Let me preface this post with a thank you to Milburn Drysdale at ASDFunding.com (or Autism Funding in BC for Dummies) 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” (for lack of a better term) by the CRA in 2009, and 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).
I thought no more about it until a few months ago, when we received a child disability benefit notice from the CRA saying, the DTCC (Disability Tax Credit Certificate) would “expire” in December 2015 , which took me unawares, but that is only because 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 means that his disability tax credit period started from birth, and given my son has turned ten this year, it is logical that the CRA is now asking for a reassessment.
So the first steps towards re-applying for the DTCC for my son’s disability (or re-apply for the disability tax credit ) is to go see our Pediatrician and have him fill out the T2201 Disability Tax Credit Certificate. That is actually me being presumptuous, because our Pediatrician could haved turned around and said, “No I won’t fill in the forms for you because in my opinion your son is no longer disabled”, or something like that, 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 as well.
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 Disabled Child Tax Credit would stop being paid
- The child disability portion 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. As with all reports, if it is well read, it will be well understood and your point will be made (as opposed to this article, which is a little confusing).
Some other notes from my wife, that I am not sure I completely grock, but here they are:
- There is a list of qualified practitioners on the forms (T2201). I get asked that question a lot, but this information is on the forms, supporting documentation can be from other folks, but you need a specific professional to sign the forms or the CRA will return it to you.
- Make sure you get your pediatrician or Doctor to fill in the right sections of the forms, 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 forms are signed, and have been mailed (certified mail) to the CRA and now we wait to see whether the Disability Tax Credit will continue for us.