The guide is available in both French and English and can be viewed online or easily downloaded:
The post Tax-related benefits of the Disability Tax Credit appeared first on RDSP.
]]>If you or someone you know has the DTC, there are lots of other tax-related disability supports that you or they may be eligible for. Please note that you will need to file your taxes to access most of these supports; information on how to get free assistance with tax filing is available here and at the end of this article.
While the benefits of the DTC are all designed in recognition of the higher costs that people with disabilities face, different supports serve different functions. Some benefits help reduce taxes owing. Others provide individuals with higher tax returns. Some can even come in the form of financial payments.
Below, we discuss some key disability supports that may benefit you if you have the DTC and file your taxes:
For workers
People with a low income who get most of their money from employment may also receive the Canada Workers Benefit—a refundable tax credit that can increase your yearly tax return. If you have the DTC, you can get up to $737 as a Disability Supplement on top of the CWB amount.
For caregivers
For those with added health-related expenses
For homeowners
For those with trusts and RDSPs
In addition to the benefits outlined above, it is anticipated that the DTC will play a critical role in determining eligibility for the proposed Canada Disability Benefit. Now, more than ever, it is important to ensure that everyone who is eligible can access the DTC.
Plan Institute and our partners in the Access RDSP program, Disability Alliance BC (DABC) and the BC Aboriginal Network on Disability Society (BCANDS), can provide support to help people access the DTC and the RDSP. For assistance, email Access RDSP at info@rdsp.com or call 1-844-311-7526.
We know that filing taxes can be complicated. If you are in need of support with tax filing, call Tax AID DABC at 236-417-1717, email taxaid@disabilityalliancebc.org or schedule an appointment online. DABC’s offices are located at #1450-605 Robson St. Vancouver BC, V6B 5J3.
The post Tax-related benefits of the Disability Tax Credit appeared first on RDSP.
]]>The post The RDSP for Beginners appeared first on RDSP.
]]>
The Registered Disability Savings Plan (RDSP) is a Canada-wide registered matched savings plan specific for people with disabilities to help them save money for their future. By matched, we mean that for every $1 you put in the government will match it with up to $3! That can amount to a lot of free money.
Why is this so important to us? As of 2017, only about 38.9% of eligible British Columbians have opened an RDSP. This means that 61.1% of people who may benefit from this fantastic financial opportunity are not yet doing so. This doesn’t include the number of people who may qualify for the RDSP and have not yet received their Disability Tax Credit. That’s a lot of people missing out on free money!
Read on for some basic facts on the RDSP, and the free services we offer through our non-profit program, Access RDSP.
Why would I choose an RDSP over other savings accounts?
The RDSP allows you to contribute up to $200,000 without affecting your disability benefits, even when you start withdrawing the money. You can also receive up to $90,000 from the government through the Canada Disability Savings Bond and the Canada Disability Savings Grant.
I don’t have any extra income – what’s the point of opening up a savings account?
The RDSP actually benefits those with low incomes the most because you can receive up to $20,000 of government contributions without putting any money in yourself. This is through the Canada Disability Savings Bond.
Any money you do put in can be matched by the government up to $3 for every $1 you put in through the Canada Disability Savings Grant.
What do you mean “up to $3 for every $1 you put in”?
If the beneficiary’s income is $100,392 or less:
If the beneficiary’s income is above $100,392:
How old does somebody have to be to open up an RDSP?
You can have an RDSP open for anybody who has the Disability Tax Credit and is under the age of 59. It is better to open up an RDSP account as soon as possible so that the beneficiary can maximize the government and personal contributions, and have increased financial gain from compounded interest, and be able to withdraw funds from the account at a younger age.
You are also no longer eligible to receive government contributions after the age of 49, so it’s better to start the process as soon as you can!
What do I need to open an RDSP?
*Note: you will only be able to receive government contributions if you have filed income taxes for the last two years. If the beneficiary is a child, we recommend that you start filing their income taxes in the year they turn 17. This is because when they are in the year in which they turn 19 years old, the grant and bond eligibility is based on their family income only, not their legal guardians.
What is the Disability Tax Credit?
This is a non-refundable tax credit that people with severe and prolonged disabilities may be eligible for. Once eligible, the person with the disability who qualifies, or one of their caregivers may claim the tax credit when doing their income taxes to reduce how much money needs to be paid to the Canada Revenue Agency (CRA). You must be eligible for the DTC in order to open an RDSP.
How do I get the Disability Tax Credit?
You and your medical professional must fill out form T2201 and submit it to the CRA. Once received, it can take a minimum of 3-4 months to hear back. This Disability Tax Credit Tool from Disability Alliance BC is designed to give your healthcare provider the information they need to fill out that form.
You can call Plan Institute’s Disability Planning Helpline to receive free one-on-one support with the DTC: 1-844-311-7526
We are here to help you learn about, qualify and open an RDSP. Through our non-profit program Access RDSP, we offer the following support:
If you’re not sure where to start, feel free to give us a call at 604-439-9566 and we’ll be happy to assist you!
The post The RDSP for Beginners appeared first on RDSP.
]]>The post RDSP Awareness Month Event – Victoria appeared first on RDSP.
]]>The post RDSP Awareness Month Event – Victoria appeared first on RDSP.
]]>The post Changes to Disability Tax Credit Eligibility Take Effect Today appeared first on RDSP.
]]>The major changes to eligibility include:
For those whose applications were denied after January 1, 2021, under the mental functions or life-sustaining therapy, do not need to reapply. If you applied on or after January 1, 2021, to June 23, 2022, your application will be reviewed based on the updated criteria.
If you know someone who may be eligible and has not previously applied for the DTC, please let them know about the new changes. The DTC has many benefits, (such as the RDSP!), and our hope is that more qualified people in Canada will be able to access it.
*Medical practitioners who are Interested in learning more about the legislative changes can join the CRA for a webinar on September 14, 2022. Please click here to register.
For more information on the Disability Tax Credit and these changes, click here.
The post Changes to Disability Tax Credit Eligibility Take Effect Today appeared first on RDSP.
]]>The post New Financial Consumer Protection Framework appeared first on RDSP.
]]>As of June 30, 2022, financial institutions across Canada are required to adhere to new regulations intended to protect Canadians in their dealings with banks. The Framework is federally legislated and is overseen by the Financial Consumer Agency of Canada (FCAC). It applies to banks, authorized foreign banks and federal credit unions across the country.
Below, we have outlined some of the key changes introduced by the new Framework, which are designed to protect your rights when dealing with your bank or credit union.
Electronic alerts
You may already have noticed that you’re getting new alerts from your bank about your accounts. These alerts are designed to help you manage your accounts and avoid certain fees.
The alerts will let you know when your bank account balance or available credit falls below a certain amount. They will tell you what charges or fees may apply, and how to avoid them.
The alerts may be sent via email, text or app notification. They will be sent automatically, but you can change or cancel them.
Responsible sales of products and services
Have you ever signed up for a financial product that you don’t really want or understand? Under the new Framework, your bank must provide you with clear and accurate information about any product or service they wish to sell you.
For example, your bank must:
Make sure you ask as many questions as possible when buying a new product or service. You can also take some time to think about it or look around before signing an agreement.
Complaint handling
If you need to make a complaint about your bank, the new Framework should also make it easier to do so.
Your bank now must:
These measures will help get your issues resolved in a more timely and effective way. If your bank is unable to resolve your complaint, you can also escalate it to an external complaints body (ECB).
You can learn more about the new Framework by visiting: www.canada.ca/FCAC
The post New Financial Consumer Protection Framework appeared first on RDSP.
]]>The post Access RDSP receives continued funding appeared first on RDSP.
]]>Here is the press release from the Ministry of Social Development and Poverty Reduction:
Hundreds of thousands of people living with disabilities will be supported with continued access to the Registered Disability Savings Plan (RDSP).
“We should all feel confident in planning for our future,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “This investment supports organizations that work tirelessly in outreach and education, making sure people with disabilities have the tools and resources they need to make sound financial decisions.”
With $1.35 million in provincial funding over three years, the Access RDSP partnership between the BC Aboriginal Network on Disability Society (BCANDS), Disability Alliance BC (DABC) and Plan Institute, can provide eligible people with disabilities with the information and support they need to access the RDSP. The Vancouver Foundation will administer the funding.
For six years, the Access RDSP initiative has worked to address barriers to participation in the RDSP and Disability Tax Credit (DTC) by offering one-to-one support and workshops in communities throughout B.C. It has reached more thean 6,000 families and is raising awareness of available resources. Free online tools, such as the RDSP calculator, the DTC eligibility tool and the RDSP helpline, help people with disabilities benefit from federal and provincial disability-related programs.
Government is committed to improving the lives of people living with disabilities throughout B.C. and supporting those organizations that are helping to build a more inclusive and accessible future for everyone.
Quotes:
Dan Coulter, Parliamentary Secretary for Accessibility –
“Building a barrier-free B.C. means integrating accessibility into every aspect of our lives – and that includes financial literacy. We know that people with disabilities have been disproportionately affected by the past two years, which means it’s more important than ever to have accessible and easy-to-use resources to make financial decisions.”
Neil Belanger, chief executive officer, BC Aboriginal Network on Disability Society –
“Assisting individuals and families in accessing the Registered Disability Saving Plan has been a highlight for our organization. With the support of the Ministry of Social Development and Poverty Reduction, the RDSP Action Group, and our RDSP program partners, we have seen first-hand the positive impact on individuals with disabilities and their families as they begin the journey to greater financial security through opening an RDSP.”
Stephanie Debisschop, executive director, Plan Institute –
“Plan Institute is excited to continue the important work of reducing disability poverty through access to the RDSP. The support of the Ministry of Social Development and Poverty Reduction allows us to effectively collaborate within our communities, and to provide meaningful support in reducing the barriers that are experienced by far too many British Columbians.”
Helaine Boyd, executive director, Disability Alliance BC –
“The Access RDSP program supports people with disabilities in applying for and receiving disability-related benefits, including the Disability Tax Credit and getting set up with an RSDP. By assisting people in these application processes, it improved access for people with disabilities in receiving benefits that they are entitled to, resulting in greater financial security and planning for the future.”
Disability Alliance BC client –
“I am ever so grateful for the professional help I received by DABC. We sorted out my disability tax credit, of which I was physically unable to do on my own. This service is invaluable. The benefits available are hard to access without the knowledge and dedication of the advocates in the RDSP program, as the process is precise and complex, which means those with disabilities may not have the stamina to make their way through the applications.”
Quick Facts:
Learn More:
The online RDSP calculator can be found here: https://www.rdsp.com/calculator/
The online Disability Tax Credit tool can be found here: https://disabilityalliancebc.org/dtc-app/
Information about BCANDS Indigenous Registered Disability Savings Plan Navigation Services is available on their website: http://www.bcands.bc.ca/access-rdsp-change-your-tomorrow-today-bcands-indigenous-registered-disability-savings-plan-navigation-services/
DABC’s website has more information about Access RDSP: https://disabilityalliancebc.org/access-rdsp/
Learn more about the Plan Institute’s Access RDSP services: https://planinstitute.ca/resources/access-rdsp/
Accessibility in B.C.: gov.bc.ca/accessibility
See a short video promoting AccessAbility Week: https://youtu.be/A4AXJ4ZE7yg
The post Access RDSP receives continued funding appeared first on RDSP.
]]>The post New Resource: Guide to the DTC and RDSP for Newcomers with Disabilities appeared first on RDSP.
]]>Disability Alliance BC, Plan Institute, and the Ontario Council of Agencies Serving Immigrants have developed a new guide intended to help frontline workers in settlement agencies and advocates introduce newcomers with disabilities to both the Disability Tax Credit and the Registered Disability Saving Plan.
This guide covers the details of the programs, their benefits, what is needed to be eligible, and will guide them through the process when they’re ready to apply.
The guide is available in both French and English and can be viewed online or easily downloaded:
The post New Resource: Guide to the DTC and RDSP for Newcomers with Disabilities appeared first on RDSP.
]]>The post Taxes and the RDSP appeared first on RDSP.
]]>
Unlike the RRSP, RDSP contributions do not count as a deduction off your income taxes. This is a good thing because it means that all the money you put in to your RDSP is considered after-tax dollars. Those personal contributions will never be taxed when you take money out.
Your RDSP will however include up to four types of contributions. These are your personal contributions, the government contributions (grants and bonds), investment income, and proceeds from a rolled over amount. The money in your RDSP that is made up of the grant and bond amounts, investment income, and any proceeds from a rolled over amount are taxable, but only if you withdraw a certain amount.
Withdrawals may be subject to tax if the withdrawal amount is more than the total of two non-refundable tax credits: the basic personal amount (BPA) and the disability amount (DA).
The federal maximum amount for 2022 is $14,398 for the BPA plus $8,870 for the DA. This means that if the taxable portion of your withdrawals in 2022 are equal to or below $23,268 there will be no tax withheld at the source.
If there is tax that is going to be withheld, the RDSP issuer (your financial institution) will automatically make a withholding for tax before issuing the payment. This is not the same as paying the tax. Instead, the financial institution will report both the gross taxable amount and the withholdings to the Canada Revenue Agency (CRA) and to the beneficiary through a tax form.
One way to avoid this is for the holder to have authorized access to the account of the beneficiary at the CRA. If the taxable amount withheld was too high, the beneficiary will receive the over-taxed amount back after filing that year’s income tax return. If the holder wishes to get an idea of what the taxable portion would be before making a withdrawal, they could try contacting Employment and Social Development Canada (ESDC), the government branch that oversees the RDSP and provides the grants and bonds. You can reach them via phone at 1-866-204-0357 or 1-866-754-2674, email at rdsp-reei@hrsdc-rhdcc.gc.ca, TTY at 1-800-926-9105, and you can request a call back here: https://srv144.services.gc.ca/cgi-bin/emailform/index.aspx?GoCTemplateCulture=en-CA§ion=cdsp
When you call, make sure you have:
Providing this information will allow ESDC to look into the account and provide specific information regarding your RDSP. Alternatively, our financial institution would also likely be able to provide you with this information.
Click here for more information on taxation of withdrawals.
If you have any questions or require assistance, please call our RDSP and Disability Planning Helpline at 1-844-311-7526 or email info@rdsp.com
The post Taxes and the RDSP appeared first on RDSP.
]]>The post The RDSP: Rosie’s Story appeared first on RDSP.
]]>
For RDSP awareness month, we asked someone with an RDSP to share their experience. This is what they had to say.
I was a university graduate who was working as a full-time professional when I developed a disability that caused me to rethink my entire life and career plan. When my medical conditions first came up, I fell into a deep depression. I knew that my life wouldn’t be the same moving forwards and I had to grieve the life I thought I was going to have. It took a long time before I was eventually able to heal and be able to process what I had gone through.
Early on when I developed my disability, I learned about the possible disability benefits available to me, including the Disability Tax Credit (DTC). The DTC is a tax credit available through the Canada Revenue Agency (CRA) that I qualified for as somebody with a significant and long-term disability. After I was approved for the DTC, I learned that having this credit opened more doors for me. Other than the tax benefits that were now available to me I was told that I could also open a Registered Disability Savings Plan (RDSP).
I had never heard of the RDSP up until this point. I had already been working with a financial professional, Monisha*, a friend since elementary school. When I told Monisha about the RDSP, it was also news to her too! The RDSP was created in December of 2008 but I only learned about it when I developed my disability in 2015.
Monisha knows I have high standards for financial planning so she worked with me to learn more about the RDSP and how I could make the best use of the plan. I knew I would be taking a serious pay cut after my ability to work was reduced because of my disability, and I was scared for the future. Having an RDSP has been mostly positive for me; I know that even with reduced income, no alternative pension plan, and a possibility that my health will get worse over time, I am setting myself up for a financially healthy future.
Here are some things I learned about the RDSP:
I often feel very uncertain about the future. But knowing that my savings will be protected if I need to rely on disability support programs in the future, has given me incredible peace of mind.
For me, learning about the RDSP was easy. All of the information is available online and I had Monisha to work with me on my financial goals. I know that for many folks, it’s a lot more difficult to get started and go through the process. I would encourage anybody who has a disability or knows somebody who does to learn more about the RDSP. People are a wealth of knowledge and I wouldn’t be where I am today without the support of others. It’s so important to think about your future and it’s okay to take it one step at a time. You can do this.
If you would like to know more about the RDSP and how you or somebody you know may benefit from this program, please contact our free Disability Planning Helpline service at 1-844-311-7526 or info@rdsp.com. Rosie would like to help and encourage others with their RDSP journey. If you would like to contact Rosie directly, please contact Liss Cairns, our Project Coordinator, at lcairns@planinstitute.ca so that they can make the connection.
*Names have been changed to protect privacy
**Please note that all views and opinions expressed by contributors should be recognized as theirs alone, and do not necessarily reflect the official policies or position of Plan Institute**
The post The RDSP: Rosie’s Story appeared first on RDSP.
]]>The post Why Connecting Patients with the DTC & RDSP Matters: A Physician’s Perspective appeared first on RDSP.
]]>
A 48 year old with multiple sclerosis, a 24 year old with leukemia, an 18 year old with Down’s Syndrome, a 35 year old with recurrent bouts of severe depression. These are all patients of mine, each one with a unique story, each one working hard to improve their health and standard of living despite their disability. And each one has a Registered Disability Savings Plan (RDSP).
I am a family physician, not a financial advisor. My training prepared me to deal with MI, RA, MDD and CRF – not EI, CPP, DTC or RDSP. But years of working with people who experience disability, and most of whom live in poverty and without secure housing, have convinced me that I must address their social situations directly to improve their health. Conversations about “treating poverty” through accessing income supports have expanded to the inclusion of a Social Determinants of Health Committee and income security specialists in my family health team.
At the foundation of my work on addressing poverty, however, lies a basic intervention: connect my patients with the income support systems that will improve their income security, and that will prevent them from falling into deeper poverty. The disability income security system in Canada is large and complex, but there are certain key benefits that require a physician’s input to access. These include provincial social assistance disability support programs, Canada Pension Plan-Disability, and the Disability Tax Credit (DTC).
We see applications for these programs on a regular basis. What we often don’t recognize, however, are the programs people with confirmed disabilities qualify for that can have a major impact on income and life security. One of the most important, and under-accessed, of these programs is the RDSP. Like an RRSP, but for people with disabilities, this program allows individuals living with disabilities to save money for the future and to access heavy government subsidies. Any individual who qualifies for the DTC can open a RDSP.
While some outreach has been done by government and disability advocacy organizations, many people living with disabilities have no idea RDSPs exist. This is where front-line health providers can play a huge role in guiding their patients to this program. First, complete an application for the DTC. Once qualified, advise patients to open a RDSP. Patients with very low incomes can access large grants to build their savings. People who are able to contribute their own funds can access up to a 300% match in government funds.
We often find ourselves caught up in the day-to-day struggles of our patients who live with disabilities. But we can also enable our patients to look to and plan for their futures. Approaching middle and older age with a disability and no financial security will decrease health and wellbeing. Disability income support programs, and especially forward-looking, subsidized savings programs like the RDSP, offer stress relief, security, and ultimately increased hope for a comfortable future.
Gary Bloch is a family physician with St. Michael’s Hospital and Inner City Health Associates, and an Associate Professor with the University of Toronto Faculty of Medicine.
Gary created the Poverty Tool with the Centre of Effective Practice, which is designed to guide primary health care providers in income interventions: www.cep.health/poverty
**Please note that all views and opinions expressed by contributors should be recognized as theirs alone, and do not necessarily reflect the official policies or position of Plan Institute**
The post Why Connecting Patients with the DTC & RDSP Matters: A Physician’s Perspective appeared first on RDSP.
]]>