Additional Financial Benefits with CRA

Canada Revenue Agency – financial benefits for persons with an ostomy.

Canada Revenue Agency has various financial benefits available for persons living with a disability, including your ostomy. Benefits that can positively impact your yearly income taxes include the Disability Tax Credit (DTC), the Family Caregiver Tax Credit, and claiming Medical Expenses such as ostomy supplies on your annual income tax return.Further to these benefits, persons under 59 who were approved for the DTC are also eligible for the Registered Disability Savings Program. Bonds and grants are available for those under the age of 49, so this is an essential and time-sensitive resource, as it can directly affect your financial future. We will provide a high-level overview of these benefits below. We encourage you to read more at the links provided to the CRA website for a complete description.

The Disability Tax Credit

The Disability Tax Credit is a non-refundable tax credit used to reduce the amount of tax payable on your income. All or part of these amounts may be transferred between your spouse, common-law partner, or another supporting person. Suppose a child under 18 years is eligible for the Disability Tax Credit. In that case, that child is also eligible for the child disability benefit.

Are you eligible?

You are eligible for the disability tax amount when your qualified medical practitioner certifies the Disability Tax Credit Certificate and Canada Revenue Agency approves your application.

How do I qualify?

If you are considered markedly restricted in eliminating, even with appropriate therapy, medication, and devices.
If you are unable or take an inordinate amount of time to personally manage bowel or bladder functions and this is the case all or substantially all of the time (at least 90% of the time). Most persons with an ostomy need to wear an appliance 100% of the time.

When to apply?

The completed Disability Tax Credit form (T2201) should NOT be sent in with your regular tax return. It can be sent in at any time during the year.

Who should apply?

Any person living with an ostomy (bowel or bladder device), or any person’s spouse, common-law partner and a dependant under the age of 18 living together can apply for the person living with the disability.

Any person who has had a duration of a bowel/bladder device for a continuous period of at least 12 months or is expected to last for a continuous period.

Where to get the form?

The form T2201 can be downloaded from the CRA website, or picked up from your local Service Canada Centre office.

Where do I send my completed form?

Send your form completed in full to the Disability Tax Credit unit of your Tax Centre located in your area. See page 6 of the form for your nearest Tax Centre, or visit the CRA website: http://www.cra-arc.gc.ca/.

Who should complete your form?

You can fill out the form, but your medical practitioner must sign your application (listed on page 5 of your form). You are responsible for paying any fees that a medical practitioner may charge. Request that your medical practitioner describe your impairment:

———-

“Uses a device to eliminate the bowel or bladder. This patient is markedly restricted in eliminating with a device and takes an inordinate amount of time to personally manage bowel or bladder functions. in addition, personal management is very costly.”

———-

Request that your medical practitioner include the date of your surgery, the type of surgery and the effects of your surgery on day-to-day living.

What if your application is declined?

Usually, people are declined because the form is not completed properly or they have not waited for one year to pass after surgery. If your application is declined, re-do it and apply at a later date. Remember that you must have had your surgery for 12 months and that your medical practitioner needs to use the recommended wording. Your Notice of Determination should explain why you have been declined.If your Disability Tax Credit is approved, then you will not have to re-apply until the expiry date specified in your letter or earlier if requested by the CRA.

How do I adjust my income tax returns?

When completing your Disability Tax Credit form, fill out Section 3 to adjust the previous year’s tax returns to include the disability amount for yourself or your dependent under 18. This section is for your permission to adjust previous returns if you are a first-time applicant and have had your surgery for previous years up to and including ten years.

Canada caregiver amount

The Canada caregiver credit helps caregivers with the expenses involved with taking care of their spouse or common-law partner or dependant who has an impairment in physical or mental functions, which may include an ostomy. You can claim the Canada caregiver amount on different lines of your tax return depending on whom you are claiming an amount for. See line 30300 and line 30425 in the Federal Income Tax and Benefit Guide for more information.

Canada workers benefit (Line 45300)

The CWB is for low-income individuals and families who earned income from employment or business. It consists of a basic amount and a disability supplement.

You may be able to claim a CWB disability supplement if you meet both of the following criteria:

You are eligible for the DTC.
You had working income in the year.

Medical expenses (Lines 33099 and 33199)

The medical expense tax credit is a non-refundable tax credit that you can use to reduce the tax that you paid or may have to pay. If you paid for ostomy supply expenses, you might be able to claim them as eligible medical expenses on your income tax and benefit return. Generally, you can claim all amounts paid, even if they were not paid in Canada.

You can only claim the part of an eligible expense for which you have not been or will not be reimbursed (i.e. provincial ostomy supply reimbursement, NIHB, Veterans Affairs, private insurance.)

For more information, go to Lines 33099 and 33199 – Eligible medical expenses you can claim on your tax return or see Guide RC4065, Medical Expenses.

Registered disability saving plan

The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with disabilities and their families save for the future. If you have an RDSP, you may also be eligible for grants and bonds to help with your long-term savings.

You should consider opening an RDSP if you have a long-term disability and are:

eligible for the Disability Tax Credit
under the age of 60 (if you are 59, you must apply before the end of the calendar year in which you turned 59)
a Canadian resident with a Social Insurance Number (SIN), and
looking for a long-term savings plan

You may contribute any amount to your RDSP each year, up to the lifetime contribution limit of $200,000. With written permission from the RDSP holder, anyone may contribute to the RDSP.

Canada disability savings grant

The Canada Disability Savings Grant is a matching grant. That means that the Government also pays into your RDSP to help you save. The Government gives matching grants of up to 300 percent, depending on the beneficiary’s family income and contribution. The maximum grant amount is $3,500 per year, with a limit of $70,000 over your lifetime. Matching grants are paid into the RDSP on contributions that are made up to, including December 31 of the year you turn 49 years of age.

Canada disability savings bond

The Canada Disability Savings Bond is money the Government contributes to the Registered Disability Savings Plans (RDSPs) of low- and modest-income Canadians. If you qualify for the Bond, you can receive up to $1,000 a year, depending on the beneficiary’s family income. Over an individual’s lifetime, there is a limit of $20,000. Bonds are paid into the RDSP if an application has been made on or before December 31 of the year the beneficiary turns 49 years of age. You do not need to contribute to your RDSP to receive the Bond.

For more information, please visit the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp.html

For more information about the CRA and disabilities

For further tax information related to disabilities, please visit the CRA website:

Go To CRA Website

give your support

give your support