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Advocating for Yourself - The Disability
Tax Credit and You
The federal disability tax credit (DTC) is
a recognition by the federal government that people who are disabled
have out-of-pocket costs that people who aren't disabled don't
have. A person who has a mobility impairment may have to take
accessible taxis while a non-disabled person can take public
transportation. While the DTC does not compensate for the costs
of having a disability, it does provide some tax relief for people
who qualify for the credit. Canada Customs and Revenue Agency
(CCRA) administers the disability tax credit.
The Multiple Sclerosis Society of Canada is
concerned that currently many people with MS who should qualify
for the disability tax credit are being denied because of the
unpredictable and episodic nature of MS and because the criteria
to qualify have become more strict. We are working to have changes
made to the DTC, however, right now this is how the system works.
Background
The federal government introduced the first version of a disability
deduction in 1944 for people who were blind. Over the years,
the disability deduction has been transformed into a non-refundable
tax credit and has been expanded to cover additional types
of disabilities. However, in all cases to qualify for the disability
tax credit, a person must have a disability that is severe
and prolonged as stipulated by the Income Tax Act.
Frequently Asked Questions about DTC
Here are some common questions and answers
about the disability tax credit and the appeal process as well
as contacts for more information.
Who is eligible for the disability tax
credit?
To be eligible, you have to be certified by a qualified person
(defined below) that you are either:
- Blind all or almost all the time, even with corrective
lenses or medication. The impairment must be prolonged.
- Have a severe and prolonged mental or physical impairment
which makes you markedly restricted in basic activities of
daily living (as defined by CCRA).
- Basic activities of daily living are: seeing, walking,
speaking, perceiving, thinking and remembering, hearing, feeding
and dressing, eliminating bodily waste.
The DTC can be claimed by anyone of any
age who meets the eligibility criteria. For example, a child
who meets the eligibility criteria can claim the credit and
transfer it to a supporting parent or guardian to reduce the
amount of tax he/she has to pay.
Who is a "qualified person" who
can certify my application for the DTC?
Qualified persons are health care professionals such as
medical doctors, optometrists, audiologists, occupational therapists,
psychologists and speech-language pathologists.
What is the process for applying for
the disability tax credit?
If you think you would qualify for the DTC, you must obtain
the Disability Tax Credit Certificate (T2201). It is available
from tax offices across Canada, by calling 1 800 959-2221 (1
800 267-1267 for French services) or from the Canada Customs
and Revenue Agency web site at www.ccra-adrc.gc.ca/disability You
need to fill out Part A which provides basic information such
as your name, address, date of birth, Social Insurance Number
and your authorization for the qualified person to disclose
the information required for Part B. You will then need to
ask the health care professional you have chosen (for most
people with MS this would be a neurologist) to fill out Part
B.
Part B consists first of a series of questions
of how well you can carry out basic activities of daily living.
This part of the form tries to capture how severe your
disability is. The remainder of Part B asks the health care
professional to provide information about the duration of the
disability, that is whether it is prolonged and whether
the impairment is permanent or likely to improve.
What are some of the
problems people with MS have in qualifying for the DTC?
Because of the unpredictability of MS and its variability from
day-to-day, it may be hard for a health care professional to
answer with a simple "yes" or "no" to the
questions on the form. Fatigue is a major problem for many
people with MS, and it may make it difficult to carry out some
of the basic activities of daily living. However, there is
no place on the form to indicate the impact of fatigue.
In addition, some people with MS have been
disqualified for the DTC if their doctors marked "yes" to
the question
"Can your patient walk?" Doctors are instructed to
answer "no" only if, all or almost all the
time, even with therapy, medication, or a device, your patient
cannot walk 50 metres on level ground, or he or she takes an
inordinate amount of time to do so."
What is important for me to discuss with
my health care professional before he/she fills out the form?
First, decide who the appropriate health care professional
is. For most people with MS, this probably would be your neurologist
or a nurse at one of the MS clinics working closely with a
neurologist. The health care professional should be familiar
with how MS impacts all your activities of daily life.
When discussing the form with your doctor,
you might wish to discuss in detail how MS affects your mobility
and the impact fatigue might have on your ability to walk and
to carry out other basic activities of daily living. Encourage
your health care professional to attach a note explaining the
impact that MS has on your life. The note will have to be attached
because unfortunately the current T2201 does not have room
for explanations.
I have received the DTC for a number
of years. Won't I automatically qualify if I am reassessed?
If you have qualified for the DTC previously, do not assume
you will automatically re-qualify. Your doctor or other health
care provider must answer a series of questions about the nature
of the impairment which must be prolonged and which
causes you to be markedly restricted in any of the basic
activities of daily living.
If I receive CPP or QPP disability benefits,
will I automatically qualify for the DTC and vice versa?
No, the two programs are separate. You could still be working
and qualify for the DTC. For example, you may use a wheelchair
and be employed. You should qualify for the DTC if you cannot
walk 50 metres, but you wouldn't qualify for the Canada Pension
Plan or Quebec Pension Plan disability benefit because you
are working. The contrary is also true. You may receive CPP
or QPP disability benefits, but not qualify for the DTC because
under the current interpretation you are not considered "markedly
restricted" in carrying out the basic activities of daily
living.
What can I do if I apply and am turned
down or if I have been re-assessed and then been disqualified
from receiving the DTC?
You can appeal the decision made by CCRA. Here are the steps:
-
The first step is to file a Notice of Objection with the
Appeals Section of your regional tax office of CCRA within 90
days of the date of the Notice of Assessment from CCRA
disallowing the tax credit.
-
You can obtain a copy of a Notice of Objection from the
regional tax office or send a letter instead. You will
find the address of the regional tax office on the letter
that accompanies the Notice of Assessment. You will need
to provide reasons for your objection in detail, personal
contact information, your Social Insurance Number and the
taxation year(s) under appeal.
-
In providing details for the objection, you should stress
the disabling impact that MS has on the basic activities
of daily living. Supporting medical documents should be
provided.
Your Notice of Objection will be reviewed,
and you will then receive either a Notice of Reassessment which
means you will receive the disability tax credit, or a Notice
of Confirmation confirming the original Notice of Assessment
saying you no longer qualify for the DTC
What can I do if I lose my appeal?
If you receive a Notice of Confirmation, you can file a Notice
of Appeal with the Tax Court of Canada within 90 days of
the date of the Notice of Confirmation. The process for the
Notice of Appeal is similar to that of the Notice of Objection.
The form is available from your regional tax office, but
a letter is also acceptable.
-
There is a Formal and an Informal Procedure. Most people
request the Informal Procedure. You can also request that
the $100 Tax Court filing fee be waived if it will cause
you financial hardship. You will have to explain the reasons
you are asking for the filing fee to be waived. For example,
you may be on a fixed income or have limited financial
resources.
-
You must submit the original and two copies of the Notice
of Appeal to the Tax Court of Canada in your area. Be sure
to keep copies of all documents. You will receive a Notice
of Hearing with the date and location of your hearing.
The lawyer acting on behalf of CCRA will also contact you.
-
You are required to provide copies of all documents to
the CCRA lawyer prior to the hearing. Make sure you have
an extra set of copies of all documents available for the
judge at the time of the hearing.
The evidence you present at the Tax Court
should focus on the severity of your disability. For example,
if your doctor checked "yes"
to the question on the T2201 form that you can walk 50 metres
on level ground, you should provide additional medical evidence
about how difficult this is and how fatigue impacts your ability
to walk or to carry out the other basic activities of daily
living such as feeding and dressing yourself.
Who can assist me?
You can contact the Individual and Family Services Department
of your nearest chapter or division office of the Multiple
Sclerosis Society of Canada (call toll free 1-800-268-7582)
for basic assistance with the process. If you are registered
at one of the MS clinics, the doctors or nurses can also
provide useful information for the medical evidence you will
need when filling out the T2201 form or for making an appeal.
What is the Multiple Sclerosis Society
of Canada doing to make the DTC process fairer for people
with MS?
The MS Society is working to persuade CCRA officials that people
with MS are being discriminated against by the current T2201
form and a definition of disability that is inflexible and
does not take into account the unpredictability of the disease.
The MS Society has also taken this argument to the Sub-Committee
on the Status of Persons with Disabilities which has recently
issued a report Getting It Right for Canadians: The Disability
Tax Credit calling for major reform to the disability tax
credit. The MS Society is also working with a group of other
concerned health charities about the issue. The
report can be viewed here.
Useful contact information
- Contact your nearest Canada Customs and Revenue Agency
regional office for the necessary forms and information about
the application and appeal process. You can find the telephone
number in the blue (government) pages of your telephone book
under Canada Customs and Revenue Agency. You can also obtain
the T2201 form and the Notice of Objection form (T400A) at
the CCRA web site at www.ccra-adrc.gc.ca and
then click on the Forms and Publications section. Information
about disability credits is available at www.ccra-adrc.gc.ca/disability
- A useful private web site about this issue is www.disabilitytaxcredit.com
- Contact the MS Society to learn more about efforts to make
the disability tax credit fairer to people with MS. You can
reach your division office by calling 1 800 268-7582.
Disclaimer: The information provided
here is general in nature and should not be taken as advice
that can cover individual situations. Please consult your
personal tax advisor or attorney for individualized advice.
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