Disability Tax Credit (DTC) Canada 2024

What Is the Disability Tax Credit?

The DTC is a non-refundable tax credit that reduces income tax for people with severe and prolonged physical or mental impairments. It recognizes the additional costs faced by people with disabilities.

2024 Credit Amounts

Base federal amount: $9,428 (15% = $1,414 credit)
Supplement for under 18: Additional $5,500 (15% = $825)
Provincial amounts: Additional credit varies by province

Eligibility Requirements

To qualify, you must have a severe and prolonged impairment that:

"Severe" Means

Markedly restricted in a basic activity of daily living, OR
Significantly restricted in two or more activities (cumulative effect), OR
Requires life-sustaining therapy at least 3 times weekly, averaging 14+ hours

"Prolonged" Means

The impairment has lasted, or is expected to last, at least 12 continuous months

Basic Activities of Daily Living

Speaking: Unable to be understood in familiar surroundings
Hearing: Unable to hear to understand in familiar surroundings
Walking: Unable to walk 100 meters on level ground
Feeding: Unable to feed oneself
Dressing: Unable to dress oneself
Eliminating: Unable to control bowel/bladder functions
Mental functions: Severely impaired memory, problem solving, goal setting, judgment, or adaptive functioning

Key Point: "Markedly restricted" means taking an inordinate amount of time (at least 3x longer than normal) to perform the activity, even with therapy, medication, or devices.

Qualifying Conditions (Examples)

The DTC is based on functional limitations, not diagnosis. However, these conditions often qualify:

Type 1 diabetes (life-sustaining therapy)
Autism spectrum disorder
ADHD (severe cases)
Blindness or severe vision impairment
Deafness or severe hearing impairment
Mobility impairments requiring wheelchair
Multiple sclerosis
Celiac disease with significant restrictions
Crohn's disease (severe)
Mental health conditions (severe depression, bipolar, PTSD)
Learning disabilities (severe)

How to Apply: Form T2201

Step 1: Get the Form

Download Form T2201 (Disability Tax Credit Certificate) from CRA's website or get it from your medical practitioner.

Step 2: Complete Part A

You complete Part A with your personal information and consent.

Step 3: Medical Practitioner Completes Part B

A qualified medical practitioner must certify your impairment. Allowed practitioners:

All impairments: Medical doctor
Vision: Optometrist
Speech: Speech-language pathologist
Hearing: Audiologist
Walking: Physiotherapist, occupational therapist
Mental functions: Psychologist
Feeding/Dressing: Occupational therapist

Step 4: Submit to CRA

Mail or submit online through My Account. CRA reviews and responds within 8-10 weeks.

Important: Medical practitioners may charge a fee to complete the T2201 (typically $50-$200). This fee is not covered by provincial health plans.

Retroactive Claims

If approved, you can claim the DTC for past years:

Request adjustment for up to 10 previous tax years
CRA determines the year disability began based on medical certification
Use Form T1-ADJ or My Account to adjust past returns
Interest paid on refunds for past years

Transferring the DTC

If you don't need the full credit to reduce your taxes to zero, you can transfer all or part to a supporting person:

Eligible Transferees

Spouse or common-law partner
Parent, grandparent, child, grandchild
Sibling, aunt, uncle, niece, nephew
In-laws in these categories

Support Requirement

The supporting person must have provided support at some time during the year. This is broadly interpreted.

Related Benefits Unlocked by DTC

DTC approval opens access to:

RDSP: Registered Disability Savings Plan with government grants
Child Disability Benefit: Up to $3,173 annual supplement to CCB
Working Income Tax Benefit: Higher disability supplement
Medical expenses: Expanded list of claimable items
Home Buyers' Plan: Extended repayment period

Supplemental Amount for Children

Children under 18 at the end of the tax year may qualify for the supplementary amount ($5,500 for 2024).

Reduction for Care Expenses

The supplement is reduced dollar-for-dollar by:

Childcare expenses claimed
Attendant care claimed as medical expense

Common Reasons for Denial

Incomplete medical section: Practitioner didn't fully describe limitations
Wrong practitioner type: Not authorized for that impairment
Condition controlled by medication: Must still be markedly restricted
Temporary condition: Must be expected to last 12+ months

Appealing a Denial

If denied, you can:

Request clarification: Ask CRA what information was missing
Submit additional information: Provide more medical documentation
File a Notice of Objection: Formal appeal within 90 days
Appeal to Tax Court: Final recourse if objection denied

Maintaining DTC Status

Some approvals are indefinite; others have end dates
CRA may request updated T2201 periodically
Notify CRA if condition improves significantly
Check your approval letter for expiry date

Tips for Successful Applications

Be thorough: Ensure practitioner describes worst-case scenarios, not best days
Focus on duration: Emphasize how long tasks take, not whether you can do them
Include all impairments: Cumulative effect may qualify even if single impairment doesn't
Choose the right practitioner: Specialist familiar with your condition is ideal
Don't give up: Many successful claims were initially denied

Questions About the DTC?

Our AI tax assistant can help answer specific questions about disability tax credit eligibility.

Ask the Tax Assistant

Disclaimer: DTC eligibility is complex and case-specific. This guide provides general information. Consult a medical professional and consider disability tax credit specialists for assistance with applications.

Disability Tax Credit (DTC): Complete Guide

Significant Tax Savings