This credit, which is available to anyone with a disability, is designed to help cover added expenses. It is a non-refundable tax credit that taxpayers with disabilities can use to reduce the amount of income tax they have to pay.
People who have a severe mental or physical impairment, which impacts the basic activities of daily living and/or need and dedicate time for Life Sustaining Therapy are eligible. The impairment has to have lasted for at least 12 continuous months and, if you have had a disability for some time, your tax returns can be reassessed as far back as 10 years.
In order to be eligible, a medical professional has to fill out and sign the Disability Tax Credit Certificate, which then has to be approved by the CRA.
If you have no taxable income or don’t need the full credit, you can transfer all or part of it to your spouse or common-law partner.