Disability tax credit question


#1

Greetings,

I was recently made aware of the DTC. I have been receiving compensation from the workman’s compensation (Quebec} and will continue to receive it until retirement. My taxes are adjusted and I don’t have to pay any income taxes or receive a refund. I was recently approved for the DTC (2005-2022)and the only way I can benefit would be to transfer the credit to my brother who lives across the street from me and helps out with food and clothing. what is the process for him to receive a refund. He has been at the same job for the last14 years and pays about 2k in federal taxes. I’m estimating $300 per year as a refund, for the last 10 years, am I correct? What is the procedure to follow?

Thanks for your help.


#2

Your brother needs to have his income taxes adjusted. He will get aprox 1500 federal for each year and a smaller provincial portion back. Only if he pays that amount will he get that back.
He claims the disability tax credit as being transferred from you.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-318-disability-amount-transferred-a-dependant.html


#3

Thanks for the reply. My brother’s yearly income taxes (average 2k a year) are deducted automatically off of his pay check by his employer. Are you sure about the figure you mentioned? $1500 a year approximately? Will he get 15 k back? We live in Quebec, how will he get a portion of that back? Isn’t the DTC a federal credit ?

Thanks again for the help.


#4

Read this:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-318-disability-amount-transferred-a-dependant.html

I think you or your brother should phone the CRA.


#5

Thanks for the link. I have seen and read the info related to that link. Up till now, I have thought that my knowledge of the English language was adequate. It turns out that Tax English is a language mainly spoken by accountants and tax lawyers. We will call in to the CRA.

Thanks again.