What is the Disability Tax Credit (DTC)?

   

The Disability Tax Credit is an important tax credit for Canadians with disabilities, not just because of the $8,113 disability amount.  The DTC allows you to unlocks a number of credits, deductions and benefits that can be claimed by the individual and their caregivers.

***Exponent Investment Management is a Financial Planning and Investment Management firm, not an Accounting practice.  All information provided below is for reference purposes only and should not be construed as tax advice.***

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The DTC is a non-refundable personal tax credit.  Non-refundable tax credit can reduce taxes payable to zero, and can generally cannot  be carried over into future years (with the notable exceptions of the charitable donations, tuition education and textbook amounts and medical expenses).

Non-refundable federal tax credits are totalled in Schedule 1 of the T1 return.  The aggregate value is inputted on line 350 and reduces Federal Taxes  on the way to calculating Net Federal Taxes (line 420).

Below is a summary of the federal tax credits, tax deductions and benefits outlined in Disability Related Information Guide for 2017 (RC-4064).

Credit Amount Eligibility requirements Claimed for T1 line
Disability Tax Credit $8,113
  • Medical practitioner must certify form T2201 that you or your dependent(s) have a severe and
    prolonged impairment in physical or mental functions;
  • Resident of Canada at any time during tax year
  • Self
  • Spouse
  • Common Law Partner
  • Individuals with eligible dependent children other eligible dependents
line 316/318/326
Supplement for persons under 18 Up to $4,733
  • Under age 18
  • No one claimed child care expenses  line 330/331
  • Individual claimed attendant care expense line 215
  • Self
 line 316
Medical Expenses Eligible medical expenses minus lesser of $2,268  of 3% of line 236  Expenses must be eligible
  • Self
  • Spouse
  • Common Law Partner
  • Individuals with eligible dependent children other eligible dependants
line 330/331
Home buyers’ amount  $5,000
  • Bought a home for the benefit of a related person who is eligible for the DTC.
  • Self
  • Related person who is eligible for the disability tax credit
line 369
Home accessibility expenses Up to $10,000
  • 65 years of age or older; or
  • DTC eligible
  • Self
  • Individuals with eligible dependent children other eligible dependants
line 398
Refundable medical expense supplement  Up to $1,203
  • Working,
  • Have low income, and
  • Have high medical expenses
  •  Self
 line 452
Amount for an eligible dependant Up to $11,635
  • Dependant has an impairment in physical or mental functions
  • Individuals with dependent children other eligible dependants
line 305
Canada Caregiver Amount - New for 2017

Up to $6,883 for children under 18 and grandchildren

Up to $2,150 for children over 18 and other dependents

  • Born in 1999 or earlier;
  • Have an impairment in physical or mental functions;
  • Dependent on you, or on you and others, for support; and
  • Resident of Canada at any time in the year 
  • Self
  • Individuals with dependent children other eligible dependants
 line 305/307/367
Working income tax benefit (disability supplement)

Up to $521

  • Low-income individuals and families
  • DTC eligible; and
  • Working income in the year.
  • Self
line 453
Child disability benefit

Up to $227.50/eligible child

  •  DTC eligible
  • Reduced if over Average Family Net Income (AFNI)
  •  Families
 T2201
Disability supports deduction

Calculated on T929

  • Low-income individuals and families
  • Individual DTC eligible; and
  • Working income in the year
  • Self
line 215
Attendant care services

As medical expenses when disability amount is being claimed:

  • $14,066 (ON)
  • $28,130 year of death 

If eligible for disability amount but not being claimed:

  • Unlimited (ON)

Full time attendant care:

  • Individual DTC eligible; or
  • Medical practitioner certifies in writing that these services are necessary and that your
    impairment is likely to be indefinite
Part time attendant care:
  • DTC eligible


  • Self
  • Spouse
  • Common Law Partner
  • Individuals with dependent children other eligible dependants
line 330


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