By now most of you have probably completed and filed your income tax returns for 2019. Did you know there is a tax credit for people that suffer with severe and prolonged impairments in physical or mental functions? As long as you have this disability currently all or substantially all of the time, at least 90% of the time, and it is expected to last for a continuous period of at least 12 months you may be able to qualify for an additional tax credit.
A lot of people living with physical and or mental function challenges have not taken advantage of the disability tax credit that our federal government allows. You could be leaving money on the table.
Eligibility is based on the effects of the individual’s impairment, which must fall into one of the following categories:
-Vision
-Basic activities of daily living which includes speaking, hearing, walking, eliminating, feeding, dressing and mental functions necessary for everyday life.
-Life sustaining therapy
-The cumulative effect of significant restrictions in two or more of the basic activities of daily living, or in vision and one or more of the basic activities of daily living.
You can be working and still qualify for the disability tax credit if you have one or more of the above conditions.
Whether you qualify or somebody you know would qualify you need to complete form T 2201, the disability tax credit certificate. This would be completed by you and your doctor. Once completed and mailed off to CRA, they will advise whether or not you qualify for this tax credit. Once you qualify you do not have to reapply every year unless your condition will improve within a period of time that is stated by your doctor.
Don’t suffer in silence. If you or someone you know could qualify, get form T 2201 and book your doctor’s appointment for completion. This tax savings could ease the pain a bit of your current impairment. You can call us or your accountant if you want more information on this tax credit. There are other benefits that you may qualify for if approved by CRA if you are under age 60.
This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
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