By: Larry MacDonald
Susan Kent of Ottawa gets extremely busy this time of year. Her firm, Ottawa Tax Services, specializes in preparing tax returns. With over 10 years of experience, you could say she knows her way around a T4, not to mention all the other forms that need to be filed to the Canada Revenue Agency (CRA).
One of her areas of expertise is the Disability Tax Credit (DTC). “Many people do not realize that they can qualify for this credit,” says Ms. Kent. “In response to the Standing Report on Canadians with Disabilities, CRA has opened the door wider to accepting claims for many disabilities.”*
If a disability falls within CRA parameters, it could result in tax savings of $1,500 to $4,000 per year under the DTC. Moreover, if the disability existed in years prior to the claim, tax returns can be reassessed as far back as 10 years and could result in tax refunds greater than $10,000. Ms. Kent’s website lists some of the refunds obtained for her clients – for example:
• $48,000 for a person with inner-ear bone degeneration that causes balance problems
• $12,800 for a person suffering from chronic migraine headaches
• $23,000 for a person suffering from ADD/ADHD
Furthermore, “if a child is registered for the DTC, you can open a Registered Disability Savings Plan (RDSP) for them.” The government will match to varying degrees your contributions. And the “withdrawals to support your disabled child will not be clawed back by social benefit programs such as OAS and ODSP.”
*Included disabilities are: ADD, ADHD FASD (Fetal Alcohol Spectrum Disorder), autism, Asperger’s Syndrome, bi-polar disorder, manic depression, anxiety disorders, irritable bowel syndrome, Type 1/2 diabetes, epilepsy and learning disabilities.
23 Responses to “ One overlooked tax credit ”
I have a Prolap Ear Canal which causes some balancing problem in daily walking. Would this qualify for Disabilty Tax Credit ? Your reply is appreciated
Peter Haynes-Stoll
By Peter Haynes-Stoll on Mar 18, 2010
This is a good benefit which would help many on Disability benefits. However, the medical form required to qualify is extremely stringent.
There are many like me who have a disability which does not fit within the narrow parameters of the medical qualifying form.
As a result one needs to be almost a quadrapalegic under constant daily care in order to meet the criteria of the medical qualifying form.
By Garry Shepp on Mar 19, 2010
Garry
Maybe you can contact Sue Kent about your situation and see what see thinks? She claims on her site she can help people fill out their forms so they have a better chance to qualify.
By Larry MacDonald on Mar 19, 2010
Peter
I’ve asked Sue Kent if she can comment on your situation. If you don’t get an answer soon from her, you can always contact her through her website (link in post)
By Larry MacDonald on Mar 19, 2010
I know another company that does this type of service as well… I think it’s really good that the government has approved this tax claim..
http://www.canadadisability.com
By Cody on Apr 20, 2010
Not all Learning disabilities qualify. It is all depending on the type of LD & I think it also depends on who is assessing the claim.
By Brenda on Apr 28, 2010
A company I have dealt with is the Benefit Agency of Canada and have received $23,000 using their services..Their website is http://www.benefitagency.ca
By Aaron on Jun 3, 2010
The key is if one qualifies for the DTC (disability tax credit) is what to do next.
What is missing is a plan. What happens to my son or daughter when I am gone?
How can we turn $20,000 int eh RDSP into $164,000 in twenty years (assuming 3%)?
How do we if incorporated pay less taxes and protect our families?
Does our accountant talk to our financial advisor or advisor talk to our accountant?
Do we have a current will?
The list goes on…
We put together financial plans that would cost at least $500 to $2500 for families who wish to protect their families pay less taxes and have more money in retirement.
http://www.disability-tax-credit.ca/
There is only a few advisors in Canada that offers this service in Canada.
By Brian Poncelet, CFP on Jun 18, 2010
i have multiple sclerious i work in a wheel-chair and own a small diner what is my benefit other than paying bills
By debbie klompmaker on Jun 28, 2010
This is a very hard tax credit to recieve and not a fair one to apply for. I have Adult ADD along with Fibromyalgia and Bouts of depressio. My son has Aspergers and he is 15. The cra sent a nother form to my Dr. and it was to do with mental capabilitys on my sone and my behalf. We were turn down as my Dr. said that if he put I need assistance at home my kids would be removed. I am am capable of working part time but in a very quiet fleaxable atmosfer. I think It is so miss leading and also the Drs. seem afraid to fill out the forms as it does not give them the right options for some patients information. The tearm Disable and who recieves it is left to perception of the Drs. and the CRA. I have talked with so many people and It should not be a fight to recieve a credit in this manner.
By Kerrie on Jul 2, 2010
I have read some of the posts, and encourage you to contact me to see if you can becoem qualfied for the tax credit. Many of the posts would qualify, it will simply depend on how the form is submitted. As for the references to site that offer thier assistance, please BEWARE. Many of these companies charge you 30% of the refunds (in one case mentioend here that would be over 8000.00!!!in fees). I do not charge in this manner, and offer this service for a fraction of what some of those companies charge (and yet still have a 100% success rate in claim submission). Please contact me via http://www.ottawataxservices.net
By S Kent on Jul 4, 2010
I used a company for this and I received $16,000.
http://www.cbgroup.ca
By David on Jul 15, 2010
RE: A company I have dealt with is the Benefit Agency of Canada and have received $23,000 using their services..Their website is http://www.benefitagency.ca
They charged a small 20 percent contingency fee based on getting me money and no other fee.
By Aaron on Jul 17, 2010
Arron,
They charged 20% on $23,000? What else did you get? Did you get a Life Plan? What is the disability?
You said the same thing back in June and July. Why not use a new name?
By Brian Poncelet, CFP on Jul 20, 2010
S. Kent from http://www.ottawataxservices.net seems someone with integretity to deal with but can your recommend someone local for me to deal with, I am in Windsor, Ontario. I have been unable to work for just over 15 years and never knew about this credit. I have CFS with a secondary diagnosis of depression. I have had to hire people to help me with things I am no longer able to perform with no financial assistance. I had to sell my home because I couldn’t do all the work to maintain it. It has been very difficult at times.
By Anne Marie on Jul 22, 2010
Wow I had no idea about these disability tax credits! This is VERY helpful, thank you!I am trying to get out of debt and this helps a lot, as I get chronic migrane headaches.
Thank you!
By Anne on Aug 25, 2010
Very useful credit just had it done for grandmother long story short dont use the National Beneift Authority $25 up front 30% of all monies receivied. Friend just used HandyTax.ca and said the process was smooth and no up front fee and final fee of 20%.
By mike on Aug 25, 2010
I used the Benefit Agency of Canada http://www.ourhelp.ca for my grandmother and they were very helpful. No Application fee and only 20% contingency fee..
By Svetlana on Aug 26, 2010
I used HandyTax (http://www.handytax.ca) for my mother and father. They were extremely helpful and got me a refund that was much higher than I expected ($24,000).
Thank you HandyTax!
By John on Aug 27, 2010
We put together financial plans that would cost at least $500 to $2500 for families who wish to protect their families, pay less taxes and have more money in retirement.
This plan (a $549 value)is included in our fees which is still lower than other web sites.
So $100 in tax savings is worth thousands over a lifetime. This is not a one time tax benefit.
Always ask for a plan.
http://www.disability-tax-credit.ca/
By Brian Poncelet,CFP on Aug 29, 2010