the generated report and letter from the Disability Allians in Step 1 to your doctor
- Provide the instruction PDF from the CRA from Step 2 to your doctor
Tip
Filling out the forms may come with fees from your doctor. This is acceptable. Once you are approved, you can submit that fee as part of your Disability Tax Credit.
4) Wait And Follow Up
Applying For the DTC takes a couple of months to process, and when closer to Tax season, can take a lot longer. Applying in mid December, will have a result in early February.
Once your doctor has submitted their portion of the Disability Tax Credit, you can login to the CRA and view the Progress Tracker on the Overview page. Note, that if the CRA takes up until their estimated time or slightly longer, the progress tracker may give a rather cryptic and confusing status message. Don't worry about it, wait until the official decision letter has been made
If you applied online, you will be notified via communication within the CRA website of the results. If you are rejected, reasons will be provided as to why and the options and timelines you have to resolve or challenge the results.