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Disability Tax Credit

by Allison Schmidt 10 February 2011 13:45

The lead story on the CBC National News last night was on Disabilty Tax Credit abuse and the various agencies that have enabled and facilitated these applications.

Most people who claim the disability tax credit are eligible for the benefit.

Many more people with disabilities who would be eligible for the disability tax credit get no benefit of the Disability Tax Credit because they do not have a taxable income.  The Disability Tax Credit should be a refundable benefit I know many individuals with disabilities who survive on incomes below or close to poverty levels - if they had the extra refunded benefit - like the GST or Child Tax benefit - that would be a large financial improvement in their lives. 

Disability Tax Credit eligibility also determines eligibility for other benefits such as the Child Disability Benefit, the Registered Disability Savings Plan, the Working Income Tax Disability Benefit.  It is no longer simply used as a mechanism for offsetting the additional costs of disability for those with a taxable income.

It is easier for those with mobility or sensory impairments to become eligible than those with cognitive impairments in that the evidentiary base is easier to identify and establish- many individuals with mental health, intellectual disabilities, brain injuires, learning disabilities, and episodic disabilities have a hard time qualifying.

Using doctors as the gatekeepers for this benefit is a poor use of an expensive and limited resource.  The Canada Revenue Agency should explore other means of gatekeeping this deduction.

This is the message from the disability community.

 

 

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