- This topic has 2 replies, 2 voices, and was last updated 5 years, 2 months ago by
.
-
Posts
-
Disability Tax Credit (DTC) is non-refundable tax credit if you qualify the criteria defined by Canada Revenue Agency (CRA) . If you personally qualify for the DTC you may claim $8,416 for the disability amount on your tax return. If you are a patient with urostomy or Indiana pouch, you will likely qualify for DTC provided that the information your doctor provides to CRA meets the qualification criteria. I will describe what I know a few key points also I will recommend to publish on its site and paper brochures about DTC as Ostomy Society of Canada has done so. I also hope others, especially if you are a tax accountant and those who had qualified for DTC will post their comments on this matter, so together we can help the patients legitimately qualify for DTC.
1. DTC is non-refundable tax credit. It means if you are not paying any tax now or have not paid any tax during last 10 years , you will not benefit from DTC. On the other hand, if you are paying any amount in tax, DTC should benefit you. I.e. if you have $40,000 taxable income after deductions, you should get $2,000 – $3,000 tax deduction depending on which province you live.
2. You will need to submit T2201 form. T2201 consists of Part A and Part B. Part A needs to be filled and signed by the patient. Part B needs to be filled by a doctor (i.e. GP, Urologist) or a nurse practitioner (as of 2017). Usually the urologist performed your urinary diversion surgery is a good choice to fill Part B.
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2201.html
3. Do not rush to submit T2201 because once your application is accepted and qualified for DTC, the tax credit will be applied retroactively for 10 years. CRA says If a person was eligible for the DTC for previous years but did not claim the disability amount when they sent their tax return, they can request adjustments for up to 10 years under the CRA’s Taxpayer Relief Provision though you will need to ask for a reasssessment.
4. Submit the application only when the content of the application has high probability of acceptance. As I have mentioned I know both a patient with urostomy and a patient with Indiana Pouch have qualified for DTC.
5. You do not have to wait for one year. Urostomy and Indiana Pouch should qualify as soon as the surgery is done because the urinary diversion is permanent.
6. If your application is rejected, you have only 90 days to challenge. CRA will send you the reasons why your application was rejected. I do not worry about the rejection because of Part A You probably have made some simple errors.
7. If your application is rejected because of what the medical professional who filled in Part B, I expect it will be difficult to reverse the CRA decision unless it is simple errors like not filling in the year of surgery or the category of Restriction was not specified.
8 Usually, the medical practioner of your choice should “Elimination” as the category of disabilities. Elimination includes Bladder and Bowel. Then check “YES” box. If “No” box is checked, your application will be likely rejected.
9. The section “Effects of impairment” on page 5 of T2201 is likely the most important part which CRA determines if the applicant is qualified for DTC. Because every urologist, GP or nurse practitioner writes their version of perception or their version of knowledge of effects of impairment of their patients with Urostomy or Indiana Pouch. So it is possible that the description of effects of impairment of Indiana pouch by one urologist may qualify for DTC and the description of effects of impairment by another urologist may not qualify for DTC. The best way is to ask the urologist which I recommend the most, or GP or a nurse practitioner if the patients for he or she filled Part B of T2201 had been accepted for DTC.
I will finish for now. I will post again for other related information. Meanwhile I invite others to post and share your success stories of getting DTC approved by CRA.
Joe
Some Stats here for Disability Tax Credit (DTC)
During the fiscal year 2016-2017 for “Eliminating”, 23,688 new applications processed and accepted & 2,172 new applications processed and rejected. That’s like 92% success rate for an application to be accepted.
In the same fiscal year, 87.5 million dollars were claimed as DTC for Eliminating. The total DTC claimed for all disabilities was 1.31 billion dollars.
CRA does not have stats separated for Bowel and Bladder.
Take home is that given a very high acceptance rate (92%), something is wrong if patients with urostomy or Indiana pouch do not get the acceptance for their DTC applications for Eliminating.
- You must be logged in to reply to this topic.
