Reassessing Attendant Care Expenses and the Disability Tax Credit

Ruth Horst

With the personal tax filing deadline behind us, now is the time for a second look—especially when it comes to medical expense claims and eligibility for the Disability Tax Credit (DTC). Many Canadians with disabilities, or those who care for them, may have overlooked or under-claimed important tax benefits during the initial rush to file. Post-tax season is the perfect opportunity to review, adjust, and plan for maximum tax efficiency going forward. One area worth special attention is the intersection of attendant care expenses and the DTC—a combination that, if not claimed carefully, can leave tax savings on the table.

Attendant Care, as defined by the Canada Revenue Agency (CRA) is care provided by an attendant who helps with personal tasks that an individual cannot perform for themselves. This care can be received in certain types of facilities or through paid attendant care provided by someone who is not a spouse or common-law partner. The attendant must be over the age of 18 years and must issue a receipt along with their SIN, if they are an individual.

Nursing Homes & Care Facilities – These include schools, institutions, or places that provide care or both care and training. These facilities offer full-time care, including nursing services, to individuals who are unable to care for themselves. This category also includes rehabilitation facilities and detoxification clinics.

Retirement Homes, Group Homes, and Self-Contained Domestic Establishments (your private home) – Fees for salaries and wages paid for attendant care may be claimed. However, costs for rent, food, cleaning supplies, and other ineligible expenses cannot be claimed. The Canada Revenue Agency (CRA) requires a detailed breakdown of the expenses paid in order to claim this credit.

For individuals living in their private home but requiring additional care, costs paid to for housekeeping services, laundry services, meal services, transportation services, and health care services (such as nursing care, health care aides, or personal support workers) qualify for the METC.

Disability Tax Credit (DTC) is a non-refundable tax credit that helps individuals with a physical or mental disability, or their supporting family member, reduce the amount of income tax that they may need to pay. To qualify the individual must have a severe and prolonged impairment that markedly restricts their ability to functioning and is expected to last for at least 12 continuous months.

In order to qualify for the DTC, the impairments could be in the areas of:

• Walking
• Mental Functions
• Dressing
• Feeding
• Eliminating
• Speaking
• Hearing
• Vision

Lesser restrictions in multiple areas may qualify for the credit.

To apply for the DTC, an application (T2201) must be submitted to the CRA. Once submitted, the CRA will review the application and either grant the DTC or deny the DTC. The individual or their representative must fill out the first section of the T2201, which includes authorization for a medical practitioner to disclose medical information to the CRA. The practitioner must then complete the form.

Once completed, the practitioner can either return the form to the individual or submit it directly to the CRA digitally. If the individual receives the completed form, they can mail it to their CRA Tax Office or submit it online through MyAccount or Represent-A-Client. If mailing the form, it is highly recommended that the individual retain a copy of the T2201 for their records.

The CRA target processing time for these applications is 8 weeks. However, a high volume of applications may delays. Additionally, if the CRA requests further information from the medical practitioner, additional delays may occur. The DTC cannot be claimed until CRA approves the application. If the approved DTC has an expiry date, a new application must be submitted as the expiry date approaches.

If the medical practitioner charges a fee for filling out the T2201 and the fee is not reimbursed, this fee qualifies as a medical expense.

The basic Disability amount for 2024 is $9,872. There is an additional supplement of $5,758 for children under the age of 18. If there is a childcare claim for the child with the DTC, the supplement amount will be reduced by the amount of childcare claimed. Unused amounts of the DTC may be transferred to a spouse or common-law partner, to a parent or other supporting individual.

Attendant Care & the DTC – There are special rules for claiming Attendant Care as a medical expense and the Disability Tax Credit (DTC) as a non-refundable tax credit (NRTC). A limit of $10,000 applies for claiming Attendant Care if the DTC is also claimed during the tax year. In the year of death, this limit is increased to $20,000.

Many individuals in long-term care or assisted living have Attendant Care expenses that significantly exceed the $10,000 limit. When filing the tax return, it is crucial to carefully assess both scenarios to ensure the tax return is filed to the best advantage of the taxpayer. If claiming 100% of the Attendant Care without the DTC results in less tax payable for the year, it may be beneficial not to claim the DTC.

The DTC & Other Claims – The DTC can lead to tax savings through multiple credits and deductions, opening up additional opportunities for financial relief.

Disability Support deduction – a person with an impairment may be able to claim some of their medical expenses as a deduction on line 21500. However, any amounts claimed on line 21500 cannot also be claimed as a medical expense online 33099. The expenses can either be claimed entirely on one line or split between the two, as long as the total does not exceed the amount paid.

This deduction may be claimed by individuals who work, attend school or do research for which a grant was received. Unlike the non-refundable tax credit for medical expenses, this deduction reduces taxable income on a dollar-for-dollar basis.

The expenses allowed for this deduction are limited to expenses for certain equipment or services that may be required in order for the person to earn income.

Individuals that have permanent mobility impairment and cannot safely use public transportation can request a refund of part of the federal excise tax on the gasoline they purchase. This is done using Form XE8.

Canada Caregiver Credit – this credit helps caregivers with the expenses involved in taking care of their spouse, common-law partner, or dependant who has an impairment in physical or mental functions. It is a non-refundable tax credit (NRTC) and is claimed on different lines of the tax return, depending on for whom the claim is being made. For 2024, the maximum claim is $2,616. If audited by the CRA, either a valid DTC must be on file, or a letter from a medical practitioner must be provided.

To confidently navigate complex claims like the Disability Tax Credit and medical expense deductions, tax professionals need a strong foundation in personal tax rules and real-world application. The Income Tax Fundamentals Certificate from Knowledge Bureau is the ideal next step. This program equips you with the essential skills to accurately prepare tax returns, identify overlooked credits, and provide high-value advice to individuals and families—especially those managing medical and disability-related expenses. Whether you're new to tax or looking to sharpen your expertise, this certificate builds the confidence and competence you need to better serve your clients and grow your practice.

Plus, Ruth Horst, author of this article, will also be speaking at the May 21 CE Summit. Don’t miss the chance to hear her insights and expertise live during this premier professional development event.