Disability Related Tax Relief and Learning Disabilities
The Income Tax Act contains several special tax relieving provisions for persons with disabilities and their caregivers. The intent of the special provisions is to alleviate the additional costs borne by individuals with a disability and their caregivers. Unfortunately, many eligible individuals are not aware that such relief exists. It has been estimated that less than 20% of the disabled population is aware of such income tax relief. The result is that thousands of dollars of available disability tax relief are not claimed by eligible taxpayers each year.
Disability Tax Credit
The disability tax credit is available to individuals with a severe and prolonged mental or physical impairment, the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted. A basic activity of daily living includes perceiving, thinking or remembering. An impairment is considered to be prolonged where it has lasted or can reasonably be expected to last for a continuous period of at least twelve months. The individual must require an inordinate amount of time to perceive, think or remember substantially all of the time.
For details on the disability amount, visit Canada Revenue Agency web site at www.cra.gc.ca/disability, or see Guide RC4064, Medical and Disability-Related information. If a child under 18 years of age is eligible for the disability amount, that child is also eligible for the Child Disability Benefit, an amount available under the Canada Child Tax Benefit. For details, visit www.cra.gc.ca/benefits or see Pamphlet T4114, Canada Child Benefits
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