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.  

 

Re-launching “My DTC”—DABC’s Disability Tax Credit online app

Image that includes a graphic of a smartphone with an app on it, the Access RDSP logo, and text that says "Introducing MyDTC! Visit: https://mydtc.dabc.ca. My DTC is our updated free online tool that can make applying for the Disability Tax Credit easier."

Disability Alliance BC (DABC) is excited to announce the launch of our updated Disability Tax Credit (DTC) online app, now called “My DTC”, which can help people with disabilities across Canada to more easily access the DTC and its related benefits. Check out the app here

Why the DTC is important 

The DTC has always been one of the principal benefits available for people with disabilities. As a non-refundable tax credit, it helps reduce taxes owing. But more importantly, it is also one of the primary ways the federal government recognizes disabled populations in Canada. Over the years, the DTC has been connected to other financial programs like the Canada Workers Benefit Disability Supplement, Child Disability Benefit, Canada Dental Care Plan, and Registered Disability Savings Plan. In July 2025, DTC recipients with lower incomes will be able to access up to $200/month through the anticipated Canada Disability Benefit. Altogether, applying for the DTC can mean hundreds or even thousands of dollars to put towards immediate needs and/or future savings, depending on individual circumstances. 

Most people eligible for the DTC do not have it yet  

The DTC continues to be underutilized due to significant barriers to access. Some people do not know about the benefit, while others do not know that they can qualify. Applying for the DTC can feel overwhelming and can even be financially or administratively burdensome.   

Last year, DABC sent out a survey out to the community to share their thoughts about applying for the DTC. Some of the feedback we heard was:  

“It would be good to have a website of personal experiences of applying for and getting DTC.” 

“My medical practitioner did not think I would qualify but I did.” 

“Doctors need assistance in filling out the paperwork [to understand what] information is required…and how to explain [their] patient’s disability as many are not obvious or simple to explain” 

“The form that my GP filled out was very confusing for him. I ended up writing sections on how the disability affected my daily living based on the sections of the form” 

“I can’t imagine how difficult it must be for someone who doesn’t have experience with documents, or a condition that limits them from persisting” 

“The opportunity to connect with others who have applied and providing medical practitioners with tools [would be] very valuable” 

At DABC, we believe people should get the financial supports to which they are entitled. With this feedback, we were able to create an online app to make the application process a little bit easier.  

How to use the “My DTC” app 

Our new “My DTC” app is a tool created for your individual experience. It features different guides and tools that can help someone get the application process started.  

  • Handbook for individuals: this guide will help applicants learn more about the DTC, its benefits and how to apply.  
  • Handbook for medical practitioners: we recognize that misconceptions about the application process in the healthcare sector mean a lot of eligible people with disabilities are unable to apply. This guide walks through the application process for medical practitioners, so they can learn more about the DTC, how their patients may qualify, and how to help patients apply.  
  • Restrictions Questionnaire Tool: there are a number of reasons why medical practitioners may not have all the information about their patients’ daily restrictions. People can prepare their applications by answering a detailed questionnaire about their restrictions. The tool will generate a custom PDF letter that medical practitioners can include as a supplement to an application, or as information to include on the form.  
  • “My Tasks” Tool: remembering all the steps required to complete the DTC application process can feel daunting. This tool helps someone create a checklist that they can save as a PDF or send to themselves as a text to help them keep on track.  

Join us for a Lunch and Learn on November 15 at 12:00pm – 1:00pm, where we will walk through the My DTC app step by step.  

No matter where you are in the process, DABC can help.  

For more information about our programs and supports, email rdsp@dabc.ca. 

To help cover someone’s DTC medical certification fees, please visit: https://disabilityalliancebc.org/direct-service/dtc-medical-fees-fund/. 

 

Introducing the Disability Tax Credit Medical Fees Fund for BC Residents

Graphic of a hand putting a coin into a box with a slot at the top, the Access RDSP logo, and text that says "Help cover DTC medical fees. People with disabilities should not have to pay money to access social and financial support."

The Disability Tax Credit (DTC) is a key federal disability benefit, but the medical certification needed to apply can be costly. In this article, we discuss why we think it is still important to apply for the DTC, and the actions we are taking to reduce financial barriers to accessing it.  

Why is the DTC important? 

The DTC was first designed as a way to help reduce the strain of the exorbitant costs of living  that people with disabilities often face. As a non-refundable tax credit, it helps people with disabilities and their caregivers reduce the taxes they owe. Over the years, DTC eligibility has been connected to other financial programs like the Canada Workers Benefit Disability Supplement, Child Disability Benefit, Canada Dental Care Plan, and Registered Disability Savings Plan. Altogether, this can mean hundreds or even thousands of dollars to put towards immediate and future needs. It also makes the DTC one of the primary ways the federal government recognizes disabled populations in Canada.  

The DTC can be cost prohibitive 

Despite all its benefits, the DTC is still underutilized, in part because getting the DTC can cost money. While applying for the DTC is free, the application asks people to prove their disability through medical certification, which means medical practitioners have become unwitting gatekeepers to financial supports. The application is long, and medical practitioners can charge for their time.  

DTC medical fees are currently unregulated. At DABC, we hear from our clients that medical fees can cost people anywhere between $100-$250. For anyone living in poverty, the cost of this help can be prohibitive. Put simply, many people are unable to afford the financial support they need.  

The time for action is now.  

DABC has long advocated for better regulations so that compensation for medical certification does not fall on people with disabilities. The time to take action on this issue, however, has become even more urgent.  

In June it was announced that coming July 2025, low-income individuals with the DTC can apply for the Canada Disability Benefit, which can add up to $200/month for those living in poverty. What this means is that a lot more people will need the DTC, and fast.

In this year’s federal Budget 2024, the government announced that they will devote $243 million over 6 years, beginning in 2024-25, to provide coverage for medical certification fees with $41 million each following year. We are happy to hear that the government will provide some financial relief for these costs and know that people will need to receive this relief soon. We have joined our partners at Indigenous Disability Canada, and a coalition of other disability organizations in requesting for immediate release of this funding. Read the letter here

DTC Medical Fees Fund for BC Residents 

While we wait for federal funding, we know that the funding allocated may not come as soon as people need and may not be enough to cover all the costs someone might be facing. That’s why we’re launching the DTC Medical Fees Fund to help fund individuals who need support as soon as possible. We envision this fund as a mutual aid hub, where all proceeds will go directly to the people that need it. People with disabilities should not have to pay money to access social and financial supports. Help us raise money by contributing to the fund or by sharing with others who may be able to contribute.  Fundraising begins this month but will continue as long as there is a need.  You can donate to the fund via the donate button here: https://disabilityalliancebc.org/direct-service/dtc-medical-fees-fund.

Stay tuned for more details on how to apply for funding.