Introducing the Disability Tax Credit Medical Fees Fund for BC Residents
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.
