Tax breaks greatly assist persons with disabilities
(NC) – Enjoying life to the fullest witha disability, or caring for someone with a disability, can impact your work hours and it can also lead to extra expenses and financial stress.There are, however, tax programs and credits available to help ease the financial burden.
The disability amount, for instance, helps reduce the taxes owed by a person with a disability. The amount can also be transferred to a spouse, common-law partner, or supporting family member. To determine if you may be eligible for the disability tax credit (DTC), you must complete part A of the Form T2201, Disability Tax Credit Certificate, and then have part B of the form completed and certified by a qualified practitioner (medical doctor, optometrist, audiologist, etc.) The forms are available from the Canada Revenue Agency (CRA). Once approved by the CRA, you may claim the disability amount on your income tax and benefit return. Depending on your circumstances, you may even be eligible to claim the disability amount retroactively.
Those caring for a child under 18 with a disability may also be able to benefit from the child disability benefit (CDB). Once the CRA receives a certified original Form T2201, the CRA will advise you if the child is eligible for the DTC and the CDB supplement. You can find forms and detailed instructions at www.cra.gc.ca/disability. In addition, the Government of Canada recently introduced the family caregiver tax credit. With this credit, you may be eligible for an additional amount of $2,040 in calculating certain non-refundable tax credits for individuals who are dependent on you because of an impairment in mental or physical functions. If you are supporting more than one person with an impairment you can claim the family caregiver tax credit for each eligible dependant.
As a caregiver, you may be faced with many challenging tasks, including managing additional expenses – don't miss out on these opportunities to reduce your taxes and put some money back into your pocket.
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