Changes to Disability Tax Credit

in Autism, Disability Tax Credit, Registered Disability Savings Plan

The proposed 2021 Federal Budget has possible changes to how disabilities are evaluated. Specifically, “…update the list of mental functions of everyday life that is used for assessment for the Disability Tax Credit…”. When I first read the statement, I worried this was an attempt to shrink the pool, but I have been assured this is not the case.

A portion of the statement is as follows:

To help more families and people living with disabilities access the Disability Tax Credit, and other related support measures like the Registered Disability Savings Plan and the Child Disability Benefit: 

* Budget 2021 proposes to update the list of mental functions of everyday life that is used for assessment for the Disability Tax Credit. Using terms that are more clinically relevant would make it easier to be assessed, reduce delays, and improve access to benefits.

* Budget 2021 also proposes to recognize more activities in determining time spent on life-sustaining therapy and to reduce the minimum required frequency of therapy to qualify for the Disability Tax Credit. To ensure these changes enable applicants to have a fair and proper assessment of their eligibility for the Disability Tax Credit, the government will undertake a review of these changes in 2023.

It is estimated that, as a result of these measures, an additional 45,000 people will qualify for the Disability Tax Credit, and related benefit programs linked to its eligibility, each year. This represents $376 million in additional support over five years, starting in 2021-22.

Part 3: A Resilient and Inclusive Recovery

It is the final line of that statement that makes me less paranoid about this.

Caveat Disability Tax Credit

As with previous changes, these will not come into play until after the Budget (2021) is passed by parliament. What the results of the review ends up doing, remains to be seen. My concern is still with the “…Using terms that are more clinically relevant would make it easier….” phrase. This suggests the Doctor filling in the T2201 forms will need to know the correct vernacular for the forms.

  • The RDSP Page is the Overview of all articles I have written about the RDSP (including DTC and other areas).
    • RDSP : Laying the Ground Work (first things first)
      What needs to be done BEFORE you can apply for a Registered Disability Savings Plan? A major aspect of this is the Disability Tax Credit (DTC), make sure you click on this page to get started.
    • RDSP : Working with The Account
      Now that you have succeeded getting your Disability Tax Credit (DTC) you need to open an RDSP account with a bank or such, but how is that done? It is not as easy as you might think. This page outlines many of the issues that have arisen for my family working with an RDSP account.
    • Disability Tax Related Topics
      Thanks for my RDSP and DTC work I then had to learn a great deal about the tax implications of having a disabled child.
    • Autism Specific Articles
      Being the proud Father of a child on the Autism Spectrum I also ended up writing a great deal about Autism specific things as well.

{ 1 comment }

  • Susan April 20, 2021, 8:19 PM

    Fingers crossed. I wish the DTC was broader for people who are underemployed due to mental acuity and also recognized the additional costs (for parents/guardians). And better recognition of lifelong disabilities that won’t improve to avoid the repeated qualifying with inconsistent decisions. We can only hope.

    Reply

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