Here is my journey that i’m sharing for those that have been approved for the DTC and wondering what they can seek out next…
My story-
So, after a long period of waiting and refreshing the CRA website, I have been approved for the Disability Tax Credit. I don’t really know where to go from here. I was approved from 2015 to 2023…Can anyone help me with the next steps or guidance on how to proceed a with my back taxes? Revise previous year’s taxes?
Thanks in advance!
What I found out-
After you have been approved for the DTC, you get an opportunity to reassess your taxes backdated to the start of your disability(as specified by your doctor) or going back 10 years. There is a option to have the CRA do this automatically once you have been approved or have it done yourself. This takes some time since it can be complex and span a large number of years. Give this at least 4 weeks and an average of 6 to 8 weeks… though, depending on time of year, this may even take longer. If you worked for any of those years you should get approximately $1000 to $2500 back. This isn’t set in stone and ranges substantially depending on your situation in that specific year. I use Simple Tax (https://simpletax.ca/) for the ease of use to try to guess ahead to estimate what I can possibly get back.
Do they do this automatically? Is there a way I can go through my previous years taxes myself in the meantime to estimate what changes will occur or if I should give the tax credit to another family member? Forms I can inquire about?
I live in Vancouver and on CPPD it’s hard enough to get through with the day to day on the disability amount. Maybe one day I’ll be able to put something away to an RDSP - no way I can now. I’m in my 30s so I still have some time.
One thing that I’m really looking forward to is looking into some schooling and applying for some grants - also iffy in this area since I declared bankruptcy - I think you can’t apply for a student loan with bad credit? Any one ventured down this path?
They did for me 8 years ago but I don’t know if they do anymore.
I would phone CRA.
I do my own taxes with software.
If you do also, just check the disability claim button for each year.
I think all it does is increase the personal exemption.
I don’t think you xan give it to any family member, there are quite a few restrictions, must provide daily care (not just take you grocery shopping).
The government will GIVE you money.
You don’t need to contribute.
It is not much but it would compound.
Also, other people could put money in and the government matches it (sometimes 3x).
With the goal of getting a diploma?
I think older people can “audit” courses for free.
I would talk to the university or college you want to go to.
Sebbe - I just received my CRA Disability Tax Credit this year. They audited from 2012-2017. They will continue to allow the Disability Tax Credit for a further 5 years (2022) and will reassess at that time. You aren’t to do anything - they will reassess them without prompting from you. If they owe you anything and you have Direct Deposit - they’ll deposit any funds owed into your bank account. If you owe they will notify you. It would be good to set up (if you haven’t already) a “My Account” on the CRA website so that you know when there’s any messages regarding this - plus you can view your past returns. I owed CRA quite a bit of money when I got sick - after they re-assessed my taxes the amount I owed was reduced quite a bit. 2017 was the first year I got to use the CRA Disability amount and for the first time I was to receive a return - but CRA takes that amount to further reduce my debt. I then paid off the remaining amount owing. 2018 will be my first year with the CRA Disability Credit where I don’t owe any back taxes (yay!). If you think that you have any tax credits you want to shift to someone else I would WAIT until CRA has completed your reassessments. This process can take about 3 months. Did you receive a formal letter from CRA letting you know that you have been approved? On that letter it will also have your Disability Credit Number. Make sure you keep this Letter in a safe place as you will need it for future Tax Returns. I hope that helps you!
My CRA account is now showing that they are reviewing my past years taxes.
I went into Simple Tax and drafted up my taxes from the years I’ve been back dated till(2015). I am expecting about $1,500 in back pay for 2015, 2016. Sweet! It was pretty easy on Simple Tax… literally a click of a button. I was a bit surprised that on my 2017 taxes there is no change in refund.
Would it be expected that going forward if I do not have a job that I will not be receiving any refunds back?
I have an RDSP.
Google “RDSP”.
You’ll get a statement every year from the government (until you turn 50).
I think the first $500 you contribute gets 3x matched by the gov.
Then 2x match the next $1000.
Those are bonds.
Then the gov contributes a grant of up to $1000 depending on your income.
Other people you specify can contribute for you.
Doesn’t going to school imply you can work?
I know it is different.
I would research doing that.
I’m researching the RDSP and one would be a fool to not pursue this benefit.
From my research the best option available at present is the TD E-Series which allows you to have the option of a self directed RDSP investment account. I am currently with RBC but I’ve heard of a few horror stories with RDSP accounts through them and to just open a TD E-Series RDSP account right off the bat. This is what I will be going for.
As far as education goes, once you are approved for the DTC the door opens up to some funding from the Federal Government. I’m fresh in this department, but I’m going to pursue this. otherwise… why would they provide this option then?
The feds really don’t make this easy. Lots of learning and lots of patience.
People have the DTC who work but do NOT have CPP-D.
One is the CRA and one is Service Canada and they have separate qualifications.
Investigate it, I think you’re allowed to work while on CPP-D (just not full time) so maybe going to school part time is an option.
I have RDSP with TD. No complaints. The government puts $1000 bond each year into it for having low income. Also if you put money yourself they are going to match it
As for education, be careful. Check with Service Canada if you can study. They may think you can work and take away your CPP-D.
I had 12-years of disability, so the CRA adjusted my T1s for a full 10-years. Because I hadn’t worked some of those years, and had no income to adjust with the credit, I invoked the rule that allows you to transfer all or part of that credit to your spouse. Her T1s were adjusted and we’re currently waiting for the on the refund for that.
Note: the CRA will not adjust your spouse’s T1s! I had my accountant do it. For a fee, of course.
Normally I’d not bring back a forum post from such a while back, but there is a lot of great information in this one…
Elaine, Thank you for the response- It had slipped through as real life took priority on anything internet.
And on that note, I ended up not pursuing any of the RDSP/ schooling my self since so much has been happening(Grandmother on Mom’s side passed away, my mom not taking it so well, my father suffering a heart attack, myself dealing with a number of health concerns). From what you say in your message… really I need to hurry up and apply for that RDSP otherwise I am really just missing out here. Welp, just like this thread, the RDSP is bumped up my list of to-dos/get -dones .
That last point with the school- I would love to get back to a meaning full, fulfilling job/ career- but I have noticed huge changes in my cognitive function… It would be hard to near impossible to get back into a job role without pursuing education. Especially with the exponential rate technology is going at(Movie night? Oh, ok, where are the cassettes and VCR? You “stream” your movies from “the cloud”? But, you live in a condo downtown…there is no stream in sight. Maybe they shouldn’t have decriminalized Mary J! )
1st…DTC is “DISABILITY TAX CREDIT” to be used on your tax return to reduce taxes payable. It does not provide any type of benefits, educational, or financial.
If you’re referring to CPP-D “CANADA PENSION PLAN - DISABILITY” income than yes, they provide educational for retraining purposes. They do this to help you get back to work and then the Disability income from CPP stops!
That’s the purpose.
So, after your education program is completed you will not receive this income any more.
