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[Disability May Qualify for Tax Relief]

For Canadians living with disabilities, there are a number of tax breaks designed to compensate for the extra expenses incurred.

What does 'disabled' mean?

A disability is a severe impairment which makes it extremely difficult or time-consuming for you to carry out basic activities of daily living even if you are undergoing therapy and using appropriate devices and medications.

The impairment must last or be expected to last 12 months and severely restrict your ability to see, walk, speak, hear or perform personal care activities or seriously affect your mental capacity to manage your personal affairs.

The definition has been expanded as to allow for the cumulative effect of multiple impairments that individually would not be severe enough to qualify. For example, a taxpayer with multiple sclerosis who constantly experiences fatigue, depressed mood and balance problems will probably now qualify.

Additional modifications also make it easier for sufferers of Type 1 juvenile diabetes to claim the disability credit. The government has added the monitoring of blood sugar levels and dosage requirements to the types of activities that constitute therapy. As a result, more diabetics should now qualify.

But before you start adding up your expenses, you must first file Form T2201 - the Disability Tax Credit Certificate - with your return. The form has to be completed by a doctor, optometrist, audiologist, occupational therapist, psychologist, physiotherapist or speech language pathologist and is used by the CRA to determine if your disability meets the prescribed requirements.

What credits are available?

  • For 2007, the basic federal disability claim is $6,890, which translates into a federal tax credit of $1,033.50. The provincial tax savings vary depending on where you are living. If you don't use the entire credit, you may be able to transfer it to someone else such as a spouse or parent.
  • For disabled children under 18, there is also a $4,019 supplement, which will increase the maximum federal claim to $10,909. However, this amount is reduced by child care expenses and attendant care expenses in excess of $2,354 that were claimed for the child.
  • Disabled children can also qualify for the new $500 Children's Fitness Credit including an additional $500 tax credit for any additional equipment that needs to be purchased to participate in an activity.
  • Caregivers can claim the caregiver amount depending on the income of the dependant. You should check the caregiver guidelines to see if you qualify.

 

[Maybe You Don't Have to Wait for the Mail]

A recent survey by H&R Block showed that 30 percent of Canadians would file their taxes sooner if they did not have to wait for their slips. You could greet your mail carrier everyday looking for your tax slips but there are some other options.

Retrieving your tax slips could be at your fingertips. Some information slips are available via the internet. All you need to know is where to find them and have access to view and print them. For example:

  • Some employers offer on-line access to T4 employment slips
  • Most Universities and Colleges offer on-line access to student's tuition receipts.
  • Service Canada allows access to your information slips for Canada Pension Plan (CPP) Benefits, Old Age Security (OAS) Benefits, and Employment Insurance (EI) Benefits.

You will need to have specific codes before you are able to access your information. This will consist of either a Personal Access Code (PAC) for CPP and OAS slips or your EI Access code. Ask your employer or school administrator about finding your information on-line.

The Canada Revenue Agency (CRA) provides an on-line feature called 'My Account'. My Account includes information about:

  • tax refund or balance owing;
  • direct deposit;
  • RRSP, Home Buyers' Plan, and Lifelong Learning Plan;
  • tax returns and carryover amounts;
  • disability tax credit; and
  • many more important tax details

You can also manage your personal income tax and benefit account online by:

  • changing your return;
  • changing your address or telephone numbers;
  • applying for child benefits;
  • arranging your direct deposit;
  • authorizing your representative;
  • setting up a payment plan; and
  • formally disputing your assessment or determination.