At Access RDSP, we hear from a lot of people that they are unsure if they qualify for the Disability Tax Credit (DTC) and Registered Disability Savings Plan (RDSP). To celebrate RDSP Awareness Month, we’ve prepared this post which we hope will clarify some of the eligibility requirements.
What is the DTC?
The Disability Tax Credit (DTC) is a Canada-wide income tax credit that can help reduce the income tax that you or someone who supports you owes, in recognition of your disability. The DTC is non-refundable—this means you will pay less tax but you do not get any money back. You claim the credit when you file your taxes.
The DTC is a gateway to a lot of other benefits such as the Child Disability Benefit, the Canada Worker’s Benefit, and more, and is a prerequisite to opening a Registered Disability Savings Plan (RDSP).
Who qualifies?
There is no age requirement to apply for the DTC. To qualify, your disability must be expected to continue for at least 12 months, and you must fall into any one of the ten categories below:
You are either:
a) blind (or legally blind), or,
b) you are markedly restricted in an activity of daily life. This means you are unable or take significantly longer to perform at least one of these functions (substantially all of the time):
- Speaking
- Hearing
- Walking
- Eliminating (bowel or bladder functions)
- Feeding
- Dressing
- Mental functions necessary for everyday life
Even if you are not markedly restricted in one of these areas you can still qualify if you:
c) Are restricted in two or more of the activities listed above such that you are markedly restricted overall, or,
d) Require life-sustaining therapy at least three times per week, for an average of 14 hours per week.
Applying for the DTC
If you think you may qualify for the DTC, speak to your medical practitioner about how you can fill out your application form (form T2201). https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t2201/t2201-fill-18e.pdf
We’ve created a web tool that can help give them the information they need to fill out the form; https://disabilityalliancebc.org/dtc-app/
If you need further assistance, you can contact Access RDSP’s toll-free helpline at 1-844-311-7526 or email helpline@planinstitute.ca
The RDSP
Unlike the DTC, there are age requirements for the RDSP.
To qualify for the RDSP you must:
- Be up to date on filing your income taxes,
- Be able to provide your SIN number, and,
- Be under 60 years of age
If you open an RSDP, you may be eligible to receive government grants and bonds up to a lifetime maximum of $90,000 until the calendar year you turn 49.
If you would like to know how the DTC/RDSP may benefit you if you are over 50, please visit our guide: https://bit.ly/33NnZrs.
For more information about DTC and RDSP eligibility and RDSP age requirements:
- Help Sheet 14: The Disability Tax Credit: http://disabilityalliancebc.org/hs14/
- Help Sheet 15: The Registered Disability Savings Plan: http://disabilityalliancebc.org/hs15/
- RDSP.com: https://www.rdsp.com/how-do-i-qualify/
Access RDSP offers one-to-one support with the DTC and RDSP.
Contact info: https://www.rdsp.com/supports-and-services/