Let me preface this post with a thank you to Milburn Drysdale at ASDFunding.com. His documentation is what we based most of this work on, and if anyone asks you, they should check out his site before you read anything over here about Registered Disability Savings Plans for Disability Tax Credits. I’d also like to thank my wife who has fact checked my statements. Is it time to re-apply for the disability tax credit ?
As I have mentioned my son’s disability was “verified” by the CRA in 2009. At the time it was a “conditional” verification, and the CRA said that he would need to re-apply for the disability tax credit in 10 years (i.e. back dated to 2005).
A few months ago, we received a child disability benefit notice from the CRA saying, the DTCC (Disability Tax Credit Certificate) would “expire” in December 2015 . I hadn’t thought about the fact that my son’s disability was viewed as a disability from birth, so the CRA credited me back taxes from when he was born. This meant that his disability tax credit period started from birth. Given my son has turned ten this year, it is logical that the CRA is now asking for a reassessment.
The first steps towards re-applying for the DTCC for my son was to go see our Pediatrician and have him fill out the T2201 Disability Tax Credit Certificate. Our Pediatrician could have turned us down and said, “No I won’t fill in the forms for you because in my opinion your son is no longer disabled”, however, that was not the case.
We then added to this documentation, a report from my son’s Occupational Therapist and a Speech Pathologist (Effect of Impairment Document), to help reaffirm my son’s disability diagnosis for the reapplication. It is better to have plenty of supporting documents for the application.
Is the reapplication a “slam dunk”? No, not by any means, we need to make sure that we have all supporting documentation done, and it still relies on the CRA to decide whether that documentation is sufficient or not. What if the CRA denies the reapplication for my son? A few things happen:
- No more tax deduction associated with my sons disability line 318 on my tax return.
- I would be unable to claim my son’s school and Occupational Therapy as a Medical Expense (any longer).
- Collapsing my son’s RDSP, which would entail paying back the CDSG and the CDSB that might have accumulated in that account.
- The child disability part of the Child Care Benefit will stop as well.
The advice we got from our Pediatrician (who I think I view as a subject matter expert, as he has done many of these) is you can never have too much documentation, and you must make sure the information is easy to follow for the CRA folks that will be making the decision. The goal is to have a well written clear application.
Some other notes from my wife, that I am not sure I completely comprehend, but here they are:
- There is a list of qualified practitioners on the forms (T2201). This information is on the forms, supporting documentation can be from other professionals, but you need a specific professional to sign the forms.
- Make sure you get your pediatrician or Doctor to fill in the right sections of the forms. There is nothing worse than doing all this work and have the CRA return the forms with a note saying, “You forgot to fill in the following sections:….”
The signed forms were sent via registered mail and we must now wait to see whether the Disability Tax Credit will continue for us.