What the Disability Tax Credit means for the new Canada Disability Benefit

Starting in July 2025, individuals who are low-income will be able to apply for the Canada Disability Benefit (CDB). This new monthly benefit will be up-to $200 and is intended as financial relief for people with disabilities living in poverty. The CDB will be an additional amount of money that will not be clawed back from current provincial disability assistance. We know that $200/month is far from being enough to lift people with disabilities out of poverty. More information on DABC’s thoughts on the proposed regulations can be found in our position statement on the 2024 Federal Budget and in-depth review of the CDB.  

The proposed eligibility requirements for the benefit are: 

  1. Be a resident of Canada for tax purposes 
  2. Have an active Disability Tax Credit (DTC) with the CRA
  3. Be up-to-date with filing your taxes 

Once you meet these requirements, you will then have to submit a separate application for the CDB.  

This means having the DTC will become even more crucial for people with disabilities who are trying to access other government benefits.  

Barriers to the DTC 

One of the greatest barriers preventing people from accessing the DTC is the lack of awareness and understanding around it. Many people do not know that it even exists, or if they do, they do not realize they can qualify for it.  

Another major barrier is the application process itself. The 16-page application, called Form T2201, can be overwhelming and discouraging to people wanting to apply. The form requires medical certification which can be very difficult for Canadians who do not currently have a family doctor and are struggling to find one. A lack of awareness and understanding also extends to the medical practitioners that need to sign off on the forms. Medical practitioners might not be entirely aware of the daily restrictions their patients deal with, and therefore may not know how to fill out the forms accurately.  

There are also the financial barriers to accessing the DTC. Currently, the medical practitioner fees to fill out the forms are unregulated. People who are already financially struggling might be forced to pay hundreds of dollars out of pocket to have the forms certified by doctors who want to be compensated for their time spent on the lengthy forms.  

CDB Budget to Cover DTC Medical Practitioner Fees  

It was announced in this year’s federal budget that there will be funding intended to provide coverage for these costs, but the government has not announced when it will be made available, and how much of the costs will be covered.   

DABC has launched a DTC Medical Fees Fund for individuals who need funding as soon as possible. You can find out more in our official announcement post here. 

Apply for/Renew the DTC 

Applying for and renewing your Disability Tax Credit can take time. It requires both Part A and Part B of the Form T2201 to be submitted to the CRA. Once both parts are submitted, it can take the CRA months to review and approve the application. With more and more people becoming aware of and applying for the DTC, CRA wait times may become even longer. For individuals who want to be able to apply for the new Canada Disability Benefit as soon as it is available next year, we encourage you to apply for the Disability Tax Credit as soon as possible. 

DABC has many resources available for those looking to apply, including a re-launch of our “My DTC” online app. You can find out more here 

We also have a useful DTC Helpsheet where you can find out more benefits to getting approved for the DTC. 

We have advocates who can provide 1-on-1 support to clients with filling out the application. Please be advised that we are anticipating more individuals seeking advocate support in the upcoming months with the benefit announcement. We encourage you to reach out for their assistance as soon as possible to access the benefit when it becomes available next year. 

Please reach out through phone at (604)-923-8136 or email us at rdsp@dabc.ca. 

The Canada Disability Benefit as proposed is not adequate, but it will be an important benefit for people with disabilities moving forward. There is more work to be done. Read more about the Canada Disability Benefit from experts, community members, and advocate in our upcoming issue of Transition Magazine.  

 

#BudgetTheBenefit campaign

It has been almost 3 years since the federal government promised to create a monthly Canada Disability Benefit for people with disabilities between the ages of 18 and 64. This Benefit, when combined with other income supports, aims to lift people with disabilities out of poverty.

Take action to ensure Bill C-22 is passed into law swiftly by joining the #BudgetTheBenefit campaign, led by Disability Without Poverty!

Send a digital postcard to your MP here:
https://www.disabilitywithoutpoverty.ca/ask-your-mp/?swcfpc=1

Disability Without Poverty‘s demands are:

  • Bill C-22 for a Canada Disability Benefit needs to be passed into law this Spring 2023
  • People with disabilities must be engaged in designing the benefit and implementing it in their province
  • Fund and rollout the Canada Disability Benefit in 2023. Funding must be adequate enough to lift people with disabilities out of poverty