Services canada website


#1

look on the website today and it said that im eligible to claim DTC from 2015 does this mean I have to reapply as I already applied nov 2017


#2

Does it not have an end date? It means you can go back and claim or transfer the tax credit to a family member for the years 2015,2016 abd 2017 until an end date


#3

no end date just said 2015 - indefinite you can claim DTC for youself


#4

That is great news! I know my spouse received from 2010-2022. So he will have to reapply in 2022.

On second thought–indefinite means you will in their opinion always have the disability.


#5

I’ve been to by doctors that my condition is for life and not just for Christmas lol but im still unsure if I have qualified and what this means I sorry to take up so much of your time


#6

You have been qualified-you will likely receive the letter in a week or two. Not sure if you are married or if you have income that needs the tax reduced from. The tax credit usually results in about 2000 a year back from income tax if you have paid federal tax. If you have not paid that much federal/provincial tax then you can transfer the credit to someone else who provides care and or support for you.

If you are under 49 you should check out RDSP and disability savings bonds.


#7

This is good news (in a way!). It proves you can’t believe all the scary stories you read everywhere on the internet and in the news about how impossible it is to get approved for the disability tax credit.

On your application for the DTC (form T2201), if you answered “yes” to the question “I want the CRA to adjust my returns, if possible” then CRA will automatically reassess your 2015 and 2016 income tax returns. This reassessment will take a couple of weeks and you’ll see the refund deposited in your bank account assuming you don’t owe CRA any debt from previous years. The DTC is a non-refundable tax credit, so you need to have taxable income in order to benefit. Since you’ve been working or on LTD, you will likely benefit. If you didn’t have enough income income in the year to fully benefit from the credit, the credit can be transferred to a supporting individual.

The DTC refund amount you will receive depends on the province you resided in for the tax year. For example, in 2015 if you lived in Alberta, the maximum federal amount you could receive was $1,185 plus the maximum Alberta provincial amount of $1,405 for a total of $2,590. If you lived in BC in 2015, the maximum federal credit you could receive was $1,185 plus $377 BC provincial credit for a total of $1,562. Here’s a link to a website that shows you the value of all tax credits federally and provincially. The link is for 2015, but all other years are also available.

https://www.taxtips.ca/nrcredits/tax-credits-2015-tax.htm

Allyoops has a good suggestion about checking out the Registered Disability Savings Plan offered by most banks and other financial institutions. You should consider this even if you are 50 years old and under 60 years old. You will not receive any grants if you are over 49, however, up to $200,000 can still be deposited into this plan and the income will be tax deferred. You need to start drawing income from the plan around age 60. The benefits of a RDSP for people 50+ are quite complex, so you will need to get some professional advice from a tax accountant (not a RDSP sales person) to see if this is worthwhile.

There are many other benefits of qualifying for the DTC – too many to mention here.

Hope this helps.


#8

this is really useful information i really apprecate all the help


#9

The RDSP is after tax money.


#10

Mine was like that for a years and then it changed to indefinite.


#11

Thanks for raising the point of tax Jammer. We’re getting into a very complicated area. At the risk of confusing others, and myself, I’ll try to clarify what I meant.

All of the income earned by the investments within an RDSP is “tax deferred.” By income, I meant any interest, capital gains/losses and dividends. You will not pay any tax on the income earned within the plan until the money is withdrawn. If you held this money outside an RDSP, you would pay taxes on the interest, capital/gains/losses and dividends every year at the appropriate rate for that type of income.

Jammer – I think what you meant when you said the RDSP is after-tax money is that if you contribute to an RDSP you can’t deduct the contribution from your employment income that year like you can deduct an RRSP contribution. Thanks for emphasizing this important point.

Here’s a link to a high level overview about RDSP’s on the RBC website.

http://www.rbcroyalbank.com/products/rdsp/what-is-rdsp.html


#12

An RDSP for those aged 50 plus only makes sense if you have first maxed out your TFSA, which as of 2018 is 57,500. A TFSA is tax sheltered and no income made on the contributions ever have to be claimed.

After that if you have an additional 200,000 it may be worth looking at.

Those under 49 and have a family income under 92,000 then run to open a RDSP as the government will give up to 3 for every 1 dollar you contribute. IF your family income is under 48,000 then you can get grant money from the government without making any contributions.


#13

That is what I meant.


#14

I’m still none the wiser think I’ll need to see an advisor been in Ontario 10 years and cant
understand the tax system here that’s my fault for must take the time to check things out in the UK they take the tax of at the source made life easier for me but when in Rome /canada


#15

The money you contributed to the RDSP was taxed before you contributed it.
The government contributions and interest/gains on the money in the RDSP will be taxed when you withdraw it.
I think. :slight_smile: