Today, October 1st, marks the beginning of RDSP Awareness Month! In 2014, the government of BC declared October RDSP Awareness Month to help raise awareness about the Registered Disability Savings Plan (RDSP). The RDSP is the world’s first savings plan specifically designed for people with disabilities.
The RDSP is particularly revolutionary because people who are eligible for the RDSP can benefit even if they cannot put any money into the plan or can contribute very little. Individuals 49 and under who qualify for the RDSP may be eligible for government grants and bonds, which can total up to $90,000 over the lifetime of the RDSP—and, in BC, it will not affect other disability benefits.
To open an RDSP, you must be found eligible for the Disability Tax Credit (DTC). More people would qualify than you might think.
Do you have difficulty with either walking, eating, making meals, getting dressed, speaking, hearing, seeing, using the toilet, or with mental functioning? Or do you need a type of therapy to help keep you alive? If so, watch this space and follow us on social media to learn more about how you might be eligible.
Throughout October we’ll be posting about all things RDSP and DTC, including:
Access RDSP’S two upcoming “Ask the Experts” online sessions: Disability Tax Credit and Tax Topics on the DTC (October 22nd) and the RDSP and Financial Planning (October 27th)
Our DTC Medical Fees Fund, through which we aim to lessen financial barriers people may experience to applying for the DTC
The DTC and the Canada Disability Benefit (CDB)
The DTC and its other benefits
If you need help with the Disability Tax Credit:
BC Residents: Contact Access DTC at dtc@dabc.ca or 604-923-8136
The proposed eligibility requirements for the benefit are:
Be a resident of Canada for tax purposes
Have an active Disability Tax Credit (DTC) with the CRA
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 Creditas 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.
In 2014, the government of BC declared October RDSP Awareness Month to help raise awareness about the Registered Disability Savings Plan (RDSP) and its prerequisite, the Disability Tax Credit (DTC).
The RDSP was created by the federal government as a long-term savings plan for people with disabilities and their families. Eligible people can benefit from an RDSP even if they cannot put any money into the plan and it will not affect their other disability benefits. Individuals 49 and under who qualify for the RDSP may be eligible for government grants and bonds, which can total up to $90,000 over the lifetime of the RDSP – even with little to no personal contributions.
We’ve just launched our updated DTC tool, now called “My DTC”, to help people get the process started. Check it out here! We will be joining our Access RDSP partners in hosting online “Ask the Experts” webinars on the DTC and RDSP. Register for the October 9th session here or the October 30th session here. We are also introducing the DTC Medical Fees Fund—a fundraiser to help people cover the cost of out-of-pocket medical fees when applying for the DTC.
You can also find information at https://www.rdsp.com/supports-and-services/access_rdsp about Access RDSP, a partnership between DABC, Plan Institute and BC Aboriginal Network on Disability Society (BCANDS). Access RDSP provides free year-round support on the RDSP and DTC.
Follow us this month on Facebook, Twitter, and LinkedIn to see everything we are doing to celebrate. And use #RDSPAwarenessMonth when you’re talking about RDSP Awareness Month!
