Disability Tax Credit (DTC)

by Sahil Patel | Feb 27, 2023

About DTC

The Disability Tax Credit (DTC) is a non-refundable tax credit that helps those with a disability or their family reduce the amount of income tax paid.

The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability related costs, as these are unavoidable additional expenses that other taxpayers do not pay.

Eligbility

An individual may be eligible for the DTC if they have a diagnosis or impairment in physical or mental functions are severe, prolonged and result in a marked restriction. A marked restriction means that even with the support of therapy, devices, and medication the individual is unable to or spends an inordinate amount of time to perform activities in one of the following categories outlined by the DTC:

Vision
Speaking
Hearing
Walking
Eliminating (bowel and bladder functions)
Feeding
Dressing
Mental functions necessary for everyday life
Cumulative effect of significant limitations
Life-sustaining therapy

The impairment must be prolonged, which means the impairment has lasted, or is expected to last for a continuous period of at least 12 months as well as be present all or substantially all the time (at least 90% of the time).

To learn more about eligibility take the self-assessment questionnaire here and/or visit the Government of Canada’s page on eligibility for the Disability Tax Credit here.

How to Apply

To apply for the DTC, you must complete the T2201 form. The form is divided into two parts. Part A should be completed by the person with a disability (or legal representative) and Part B needs to be completed by a medical practitioner.

Medical practitioners who can certify the impairments include:

Medical Doctor (all impairments)
Nurse Practitioner (all impairments)
Optometrist (vision)
Audiologist (hearing)
Occupational Therapist (walking, feeding, dressing)
Physiotherapist (walking)
Psychologist (mental functions necessary for everyday life)
Speech-Language Pathologist (speaking)

Steps to Complete

Step 1: Determine if you would like to complete the form online, or by downloading a PDF. This form can be completed online by visiting here, or by downloading a PDF by clicking the button to the right, “Blank T2201 Form”.

Step 2: Complete “Part A” and have your medical practitioner complete “Part B”

Step 3: Submit electronically through your CRA “My Account“, or by mailing to your nearest tax centre. Peel’s nearest tax centre is in Sudbury; you can send your documents to:

Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON
P3A 5C1

After Applying

After the Canada Revenue Agency (CRA) receives your Form T2201, the CRA will assess your application to determine eligibility. Upon determining eligibility, the CRA will provide you with notice of their decision.

To learn more about what to do once your application is approved, or what to do if your application is denied, please visit their page on their step-by-step process following submission here.