Disability Tax Credit

Written by Heather Bowie, CPA, CA on Mar. 16, 2018

You may qualify for the disability tax credit and not even realize it.  If so, you could collect as much as $2,500 a year in tax savings!!!

You do not need to be in a wheelchair to be eligible for the disability tax credit. If someone isn’t able to walk the length of a football field unassisted they are likely eligible for the credit. Anyone who can’t fill out forms because of bad vision or can’t articulate their thoughts will also likely qualify. Anyone who needs life sustaining therapy to support a vital function, such as dialysis, can also apply.

Often the disability tax credit can be applied retroactively up to ten years

Anyone who has problems with the following may be eligible for the disability tax credit:

  • seeing;
  • speaking,
  • hearing,
  • walking,
  • bowel or bladder functions,
  • feeding,
  • dressing or
  • performing mental functions necessary for everyday life

People with long-term disabilities can save more than $2,500 a year in taxes. Often this credit can be applied retroactively up to ten years. If a dependant that you assist is disabled, you may be able to claim the unused amount of their disability tax credit. In addition, if you have a child under the age of eighteen that is disabled, a supplement to the disability tax credit is also available. If you have a parent or grandparent that is living in a home you maintain, any unused credit may be transferrable to you.

People with long-term disabilities can save more than $2,500 a year in taxes

In order to receive the disability tax credit a T2201 form must be completed and submitted to CRA. It’s now even easier to file the form T2201 as CRA is now accepting the form electronically.

Who can sign the form:

  • Doctors,
  • Optometrists,
  • Audiologists,
  • Occupational therapists,
  • Psychiatrists,
  • Speech language pathologists, and
  • other medical professionals

The doctor only has to sign for one of the conditions in order for you to qualify for the disability tax credit. To be considered, the impairment must have lasted, or be expected to last for at least 12 months.

If you think you or one of your family members may qualify for the disability tax credit, please contact us today at 780-466-6204 or email us by clicking here.

Thanks to Jean Dubois of KWB Chartered Accountants for providing much of this content

Here is a list of some of the medical conditions that may entitle you to the disability tax credit (DTC):

Asperger Syndrome
Bladder Disorder
Borderline Personality Disorder (BDP)
Bowel Disorder
Brain Tumour
Cerebral Palsy (CP)
Charcot-Marie-Tooth Disease
Chronic Pain
Chronic Obstructive Pulmonary (COPD)
Coronary Artery Disease
Cri du chat Syndrome
Crohn’s Disease
Cystic Fibrosis (CF)
Degenerative Disc Disease (DDD)
Developmental Delay
Down Syndrome
Ehlers-Danlos Syndrome
Fetal Alcohol Syndrome (FAS)
Fragile X Syndrome
Global Developmental Delay
Hearing Impairment
Herniated Disc
Hip Injury or Pain
Huntington’s Disease
Irritable Bowel Syndrome (IBS)
Juvenile Arthritis
Learning Disability
Lou Gehrig’s (ALS)
Mental Illness
Motor Vehicle Accident
Multiple Sclerosis (MS)
Obsessive Compulsive (OCD)
Osteoarthritis (OA)
Panic Disorder
Parkinson’s Disease (PD)
Personality Disorder
Physical Impairment
Post Traumatic Stress (PTSD)
Psoriatic Arthritis
Rheumatoid Arthritis (RA)

This list does not include every medical condition that may qualify for assistance.

Heather Bowie, CPA, CA

Heather Bowie, CPA, CA


Heather completed her Bachelor of Commerce with an accounting major at the University of Alberta. She articled with a mid-sized national firm, during which time she received her CA designation.

Over the years, Heather has achieved a variety of work experience including as an online facilitator for the CA program, senior accountant in industry, and as a practice reviewer for CPA Alberta.

With KWB, Heather is a Manager and also leads the development of our advisory practice, Onsight Advisory.

Away from work, Heather and her husband own an HVAC company in Sherwood Park allowing her to understand business from both the client and the accountant perspective.

Heather has an amazing husband and two teen daughters who are growing way too fast for her liking. In her spare time, Heather enjoys attending her girls’ sporting events and dance performances, keeping active, and playing board games.

Heather's Contact Information

Other Posts by Heather

May 9 2017
Tax Deductions

To make sure you are claiming all the tax deductions that you should be, read about the 7 most commonly overlooked tax deductions.

Nov 12 2019
Travel Expenses

Travel expenses include food, beverage, lodging and transportation (such as airplane, train, bus, etc.) expenses but not motor vehicle expenses. You can deduct travelling expenses on your personal tax return as long as you meet all of the following conditions: You were normally required to work away from your employer's place of

Jul 22 2014
Family Caregiver Tax Credit

For 2014, if you have a dependent that you claim under one of the following: Spousal amount (line 303) Equivalent to spouse amount (line 305) The child amount (line 367) The caregiver amount (line 315) The infirm dependant (line 306) And that person is defined as infirmed with an impairment in physical or mental functions

Dec 8 2015
Tax Instalments

You may not be aware that you or your business are required to remit quarterly or monthly tax instalments to CRA.  And it is likely that if the instalments are not made, you will be charged interest and penalties Goods and services tax instalments You are required to pay GST instalments if your net

Nov 9 2016
Leasehold Improvements To Your Home Office

Have you made some renovations or leasehold improvements to your home office?  You should be claiming any “repairs” in the year that they occur, but you have some options when it comes to claiming the amortization from leasehold improvements to your home office. However be aware that this option may mean losing your homes

Apr 17 2018
Northern Residents Deduction

Depending on the location of your permanent home, you may qualify for the Northern Residents Deduction on your personal income tax return. The steps to determine if you qualify for the NRD are as follows: Step 1 - Your permanent resident location There are two levels of locations that qualify for the Northern Residents Deduction:

Jun 13 2017
Gluten Free Food

If you have celiac disease you are able to claim the incremental costs of the gluten free food as a medical expense. In order to claim the expense you need to track the gluten free food during the year and keep the receipts to show that the expenses were incurred. An app called celitax.ca

Jun 17 2020
CEBA – Canada Emergency Business Account – Update June 2020

It was announced today that the government will start accepting new applications under the expanded eligibility guidelines for the Canada Emergency Business Account (CEBA) starting on Friday (19 June 2020).  The government has expanded program eligibility to include sole proprietors and farmers. Businesses with total employment expenses in 2019 of $20,000 or

Nov 17 2020
4 Reasons Why Your HVAC Business Needs Jobber

At KWB, we are passionate about QuickBooks Online (QBO) and the apps that integrate with it.  We are equally passionate about treating you as a business partner by sharing valuable information, advice, and technology If you own an HVAC business, we know from experience that QBO and the Jobber app will help you

Nov 24 2020
Canada Emergency Rent Subsidy (CERS) Brings Relief to Small Business Owners

The new rent subsidy for businesses will bring welcome relief for many of our business clients affected by COVID-19. Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to COVID-19 may be eligible for a subsidy to cover part of their commercial rent or property expenses.  Claims can