Is there some other tax break BESIDE DTC?


#1

I have the PWD and have been receiving disability benefits since the beginning of the year. My dad said he wants my approval letter so he can claim it on his taxes for the years I lived with him. From my understanding the ministry services and CRA are separate and my disability benefits have nothing to do with tax benefits?

I asked him what ‘tax break’ he’s trying to get and he said he didn’t know. His accountant is the one telling him to do this. Also if there another tax break? I looked into it and I can only find information on the DTC which says I can transfer a partial or full amount IF I qualify. If I qualify I don’t feel like I should be transferring the amount over to him. He wants the tax benefits as he says he ‘supported me’. Other than giving me a place to live I paid for everything. My own food, clothing, toiletries, car insurance, gas, medical expenses. Also I inherited my disability from him.


#4

That is IF I even qualify and they can only go back so far. But yes I would actually need it since my condition is worsening and I’ve had to cut back my hours at work. I now have limited function of my dominate arm and my job involves me constantly using it. I’m having to do a whole reworking of everything in my life right now… This whole thing is giving me anxiety and he knew well enough that it would. I could transfer a partial amount or whatever I’m unable to claim but no… he wants it all. And no he didn’t raise me. What does that even have to do with this? I lived with him for a period of time and he wants to claim taxes for that period. He didn’t pay for anything for me. In fact he benefited by having someone help out with cleaning and taking care of his dog when he went away. Anything he did pay for, like a car repair, I paid back. It’s not like I wasn’t working when I was living with him. I paid for myself. Even when it was very hard. He wouldn’t even help me out when a tooth got badly infected and I didn’t have enough money to pay the dental costs. I had to go to my mom.

The issues is that my dad is severely in debt because of his own poor financial choices and is trying to use me as a tax break. He’s also talking about buying a $30,000 motorcycle. 30.frigging.grand. While he’s in debt. He’s never neglected buying himself whatever he wants. My mom says what he’s trying to do is disgusting. I’m not in a wheelchair. I don’t need to be bathed or fed or dressed… He’s never taken care of me. My mom was the only one that ever did that. When I was a child… When I lived with him I paid for anything and everything to do with my condition. He doesn’t get to claim anything. And what if he gets audited? What then? Also I never even used his address as my own so I don’t believe he can even say that I lived with him.


#5

How is that a ‘good one’? It’s the truth… In FACT I have a more progressive form of his condition. It’s worse. So thanks dad! Please be helpful and answer my question properly or don’t bother responding.


#7

So far I only know about DTC. But you can call CRA and see what they say.

DTC is good if you have income that is taxable. Also if you have DTC you can open RDSP account and the government will match any contributions you make.


#8

Thanks.
What counts as taxable income? Does your income need to be over a certain amount?


#9

Yeah I never asked to be born into this world with the issues I have due to my genetics. Also it’s actually disabilities. I got multiple things from him.


#10

Around $15,000 a year or a little more is not taxable. It is taxable on your paycheck but when you submit your tax return CRA gives those taxes back. If CRA actually keeps your taxes then it is beneficial to have DTC as you can save at least $1,500 in taxes a year.


#12

Hi Anu001 - I’m sorry that you have been suffering with an inherited condition and that your father hasn’t been terribly helpful (to put it mildly). This must be very painful for you in so many ways.

You are absolutely correct that your provincial income assistance, PWD, and the Canada Revenue Agency are really quite separate. Your PWD designation and payments just started in 2018. This PWD is not a CRA designation and is NOT retroactive to any period where you happened to live under the same roof with your father.

If you decide to apply for the Disability Tax Credit at some future point, this non-refundable tax credit can be approved retroactively for up to 10 years. You are not obligated to inform your father about your approval for the DTC. You are an adult. Your father is NOT entitled to know anything about your financial affairs. For your father to use any part of your DTC for a previous year, YOU would have to agree you were dependent on him and YOU would need to sign a form allowing him to use any part of the DTC you couldn’t use for the purpose of receiving an income tax refund for a previous year. You see - It’s all in your hands… except that you must apply for the DTC and you need to be approved. As Elaine said, there are lots of incredible benefits TO YOU of being approved for the DTC (grants, bond).

The “taxable income” level depends quite a bit on the province where you live and the amount of income, type of income, deductions and tax credits you may have. I’m not sure which provinces use the Persons With Disabilities designation, PWD, designation outside of British Columbia. If your only income is PWD income, basically income assistance, you are in a very low income bracket and won’t be at a taxable income level. Since you know quite a bit about PWD and CRA, you are already well informed or have received good advice from your case worker or another professional.

Be confident and please focus on your wellness and not on bad vibes from family members or anyone else. If you are in BC, Disability Alliance BC (a non-profit organization) may be able to help you with your Income Tax this year. They have some excellent website information on lots of topics, including the Disability Tax Credit. If you live in BC, Disability Alliance BC will work with you, at no charge, to prepare your DTC application and some information to help your doctor complete the form.

Best wishes to you.


#13

I think you may need to see a professional. Good luck.


#14

Thank you Joanne. I’ll talk to my dad. I think he needs to inform his accountant that PWD has nothing to do with the CRA since she was the one who told him he could get a tax credit for me living with him. She’s got him all riled up over the benefits she says that he could get and he feels entitled to them. My parents talked about this and my mom pointed out to him how he hasn’t taken care of me and only gave me a place to crash for a little bit. I could have easily stayed with her instead. He still felt like he’s entitled. I went there after being laid off and when I got a job I offered plenty of time to give him money for rent. He said “No save your money. You need it”. That was money I was saving to move out. Now he’s saying that I owe him. The debt he’s in is due to the costs of building a home and a bunch of ridiculously expensive renovations and addons (like a kitchen made entirely out the rarest and most expensive type of maple, a deck that’s almost the size of a 2 bedroom house and a stone walkway). Right now he’s panicking and looking for any angle to relieve some of his financial strain but I don’t see how it’s my problem.

I’ve had a steady job for a while but I don’t think I’ve had enough of an income to qualify. I read that if I don’t have a taxable income I can transfer the credit over to a supporting person or ‘caregiver’. However he was never my caregiver. And quite frankly I don’t think I would even approve this with the way he’s been going about everything.

I’ve emailed with someone from the DA before and was requested to go into their office to work with them in person. However I am not near Vancouver so was unable to do so.


#15

Ya a lawyer takes half …I’d go about it yourself or help from some1 who been there.If need be call lawyer for advice 50 hr 15 mins…Good price If you receive the DTC you will get a lot of bonuses .I did one and now I only pay tax on cpp-d not my Ltd Hence I qualified for nothing…I paid lots when I was working …Lump sums are nice but spend wisely…


#16

Your Dad needs a job Yes there is a tax credit for caretakers but for letting you crash there? I’m sure if he words it right with paper work he possibly would receive itIm sure you might have to consent Not 100%sure Ok…G…L


#17

Thanks. I definitely wouldn’t hire a lawyer. Wouldn’t be worth it.

My dad has his own company. He just isn’t working that much. Hasn’t been for the past few years. He might put in 2-3 days a week when he used to work every day. He’s losing clients because he’s taking too long to finish jobs. He spends about 4 days out of the week with his girlfriend. My mom, who still does his bookkeeping, said he’s making about half as much as he used to. Despite this he’s still adding onto his house and buying stuff he doesn’t need. He just takes out loans all the time. His took out his RRSP so that’s gone. He thinks once he sells his house that will solve everything.


#18

I received a letter today from CRA. They will be contacting my medical practitioner for more info.


#19

The CRA DTC (Disability Tax Credit) is a credit on your income tax to reduce the amount of payable taxes. It’s a nice credit.
You need to apply and be approved for this credit.
Once approved, it is possible for CRA go reassess your tax returns back as far as 10 years.
During those years, if you did not have any taxes payable, then the credit can be transferred to certain family members. To qualify for this transfer that family member must have assisted you as a dependant.
CRA considers a person (you) to be a dependant if you need their support regularly and consistently for the BASIC NECESSITIES OF LIFE. In other words, you could not meet your own basic needs without this support.
The Basic Necessities include … Food; Clothing; and Shelter.
Some examples include: Buying clothes (but not cleaning it); Paying for food for the dependant (but not just selecting the groceries).
Giving gifts of food or clothing on special occasions, visiting each day and providing moral support; making and transporting the dependent to medical appointments, are NOT considered the necessities of life.

This DTC is very beneficial to people who annually pay taxes to CRA. If some years you have not paid income tax, you can transfer the credit to someone else but they have to prove how they supported you. You do not have to transfer the credit if you choose not to.

If you’re not sure how to apply for this you can get assistance from businesses such as NBA (National Benefit Authority) who provide this service. You don’t pay up front but any money they are responsibile for getting you the tax credit, you have to pay them 30%. This is a huge chunk but they’ve certainly assisted me. I would have given up the process long ago if it hadn’t been for their guidance throughout.

Don’t assume your disability will not qualify. Your disability can be something that doesn’t necessarily incapacitate you but it does affect your activites daily.


#20

I want to add that even if you don’t work, getting the DTC allows you to open an RDSP and get free grants from the government.


#21

Ya and lose half your money when they win there are cheaper ways, but this. Company has a lot of experiace


#22

I informed my dad that PWD and DTC have nothing to do with each other and he dropped it for a bit until he brought it up the other day. Saying he has forms for me to take to my doctor. His accountant is really pushing this. I told him that he would have to prove he’s been my caretaker (which he hasn’t) while I was living with him and that it’s my choice if I want to sign over the credit to him. He got pretty choked about that. I asked him what he would do if he received a refund and he said “That’s up to me because it would be my money for you living with me”. I told “But it’s for my disabilities which isn’t fair plus it’s not like you paid for my food, clothing, toiletries or medical expenses”. Then he went off about how expensive it is to run a house and all of the costs that go into it… Which are costs he would have had regardless of me living there or not. He mentioned paying a few hundred a month in hydro. Well I am not an energy waster so I doubt my hydro consumption cost him more than $30 -$50 a month. That is roughly what my friends pay for hydro and I know they use quite a bit more than I do. My dad’s hydro bills are high because he has an office in which he runs multiple devices almost constantly. He also never turns the TV off (I don’t even watch TV). Just leaves it on the screensaver mode. He shower every days. I don’t (better for the hair). I also spent a lot of time away from home. Often gone for a few days and sometimes weeks at a time. So the majority of the hydro bills were because of his consumption.

Anyway I informed him that IF I got the DTC I would only do it that in the event of a refund I would receive money from it. I told him that’s only fair. He agreed to do that. At least give me a part of it.


#23

I saw my psychologist today and she again said CRA does not want me to know what she wrote in her detailed report to them for the DTC. We shall see what happens next. I am not sure if I really care what CRA thinks.


#24

I understand how you feel.
For me, it was “tell anybody anything you need to, just get it done so I don’t have to deal with it”.