"You are entitled to claim the disability tax credit"

[jithucan123]

Hi,

I have applied for the Disability Tax Credit for my son. I got an update in my Account which says:

"You are not entitled to claim the disability tax credit for XXXX." 2015
"You are entitled to claim the disability tax credit for XXXX" 2016-2024

What does it means? Are we approved for the Disability Tax Credit? If so then what would be the next process?



Thanks

 

[Wonderland_1010]

Hi,

I have applied for the Disability Tax Credit for my son. I got an update in my Account which says:

"You are not entitled to claim the disability tax credit for XXXX." 2015
"You are entitled to claim the disability tax credit for XXXX" 2016-2024

What does it means? Are we approved for the Disability Tax Credit? If so then what would be the next process?



Thanks

Yes you have been approved for disability tax credit. You can file a T1 adjustment for 2016 and 2017 if you haven't filed yet. But only for 2015 you can't claim the disability tax credit.

Your son disability tax credit is approved for 8 years so 2016 to 2024 and you will have to apply for it again once is expires.

 

[jithucan123]

Yes you have been approved for disability tax credit. You can file a T1 adjustment for 2016 and 2017 if you haven't filed yet. But only for 2015 you can't claim the disability tax credit.

Your son disability tax credit is approved for 8 years so 2016 to 2024 and you will have to apply for it again once is expires.

Thanks a lot for your reply. So is it like CRA will be paying for my son as Disability Tax Credit ? My apologies, I don't have much idea about this.

 

[Wonderland_1010]

Thanks a lot for your reply. So is it like CRA will be paying for my son as Disability Tax Credit ? My apologies, I don't have much idea about this.

No, Disability Tax Credit is a non refundable credit which only is used to help reduce the taxes you pay.

 

[jithucan123]

No, Disability Tax Credit is a non refundable credit which only is used to help reduce the taxes you pay.

Thank You

 

[fkl]

Thank You

To be clear, if you had filed regular taxes in 2016 and paid taxes on X income and lets call the amount you paid in taxes as Y.

Now since you got disability tax approved for 2016 onwards, you can file for tax adjustment for the year 2016.

They would deduct the disability credit from your taxable income (roughly that amount is 20K ish + though it varies based upon your income and many other factors).

So you will pay tax on X-20ishK +. Now obviously this amount would be much less than the Y you already paid. You would get refund of the difference from CRA.

For a ball park estimate, for some one who say earns between 50 and 80K per annum (and ignoring the difference across provinces), you are likely to get anywhere between 3-6K CAD refund. Please note that this is a very rough estimate and it changes significantly depending upon other factors. But this is roughly the net amount you should expect to get back from CRA. 6K is probably on the higher side and likely would also include some additional tax credit that you become eligible because of qualifying disability already.

Hope that helps

 

[hwr44ever]

Salam/Hi,
My wife doctor recommeded my wife to apply for disability tax credit. I landed in October 2018. And yet to file tax return. What benefots will i get from it?
I started a job on 19th Dec 2018.

 

[canuck78]

Salam/Hi,
My wife doctor recommeded my wife to apply for disability tax credit. I landed in October 2018. And yet to file tax return. What benefots will i get from it?
I started a job on 19th Dec 2018.

If your wife qualified to immigrate with you she may not qualify. CRA has become pretty strict about who is eligible since tons of people applied.