Understanding Disability Tax Credits (2023)

Cynthia Minh, Director of Tax AID & Access RDSP at Disability Alliance BC, shared insights in the webinar about the Disability Tax Credit (DTC) and Registered Disability Savings Plan (RDSP). The DTC, aiding Canadians with severe and prolonged physical impairments, requires meeting specific criteria involving impairments in daily activities and medical certification. It acts as a gateway to various federal financial programs, including upcoming benefits like the Canada Disability Benefit.

Eligibility for the DTC, determined by the Canada Revenue Agency (CRA) based on significant restrictions in daily living activities, necessitates providing specific examples to medical practitioners. The application process takes three to four months for the CRA to assess.

Cynthia also highlighted the RDSP, a government-supported savings plan facilitating future savings for individuals with disabilities. Government contributions match individual contributions up to annual limits, with grants and bonds available based on income levels, offering a maximum lifetime grant of $70,000 and a lifetime bond limit of $20,000. Additionally, retroactive grants and bonds for up to a decade before opening an RDSP are available.

**Disclaimer: These sessions are designed to provide general education and are not intended for individual advice and/or clinical care. The information conveyed in this recording was accurate at the time of presentation.**