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Disability Tax Credit

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Disability Tax Credit

Postby Deb M on Sun Apr 24, 2011 11:32 am

So we got approved for the Disability Tax Credit in 2007. We receive a montly amount from the gov't and thought that was all we get. It wasn't until our tax preparer asked about the credit this year that our eyes were opened. We have never used the credit on our taxes. I thought the monthly amount was all we got.

What an idiot? The good news is that our tax preparer was able to amend our taxes going back to 2004 to claim the tax credit.

It's funny how Rev Canada never asks why you didn't use the credit against your taxes.

I posted this to make sure that noone else had made this mistake.
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Re: Disability Tax Credit

Postby Aladora on Wed Jan 04, 2012 4:36 pm

I wanted to bump this thread up to add a few things I have just discovered.

There are in fact two different disability benefits that result from the T2201 Disability Tax Credit Certificate.

1. There is the disability amount which reduces the amount of taxes you pay.

2. There is the Child Disability Benefit which is an addition amount that is added to the CCTB.

Both can be reassessed back to the date on the T2201 form that your doctor fills out. In our case, our taxes and CCTB amount are being reassessed all the way back to when DS was born.

When you get the T2201 form filled out and sent in, the government will either approve or not approve it. If it is approved, you need to send in a request to amend your T1 tax return for the appropriate years. When they get this request, they not only look at your taxes but they also send your T2201 information off to Service Canada who then look at the CCTB amount and reassess to see how much, if any, you should have received for the Child Disability Benefit in addition to the CCTB amount.

I got our accountant to file the amended T1 tax returns going back to 2005 when DS was born and we have just received $14,000 back for the CDB alone. CRA is still looking at our taxes for those years and we should receive back approximately the same amount back from our taxes for that same period. :shock:

It did take a bit of back and forth to get all of the forms filled out perfectly and to get our amended T1's done but it was well worth the time! A few hours of my time plus $300 to our accountant for the work she did, definitely worth it!

Here are some links for anyone who might need them!



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Re: Disability Tax Credit

Postby Deb M on Fri Jan 06, 2012 9:16 am

We have to get a new Disability Tax Credit application done for 2012 when our current one expires.

Can a GP sign off on the form or do we need a specialist to do it?
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Re: Disability Tax Credit

Postby tracy on Fri Jan 06, 2012 1:32 pm

Aldora are you saying that the disability you get on your family allowance is diffrent than that lump payemt (sorry my words are all jumbled here) we just got that one- the payment from our taxes - this week - do we then get another :shock: :shock: :shock: and do they do that - or do we have to apply somewhere - I thought that was all taken care of, and think that is what I am reading, but am a bit slow on the intake this afternoon and just want to double check - also are you saying that will also be backpaid from the date that we are paid back from the taxes? Thanks for the info
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Re: Disability Tax Credit

Postby Aladora on Fri Jan 06, 2012 3:42 pm

Susan
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Re: Disability Tax Credit

Postby tracy on Fri Jan 06, 2012 5:43 pm

Wow, Aldora, what alot to process for you! I am not sure what is happening with us regarding the family allowence - we have not heard yet but we did get the taxes back this week and I was just assuming that my family allowance this month would have the disablity on it - had never crossed my mind that there would be a back pay as well for that - I am not going to count my chickens on that side before they hatch though LOL, hope that happens but we will see for us - this has all been a LONG road, and so very frustrating - so we will just keep on trudging along - nice for you and your son though, I am sure it will help allot.
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Re: Disability Tax Credit

Postby Deb M on Sat Jan 07, 2012 9:42 am

Our confirmation letter for tax credit has an expiry
date with a note to re-apply for 2012 tax year.
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Re: Disability Tax Credit

Postby Island-JJ on Sat Jan 07, 2012 11:00 pm

The date the disability began is NOT always the date the child was born for autism.

There is supplimental paperwork that goes into a lot more detail that gets sent to the physician filling out the form and if they put the incorrect date on the first form, they are going to have a lot of trouble filling out the supplimental forms to try to justify it.
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Re: Disability Tax Credit

Postby Aladora on Sun Jan 08, 2012 8:46 am

Susan
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Re: Disability Tax Credit

Postby Island-JJ on Sun Jan 08, 2012 4:38 pm

I am well aware of the current state of autism research and also of the fact that it is most often a congenital disorder which presents over time with delays and often with regression of skills.

But that is not the point of the tax credit. The tax credit is based on the existance of a disability which impacts on the level of care required for the child. Autistic children usually do not require a higher level of care from birth.

The long form paperwork that goes back to the doctor after filling out the initial paperwork goes into a lot of detail about the nature of the disability and the impact of the disability on the care of the child.

For example (this isn't exactly word for word but you get the idea):

With regards to eating, drinking and feeding:

A) The person always requires significant support and takes a much longer time as compared to others their age to accomplish this activity despite appropriate treatments and medications

B) The person usually accomplishes this activity with no extra support or time but in situations of stress or exacerbation of their condition they can require extra support and a longer time to complete the activity as compared to others their age despite appropriate treatments and medications.

C) The person always accomplishes this activity without any additional assistance or extra time.

Since what date has this been the case: ______________

Until what date was this or is this expected to be the case: _____________

Please comment on the nature of the difficulty: ____________________



The forms then go on like that for about 4 or 5 pages listing all sorts of different activities, and for each one, the 3 possible categories to choose from and a date to put when the impairment began.

So, whether a child is born autistic or not, they are not born disabled (as compared to other children their age) as far as CRA is concerned.

Keep in mind that CRA usually approves every piece of paper without even reading it, and then every now and then they spot-check things and actually read the paperwork. It has happened in the past that a few years later, they came back and said "Please justify the claim that it took substantially more time to care for this child than for any other newborn"

In the case of a child who has a g-tube placed at birth for feeding, it is quite easy to justify. In the case of a child who developed normally and then showed a language regression at age 3 as the first sign that anything was wrong (for example), it is more difficult to justify.

The date that they are asking for is not the date that the child first had the condition, it is the date that the condition first became a disability for the child. There is a significant difference between the two dates.

So, yes sometimes you can get away with putting an incorrect date as the date that the disability began and CRA won't challenge it. But, sometimes they will come back later and you'll have to back it up. If that happens, they don't really care whether or not the child was born with autism, what they care about is at what point did the autism qualify as a disability.

If they have a previous assessment from the QA showing that at some time after birth the child was not sufficiently disabled for them to be able to diagnose the child, that supports CRA's argument that the date of disability is not the date of birth.

The same can be said about people who claim their golf club membership as an expense on their tax return. Sure it gets accepted initially but sooner or later they may end up having to justify it (or they may not). If it can't be justified, CRA can easily reverse the previous credits and hand you a nice big bill.
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Re: Disability Tax Credit

Postby Island-JJ on Sun Jan 08, 2012 4:41 pm

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Re: Disability Tax Credit

Postby TazDevil on Sun Jan 08, 2012 6:02 pm

Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.

Steve Jobs
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Re: Disability Tax Credit

Postby TazDevil on Sun Jan 08, 2012 6:10 pm

Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.

Steve Jobs
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Re: Disability Tax Credit

Postby Aladora on Sun Jan 08, 2012 6:23 pm

Susan
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Re: Disability Tax Credit

Postby Aladora on Sun Jan 08, 2012 6:46 pm

Susan
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