Once a person qualifies for the Disability Tax Credit (which is worth $1,286 as a federal credit in 2020, plus a provincial credit), here are some other benefits that are available:
- $600 non-taxable federal government payment to help with the effects of COVID-19, to be paid this fall
- certain disability-related employment benefits (transportation, parking and an attendant) are non-taxable
- deductions are allowed for a wide range of “disability supports” required to enable the person to work, study or carry on grant-funded research
- medical expense credit for nursing home care, attendant, group home care or certain therapy
- 15% Home Accessibility Tax Credit, for qualifying expenditures
- $750 Disability Home Purchase Credit
- higher Canada Workers Benefit (formerly called the Working Income Tax Benefit)
- eligibility for a Registered Disability Savings Plan, along with the government-provided Canada Disability Savings Grant and Canada Disability Savings Bond
- enhanced entitlement to a Registered Education Savings Plan
- enhanced Home Buyer’s Plan (using RRSP to help fund a home purchase)
- limited exclusions from the Tax on Split Income (which taxes family members at a high rate, typically where income-splitting is done through a corporation)
- reduced withholdings if using the Lifelong Learning Plan (using RRSP to help fund education)
- a “qualified disability trust” for the person can be taxed at low marginal rates not available to other trusts
- a trust for the person can make a “preferred-beneficiary election” to allocate income to the person for tax purposes without paying it out
- refund of 1.5¢ per litre of gasoline purchased, under the Federal Excise Gasoline Tax Refund Program (CRA Form XE8), for anyone with “an impairment of mobility to such a degree that using public transportation would be hazardous”.
Where the taxpayer’s child has such a disability, the following are some of the available benefits, in additional to those above where they can apply to a child (e.g., medical expenses):
- the Disability Tax Credit can be claimed by the taxpayer for the child
- higher Canada Child Benefit payments (formerly called the Child Tax Benefit)
- higher child-care expense deduction limits