The Disability Tax Credit (DTC) is a non-refundable federal tax credit that reduces income tax owed by individuals with severe and prolonged impairments, administered by CRA under section 118.3 of the Income Tax Act.
Who Qualifies
To qualify, a qualified practitioner must certify on Form T2201 that you have a severe and prolonged impairment in one or more basic activities of daily living, are blind, or require life-sustaining therapy.
Appealing a Denial
CRA regularly denies DTC applications. A denial is not the end of the road. Options include: requesting a second review; filing a formal Notice of Objection within 90 days of the reassessment; and, if unresolved, appealing to the Tax Court of Canada under the Informal Procedure. The Tax Court evaluates whether CRA correctly applied the statutory criteria and may hear medical evidence.
Limitation Periods
Missing the 90-day deadline to object can result in losing your appeal rights. Extensions are available only in limited circumstances. Act promptly.