The Lucrative Disability Tax Credit

Did you know that the Disability Tax Credit is not only lucrative when it is claimed on the tax return, but it is required to enable fifteen other provisions on the return. There is so much money left on the table when this provision is missed. Here are the additional provisions, and why working with a DMA™ Personal Tax Services Specialist is so important. In fact, it’s not too late to get this credential yourself before the start of the tax season.   

The Backdrop. The Disability Tax Credit is claimed by someone who is markedly restricted in their daily living activities and their afflictions are certified on Form T2201 by a qualified medical practitioner. 

The amount of the credit in the 2025 tax filing year is $10,138, with an additional supplement for minor children. The amount can be transferred to a higher income supporting individual as well if the qualifying individual’s income is too low to use it.

Here are the other tax provisions this credit enables:

• The CDB – Canada Disability Benefit
• The Child Disability Benefit
• Medical expense tax credit  - certain qualifying expenses on this list require the DTC
• CWB – Canada Worker’s Benefit
• Child care expenses
• Claims for students with disabilities
• Home Accessibility Tax Credit
• HBP – Home Buyer Plan under the RRSP
• Home Buyer’s Amount
• Refundable medical expense supplement
• Multi generational home reno tax credit
• Disability supports deduction
• RDSP
• QDT – Qualified Disability Trust
• Disability-related employment benefits

Bottom Line – stay up to date with important tax filing news for families in your community. Knowledge Bureau has two opportunities to empower knowledge and share tax peace of mind:

For experienced professionals – the January 21 Advanced Tax Update and the Advanced Tax Planning and Compliance Series

For Beginners –  T1 Tax Preparation School. Start the online course anytime, 24/7 and then take the live-virtual peer-to-peer instruction.