Disability Tax Credit (DTC)

The DTC is a federal non-refundable tax credit that helps people with disabilities, and those supporting them, to reduce the amount of income tax they may have to pay.

The DTC can be claimed for:

• yourself,
• a dependant, and
• your spouse or common-law partner.

To get help, ask a lawyer now.

What are the criteria to be eligible for the DTC?

To be eligible for the DTC a person must be one of the following:

• blind
• markedly restricted in at least one of the basic activities of daily living
• significantly restricted in two or more of the basic activities of daily living (such as walking, hearing or speaking, and can include a vision impairment)
• in need of life-sustaining therapy.

In addition, the disability must be:

• prolonged, meaning the impairment has lasted, or is expected to last for a continuous period of at least 12 months, and
• present all or substantially all the time (at least 90% of the time).

How to claim the DTC

Before the DTC can be claimed on your income tax return, you must prove that the person with the disability is eligible by completing Form T2201, Disability Tax Credit Certificate and submitting it to Canada Revenue Agency (CRA).

The form consists of two parts:

Part A, which is completed by the person with the disability.

Part B, which is completed by a medical practitioner who must certify that the claimant has a severe and prolonged impairment.

For more information on the Disability Tax Credit, including complete eligibility requirements and amounts payable, refer to Canada Revenue Agency.

Canada Disability Benefit (CDB)

The Canada Disability Benefit (CDB) was created to provide financial support to people with disabilities who are between 18 and 64 years old. Applications must be received and approved by June 30, 2025 to receive the first payments in July 2025.

The CDB was established by the Canada Disability Benefit Act, an Act created to reduce poverty and to support the financial security of persons with disabilities.

What are the criteria to be eligible for the CDB?

To qualify for the CDB:

• you must be between 18 and 64 years old
• you must have been approved for the Disability Tax Credit
• you and your spouse or common-law partner (if applicable) must have filed your 2024 federal income tax return
• you must be a Canadian resident for income tax filing purposes
• you must be one of the following:
  • a Canadian citizen
  • a permanent resident
  • an individual registered or entitled to be registered under the Indian Act
  • a protected person
  • a temporary resident who has lived in Canada throughout the previous 18 months

How much can you receive?

Benefit amounts are based on your adjusted family net income. The maximum amount you could receive from July 2025 to June 2026 is $2,400 ($200 per month).

The program is administered by Service Canada. Visit Canada.ca for more information and to apply for the Canada Disability Benefit.

Get help

For advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact KPK Law.

Personal and business tax issues are vast and complicated. To get help, ask a lawyer now.

								
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