I'm hoping someone can point me in the right direction here. My son was diagnosed this past summer, our hospital clinic has said he is eligible for a disability tax credit and they will sign the appropriate forms.
I'm working on taxes and it's not entirely clear to me how to claim this. Do I have to file a return for my son, so that I can transfer his disability tax credit to my return?
Any help from anyone that has done this would be great
Here's a link:
Hope that helps :)
PS. This link has all the info - forms, etc..
First, you need to fill out the form and get your dr to sign it and mail it into the tax center. Then, you wait for them to approve it and send you a letter saying your son has been approved. This can take time, so if you haven't done so already, you really need to do that first. The unfortunate side is that it is also tax time and it can be some time before Revenue Canada gets back to you. So, in the meantime, you may just have to file without it and then when they approve it, submit a form to request that they reaudit your claim with the tax credit. It is definitely worth it. I'm not sure how it works when you have a dependant with it, but I think as a legal guardian, you just claim it on yours as you would his medical expenses, sports expenses, etc. If you need help in what to say, send me an email or pm me your email and I will send you a copy of mine as I had help filling it out and it is the best job I have seen and I dont think that they would be able to give you the run around as they sometimes do. My email is firstname.lastname@example.org if you would like to see it.
You are best to file a separete Disability Tax credit form at this point or it will tie up any refund you may have for the 2011 year when you file taxes soon.
The form can be downloaded at the Goverment of Canada website. It is the T220 Disability TAx Credit form. It takes 6 weeks to get a decision and then another few weeks to ask for a tax adjustment on behalf of one of his parents. The amount is about $1,400 per year per child. It is retroactive so you can apply for the year of 2011 when your son was diagnosed.
The form is quite a few pages and the process is a bit long so make sure you get your done soon and in my opinion (as told by the agent last year from the Canadian Goverment), I would file your taxes first and then apply for the Disability tax benefit so not to tie up any refund. If you are not getting any refund, then I don't think it matters when you apply.
Here is the link:
Thanks everyone, I didn't realize I had to submit the certificate form first - will be getting that signed next week....
Alan - DTC? What if you are not employed?
DTC= Disability Tax Credit.
Ironically, I applied for the T-220 for myself as I have been Type 1 since 2003. I got back retroactive to 2004 when the credit came into play. However, I had to have my doctor fill out further forms but my son was approved right away.
If nether parent is employed and not paying taxes then I don't think you get back any money. If one parent is employed, then once your child is approved, you have to send a signed letter stating that you wish to transfer the tax credit to your spouses 2011 tax return. The government will redo your spouse's income tax to include the T-220 tax credit and your spouse will get a refund (I believe it is up to $1,400).
I am currently not working so we transferred that tax to my husband and he received the refund.
Thank you - I was unaware of the credit and have been T1D since 1998, I guess Revenue Canada isn't exactly going to show up on the ol' door step and offer money, so...I contacted the NBA and found out they can go back for up 10 years, and (potentially) get me a lump sum credit (they take 30% if I get it); then going forward can apply annually through the gov't.
Thanks for all the info - big help :)
30% is a lot... I would attempt to do it yourself first and it could save you a substantial amount. You end up doing most of the work yourself anyhow and they just file the papers and take your money. There is a form that you fill out that basically says you are submitting and adendum to your previous years taxes to include the DTC. I am surprised at how many people I run into even now that have no idea about it. But you're right, they're not going to chase you down to tell you about it. I'm on a pump, and a lady I work with has a son that is also on a pump and they knew nothing about it. Another thing to also note is that if you qualify and are approved, you can set up a Disability Savings Plan and the government may contribute a substantial amount of money to that as well. The key is that you need to stop contributing and then wait 10 yrs after your last contribution before you can take money out. But I have so far contributed 6000.00 to mine and with government funding and grants, etc, it is 20,000.00. (I qualify for the maximum amount based on my income).
But step 1 is to get the T2201 form (download it online) and fill it out and get your dr to sign it. I offered above to help with what to say, and I will offer that to you as well. If you would like to see what mine looks like and then just adjust it to fit your situation, you are more than welcome to send me an email at email@example.com and I would be more than willing. Then you mail that into your tax center after your dr signs it and then the waiting begins.
Once you are approved, then you move on to having them re-evaluate your taxes going back the 10 yrs, but first you need to get that approval.
I do not have an accountant and only found out about it all by replying to the initialy post :P
I do our taxes online...I would not have believed any of it if not for you fine folks!
I have an accountant and the loser knew nothing about this. It was my son's diabetic educator who is also a Type 1 who informed me when my son was diagnosed.
Still wondering why different people get back different amounts. According to the government, and I spoke to many people, it is a standard amount you get back. The formula is 15% x 7,300 (the amount of the tax credit) which equals about $1,095 multiplied by the amount of years you are applying for retroactively = $6,570.
If anyone knows how the amounts can differ please let me know.
The agent told me to complete a "Schedule 1" which you can download and that will give you your total.
Since all TYpe 1 diabetics are only eligible from 2005 and forward, how come the amounts differ.
ANy info is appreciated :-)
BJ - thank you, you are most generous.
I did not realize that I could do it myself (or I would never have contacted NBA), so I will be downloading the forms immediately...and I have taken note of your email addy and will definitely be in touch should I need.
You are right, I only found out about the T220 when my son was diagnosed in November 2010 so I applied for retroactive payment. Please not they may go back 10 years BUT the T-200 DTC only became available to diabetics as of 2005.
So you will most likely get back around $6,000 for yourself and $1,400 for you son as kids get a larger refund. Since you are asking to go back retroactive, this is most likely why they required me to fill out additional forms. However, the money is a great surprise!!!
Just wanted to know who is the NBA? I applied directly to the goverment myself and NO FEES of 30% were taken off.
If you need more info, just keep posting and I will reply.