On October 4th, the Canada Revenue Agency (CRA) released a new version of the Disability Tax Credit (DTC) Certificate (Form T2201). The DTC is a non-refundable tax credit that helps people with disabilities or their support person reduce the amount of income tax they may have to pay. Eligibility for the DTC is also a prerequisite to opening a Registered Disability Savings Plan (RDSP), which we’re talking about more than usual right now because October is #RDSPAwareness Month. Everyone should be talking about the RDSP!
Form T2201 is now lengthier—with space for medical practitioners to detail how applicants are restricted under each criteria. Medical practitioners can also fill out their portion of their form online before printing it off for applicants to sign and submit. To view the new form and learn more about how to submit an application, visit: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2201.html.
What is the RDSP? The Registered Disability Savings Plan (RDSP) is the world’s first savings plan designed for people with disabilities. Even with little to no personal contributions, government contributions can be significant. For people with low income (less than $32,028), the federal government will deposit up to $1000 each year for 20 years!
Everyone should be talking about the RDSP! Unfortunately, we know this isn’t the case. Even with the financial security that it can provide, many people who qualify still don’t have an RDSP. Being approved for the DTC is the most important thing to have before you can open an RDSP, and can allow eligible people with disabilities to access many other benefits and credits.
People with disabilities should not face disproportionate barriers to achieving financial security. This month, the Access RDSP partnership between DABC, Plan Institute, and BCANDS celebrates the RDSP by discussing its potential to reduce poverty and promote financial security.
Help Us Spread the Word! We hope you join us in spreading the word so that everyone eligible can access the RDSP. Visit www.rdsp.com to find out how you can get the word out, engage with us here on Facebook and on Twitter at @DisabAllianceBC using the hashtag #RDSPAwareness, and encourage people who would benefit from the RDSP to find out more.
Together, let’s get everyone talking about the RDSP.
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:
COVID-19/DABC OFFICE UPDATE
After much discussion and consideration of the risks associated with COVID-19 as well as the needs of clients who require in-person support, DABC’s office will re-open soon to some clients. We will be re-opening using a staggered approach to lessen risk and allow us to adjust to welcoming clients to a new space.Click here for more info.
Since 1977, Disability Alliance BC has been a provincial, cross-disability voice in British Columbia. Our mission is to support people, with all disabilities, to live with dignity, independence and as equal and full participants in the community. We champion issues impacting the lives of people with disabilities through our direct services, community partnerships, advocacy, research and publications.
We acknowledge and have deep gratitude to work together on the unceded traditional territories of the xʷməθkʷəy̓ əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and Selíl̓witulh (Tsleil-Waututh) Nations of the Coast Salish people. We honour the many territorial keepers of the lands.