Eligibility Requirements: The Disability Tax Credit and the Registered Disability Savings Plan
At DABC we’ve heard from a lot of people that they are unsure if they qualify for the Disability Tax Credit (DTC) and Registered Disability Savings Plan (RDSP). To celebrate RDSP Awareness Month, we’ve prepared this post which we hope will clarify some of the eligibility requirements.
The DTC is an income tax credit that can help reduce the income tax that you or someone who supports you owes. It is also a prerequisite for opening a RDSP.
The DTC is a Canada-wide benefit and there is no age requirement.
To qualify for the DTC, your disability must be expected to continue for at least 12 months and you must fall into any one of the ten categories below:
- You are blind (or legally blind)
or you are markedly restricted in an activity of daily life. This means you are unable or take significantly longer to perform at least one of these functions (substantially all of the time):
- Eliminating (bowel or bladder functions)
- Mental functions necessary for everyday life, or,
Even if you are not markedly restricted in one of these areas you can still qualify if you:
- Have cumulative significant restrictions in two or more of the activities listed above such that you have a marked restriction overall, or,
- Require life-sustaining therapy at least three times per week, for an average of 14 hours per week.
Unlike the DTC, there are age requirements for the RDSP.
To qualify for the RDSP you must:
- Be up to date on filing your income taxes
- Be able to provide your SIN number
- Be under 60 years of age
If you open an RSDP, you may be eligible to receive government grants and bonds up to a lifetime maximum of $90,000 until you turn 50. For information on the benefits of the DTC/RDSP for people over 50, please see Access RDSP’s guide: https://bit.ly/33NnZrs.
For more information about DTC and RDSP eligibility and RDSP age requirements:
- Help Sheet 14: The Disability Tax Credit: https://disabilityalliancebc.org/hs14/
- Help Sheet 15: The Registered Disability Savings Plan: https://disabilityalliancebc.org/hs15/
- RDSP.com: https://www.rdsp.com/how-do-i-qualify/
- DABC and Access RDSP offer one-to-one support with the DTC and RDSP.
Contact info: https://www.rdsp.com/supports-and-services/
#RDSP #RDSPAwarenessMonth #PlanToPlay