My continued work with the CRA seems to have reached its logical end. Since my son’s diagnosis of being on the Autism Spectrum, we have had to reapply for his Disability Tax Credit every 5 years or so.
This year, we had to reapply for the Disability Tax Credit (DTC). Unfortunately, we let things lapse, thus stopping his RDSP payments (for now). My son is now 19 years old, so more paperwork will need to be done for his RDSP as well. Given the account is locked, not much can be done.
We were lucky that we had to redo my son’s Educational Assessment work in December. Luckily, the psychologist we had worked with was willing to redo the assessment, even though she normally doesn’t work with older kids. While she did this work, she also filled in the T2201 for the CRA.
We sent in the package a while ago and have been waiting for the reply from the CRA. Given we did this in February, I figured it might take a while. The CRA was overloaded with regular tax folks.
We got our response yesterday (May 5), and my son’s DTC was approved. This is a huge load off my mind.
The interesting twist in the story, is there seems to be no expiration date on it. Previously, his DTC would only last 5 years. Here are a couple of possible explanations:
- CRA has changed their policy on Autism Spectrum Disorder? This is possible, but I don’t recall seeing anything about this.
- This is what happens once an individual is older than 19 years? This is the most likely response.
- Did Magic Dancing Monkeys cast a spell on the CRA employee working on the file? It’s less likely but never discount this one completely.
NB: We applied for the DTC ourselves. Yes, we got a medical professional to fill in the forms, but we did not use a service. You can do this yourself.
Next Disability Tax Credit Steps
For the DTC, there is no more work, it is in place and in my son’s Tax file. I have been submitting tax returns for him, for the past 2 years. There are things to do:
- Await a new yearly grant assessment letter from the government. This will say how much money in my son’s RDSP will get matching grants. The account is locked, and I can’t deposit any money.
- Once the assessment letter arrives, start bothering Toronto Dominion DirectLine to unlock the RDSP account. I can then continue to add money to this very long-term savings vehicle.
- Apply to have my son’s school tuition be allowed as a Medical Expense. Since he changed schools, the CRA (rightly) wants proof that this school falls under the correct parameters for this tax credit.
Related RDSP Pages
- 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 in getting your Disability Tax Credit (DTC) you need to open an RDSP account with a bank, but how is that done? It is not as easy as you might think. This page outlines many issues that have arisen for my family working with an RDSP account. - Disability Tax Credit Related Topics
Thanks to 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.
- RDSP : Laying the Ground Work (first things first)
Sometime ago, I was discussing the DTC with a person who had to renew the DTC several times even though he was legally blind.
Don’t know if we are talking about the same events, but I remember several years back people with diabetes were denied when trying to get the DTC renewed. It eventually hit the news. The denials were not the result of a change in DTC regulations. It was a wholesale shift in how the criteria was being interpreted by the gov. The gov eventually backpedalled on this.
Technically speaking, if the DTC is approved without an end date, it does not mean it has been approved on a permanent basis. At their discretion, the government reserves the right to reassess one’s eligibility for the DTC.
Agreed. The diabetes thing was despicable, typical middle Manager in the Civil Service overstepping their bounds. The government and CRA always reserve the right to revisit most decisions they have made. Haven’t heard of a death certificate being revoked, but, anything is possible.
There’s a Monty Python skit in there somewhere…. “he’s not dead”, “yes he is”, “no he isn’t”, “well he’s mostly dead”
Not sure that is Satire any more…
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My understanding is the government will refrain from setting an expiry date on the DTC if they believe the person’s condition likely will not change to the extent where they no longer satisfy the eligibility criteria. What leads them to reaching this position is not clear to me, but I am not a DTC expert. I do not believe they have shifted their policy on ASD or that it has much to do with age. I have lots of clients older than your son with the DTC with an expiry date. Stories of Magic Dancing Monkeys casting spells are going around, but realistically speaking, we all know that such spells have their own expiry dates!
There are “shaggy dog” stories about amputees being asked to prove they are still limbless (pretty sure those are mythology), but there was a period for a while where Type 1 Diabetes sufferers were being denied DTC’s because they had insulin pumps. I believe this one has been reversed, as Type 1 diabetes is only “controlled” by the insulin pump, not cured.