Plain meaning
A non-refundable tax credit for individuals with a severe and prolonged impairment in physical or mental functions, subject to CRA approval.
Also called
DTC
Key points
- Eligibility generally requires certification by an eligible medical practitioner and approval by CRA.
- The credit is non-refundable, so it usually reduces tax otherwise payable rather than creating a refund by itself.
- Unused amounts may be transferred to a supporting family member in some circumstances.
- DTC eligibility can be a gateway to the Registered Disability Savings Plan and other disability-related supports.
- Application-process changes can matter because paperwork and certification rules affect access in practice.
Why it comes up
DTC eligibility can reduce tax and can also open access to related supports such as the RDSP, Canada Disability Benefit, and disability-related family benefits.