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. 

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 have his disability re-assessed 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 (again not sure that is the right phraseology) 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.

RDSP Graphic

An Excellent Graphic from our friends at Moneysense about the RDSP benefits



The CRA Does Not Like Change

Here is a Tuesday Quickie for you, I have pointed this one out a few times, but my Theory has been proven:

Whenever you have a major change in your life that causes a change in  your tax status, the CRA will ask for you to send receipts to verify it (i.e. a Review not an audit).

A simple theory, but it has been proven countless times for me:

  • Each time one of my kids started at University, either I or my child was asked to supply T2202A forms from the school.
  • When they moved from residence to a rental off campus, receipts for the rental
  • When I claimed my son’s school fees as a medical expense.
  • My middle daughter has just started a Chiropractic College, and the tuition fees are MUCH higher, thus the CRA wants receipts.

It’s not a big thing, and fairly easy to remedy, just keep this in mind, and keep those receipts.


What is My Tax Bracket ?

Saw that question in Money Magazine as a frequently asked question, so let me help you out (for those in Canada), with a few helpful links and a few more helpful tables and such. As a precursor to these hints, you should always check with the CRA or a licensed Tax Accountant if you have questions about your Tax levels and such.

Where do you find out about the current Federal Income Tax Rates (for you as an Individual, not you as a corporation) ? Go to this page for individuals. That page will tell you the following (for 2015):

Federal tax rates for 2015

  • 15% on the first $44,701 of taxable income, +
  • 22% on the next $44,700 of taxable income (on the portion of taxable income over $44,701 up to $89,401),+
  • 26% on the next $49,185 of taxable income (on the portion of taxable income over $89,401 up to $138,586), +
  • 29% of taxable income over $138,586.
Tax Bracket

The Infamous Bad Pun

Remember that is Taxable Income, so this is what is left after you have taken your deductions, and credits and such. Remember also that if you earn less than the Basic Personal Amount (line 300) you don’t have to pay taxes (for kids with summer jobs and such).

However, that is not all, remember that you have Provincial Income Tax as well, and here are the 2015 numbers to keep in mind too:

Provincial/territorial tax rates (combined chart)
Provinces/territories Rate(s)
Newfoundland and Labrador 7.7% on the first $35,008 of taxable income, +
12.5% on the next $35,007, +
13.3% on the amount over $70,015
Prince Edward Island 9.8% on the first $31,984 of taxable income, +
13.8% on the next $31,985, +
16.7% on the amount over $63,969
Nova Scotia 8.79% on the first $29,590 of taxable income, +
14.95% on the next $29,590, +
16.67% on the next $33,820, +
17.5% on the next $57,000, +
21% on the amount over $150,000
New Brunswick 9.68% on the first $39,973 of taxable income, +
14.82% on the next $39,973, +
16.52% on the next $50,029, +
17.84% on the amount over $129,975
Quebec Go to Income tax rates (Revenu Québec Web site).
Ontario 5.05% on the first $40,922 of taxable income, +
9.15% on the next $40,925, +
11.16% on the next $68,153, +
12.16% on the next $70,000, +
13.16 % on the amount over $220,000
Manitoba 10.8% on the first $31,000 of taxable income, +
12.75% on the next $36,000, +
17.4% on the amount over $67,000
Saskatchewan 11% on the first $44,028 of taxable income, +
13% on the next $81,767, +
15% on the amount over $125,795
Alberta 10% of taxable income
British Columbia 5.06% on the first $37,869 of taxable income, +
7.7% on the next $37,871, +
10.5% on the next $11,218, +
12.29% on the next $18,634, +
14.7% on the next $45,458, +
16.8% on the amount over $151,050
Yukon 7.04% on the first $44,701 of taxable income, +
9.68% on the next $44,700, +
11.44% on the next $49,185, +
12.76% on the amount over $138,586
Northwest Territories 5.9% on the first $40,484 of taxable income, +
8.6% on the next $40,487, +
12.2% on the next $50,670, +
14.05% on the amount over $131,641
Nunavut 4% on the first $42,622 of taxable income, +
7% on the next $42,621, +
9% on the next $53,343, +
11.5% on the amount over $138,586


A commenter has pointed out another excellent resource in this area TaxTips.ca , check them out too!


Tax Deadline

Tax Deadline is not today (for 2015) thanks to a badly phrased set of instructions, the CRA has extended the deadline for 2015 to May 5th, so you have a whole weekend to finish, and thus many less reasons to not do your taxes (i.e. I don’t have the time).

You need help with your taxes you say? Well, here is a veritable treasure trove of useful articles by me to help you out with your tax preparation this year (don’t say I didn’t try to help):

Hour Glass

Just a Little More Time for Your Taxes

You have the whole weekend to finish this, go get Turbotax, H&R Blocks Software, Ufile or whatever program you wish and get it done!



Best Excuses for NOT Doing Taxes on Time

For all of those who have not finished their taxes (in Canada) yet (April 30th deadline looms large), I would like to give you some of the excellent (what is the font for sarcasm) excuses that I have heard over the past years from friends and co-workers. (maybe you should read Myths About Your Taxes before you read this great list, just to make sure you are sure you don’t want to do your taxes):

Bad Dog eats taxes

Really, that is your excuse?
Photo courtesy Forbes

  • I don’t owe money, so I just couldn’t be bothered.
    Question: How do you know that you don’t owe any tax if you haven’t done your return?
  • My taxes are simple, so I am sure I don’t owe any money, so why bother ?
    Question: What if they owe you money? Don’t care? Want to send money to the “Send Big Cajun Man on Vacation fund”, if money means so little to you?
  • If I owe money, the CRA will tell me, soon enough
    Statement: WTF? Yes, and the CRA will also impose their penalties starting May 1st (or earlier) if you owe them money.
  • I might do it wrong, then the CRA will get mad at me
    Comment: The CRA might get mad at you, but my guess is their penalties won’t come into play, if you submitted your forms on time (although they may make you redo it, correctly)
  • I am on a worldwide cruise and can’t submit my taxes until I get back in September
    Comment: CRA’s answer might be, “Maybe you should have thought about this before you went away?”
  • The CRA always extends the deadline, so I don’t have to rush
    Comment: What if they don’t? (see penalties comment previously)
  • The dog ate my tax receipts!
    Comment: Get a new dog?
  • The dog at my computer?
    Comment: Umm…. next?
  • I didn’t submit my taxes last year, and they didn’t bother me, why should I bother this year? (repeat that excuse for 6 years)
    Question: You enjoy loaning money to the Government? You most likely are owed money, but the CRA doesn’t need to tell you that, do they?

Any other great excuses out there about not doing your taxes on time, that I might have missed? I guess with these great excuses you won’t need to Search For a Good Tax Preparer either?

Disclaimer: This article neither condones, nor espouses any of these lame excuses, do your taxes on time!


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