Disability tax credit (DTC)

What is the DTC?
IN BRIEF

The Disability Tax Credit (DTC) helps eligible Canadians pay less tax, receive higher family allowances (for parents or guardians of a disabled child), access the Registered Disability Savings Plan (RDSP) and other helpful programs. Applying is free.

Who is the DTC for?

For all Canadians who meet one or more of the following criteria:

 

What is considered a disability?

To qualify for the Disability Tax Credit (DTC), you or your dependent must have a significant and long-term impairment. An activity must be impossible to perform or take at least three times longer than someone of the same age without an impairment, even with care, tools, or medication. The limitation must be present almost all the time and has lasted or is expected to last at least 12 months.

Types of activities taken into account for the DTC

As well as the combination of two or more categories


When only one of the challenges does not meet the criteria, it is also possible to combine two of them. This does not include life-sustaining therapy.

Autism and the DTC

Since 2021, the “Mental Functions” category allows many autistic people to qualify for the DTC, even if they function in the other categories. The same goes for people with a mental health disorder, disabling ADHD, Tourette syndrome, intellectual disability, and other similar conditions.

What does Mental Functions mean?

Excerpt from canada.ca

Adaptative Functioning

  • Adapting to change, expressing basic needs, go out into the community
  • Initiate common, simple transaction
  • Perform basic hygiene or self-care activities
  • Perform necessary, everyday tasks

Attention

  • Demonstrate an awareness of danger and risks to personal safety
  • Demonstrate basic impulse control

Concentration

  • Focus on a simple task for a any length of time
  • Absorb and retrieve information in the short-term

Goal-setting

  • Make and carry out simple day-to-day plans
  • Self-direct to begin everyday tasks

Judgment

  • Choose weather-appropriate clothing
  • Make decisions about their treatment and welfare
  • Recognize the risks of being taken advantage by others
  • Understand the consequences of their actions or decisions

Memory

  • Remember basic personal information (such as date of birth and address)
  • Remembering material of importance and interest to themselves
  • Remember simple instructions

The perception of reality

  • Demonstrate an accurate understanding of reality
  • Distinguish reality from delusions and hallucinations

Problem-solving

  • Identifying everyday problems
  • Implement solutions to simple problems

Regulation of behavior and emotions

  • Behave appropriately for the situation
  • Demonstrate appropriate amotional responses for the situation
  • Control mood to avoid the risk of harm self or others

Verbal and non-verbal comprehension

  • Understand and respond to non-verbal cues and information
  • Understand and respond to verbal information


End of canada.ca excerpt

Applying for the DTC

You can find the T2201 form on the Government of Canada website.

List of professionals who can complete Part B

Many healthcare professionals can fill out the T2201 form. Some can complete all sections, while others can complete only specific sections. Here is the information about this list.

Important

Please note that for people with ADHD, autism or intellectual disabilities, the mental functions section is the most important part.

Preparation

It’s best to be prepared before going to the health care professional.

Many people don’t realize just how much is in place around them to help them function. Asking others for their opinion helps to get a more complete answer.

Then talk to your health-care professional to ensure that you include as much detail as possible on the form. A simple diagnosis is not enough to qualify for the tax credit.

For the doctor

Here’s some additional information for doctors about the expanded criteria.

https://www.conseiller.ca/nouvelles/economie/budget-le-ciph-enfin-elargi/

It’s a good idea to gather all the information, reports, and follow-ups you already have, for the meeting with the healthcare professional responsible for completing Part B of the form. The more complete the information, the better the professional will be able to support the request.

Next steps

Once eligibility for the DTC has been confirmed, the Registered Disability Savings Plan (RDSP) can be opened for the disabled person or their dependent.

Mathieu Boily

Conseiller en sécurité financière
Représentant en épargne collective