Transcript PLANNING FOR A SECURE FUTURE MukiBaum Treatment …

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2010, Community Law School
(Sarnia-Lambton) Inc.
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2010, Community Law School
(Sarnia-Lambton) Inc.
The Disability Tax Credit Certificate &
Related Benefits under the
Income Tax Act
ARCH DISABILITY LAW CENTRE
May 4th, 2011
Brendon D. Pooran
416-617-6805
[email protected]
www.pooranlaw.com
About our presenter…
Brendon Pooran has been involved with disability organizations as a
member, volunteer, employee or director for most of his life. His practice,
which is primarily built around disability issues, is inspired by the
challenges people with disabilities face throughout their lives. He created
Pooranlaw to provide a voice for this community and to serve as a
resource for accessibility issues throughout Ontario.
Brendon teaches Critical Disability Law at York University, is a lawyer
member on the Consent and Capacity Board and sits on the Board of
Directors at the Canadian Abilities Foundation, Community Living York
South, MukiBaum Treatment Centres and PLAN Toronto.
DISCLAIMER
The information provided in this presentation is
not legal advice and does not create a solicitorclient relationship. Pooranlaw provides such
information for general information purposes
only. While we attempt to convey current and
accurate information, we make no
representations or warranties of any kind,
express or implied, about the completeness,
currency, accuracy, reliability, suitability or
availability of the information. Any reliance you
place on such information is therefore strictly at
your own risk.
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1. What is the Disability Tax Credit Certificate? (Form T2201)?
2. Who can complete the DTCC?
3. Who qualifies for the DTCC?
AGENDA
4. Can I appeal CRA’s decision?
5. What benefits are available with an approved DTCC?
a.
The Disability Amount
b.
Transferring the Disability Amount to a Dependant
c.
Child Disability Benefit
d.
Working Income Tax Benefit Disability Supplement
e.
Disability Supports Deduction
f.
Eligible Medical Expenses
g.
Registered Disability Savings Plan
6. What other benefits are available under the Income Tax Act?
a.
Caregiver Amount
b.
Amount for Infirm Dependants
c.
Homebuyer’s Amount
d.
HST Information
7. Can I File Adjustments to Prior Years’ Tax Returns?
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What is the DTCC?
• Disability Tax Credit Certificate
• Canada Revenue Agency - Form T2201
http://www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html
• Qualifies individuals for benefits under
the Income Tax Act
• Confirms that individual has “severe or
prolonged impairment in physical or
mental functions”
• See self-assessment form
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Who Can Complete the DTCC?
Part A
• completed by person with disability or
representative
• Authorize representative by completing Form
T1013  Authorizing or Cancelling a
Representative
Part B
• Completed by a qualified practitioner
• Medical doctor, optometrist, occupational
therapist, audiologist, physiotherapist,
psychologist, speech-language pathologist
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Who Qualifies for the DTCC?
1. The individual has:
• an impairment in physical or mental
functions
• lasting, or expecting to last, at least 12
months and
• is blind
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Who Qualifies for the DTCC?
2. The individual has:
• an impairment in physical or mental
functions
• lasting, or expecting to last, at least 12
months and
• is receiving life-sustaining therapy
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Who Qualifies for the DTCC?
Life-sustaining therapy
• Supports vital function
• May alleviate symptoms
• At least 3 times per week / avg 14 hours
per week
• Yes  chest physiotherapy, dialysis,
adjustment of medication on daily basis
• No  implanted devices (pacemaker),
special programs of diet, exercise, hygiene
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Who Qualifies for the DTCC?
3. The individual has:
• an impairment in physical or mental
functions
• lasting, or expecting to last, at least 12
months and
• the effect of the impairment causes the
individual to be markedly restricted in
one of the activities of daily living
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Who Qualifies for the DTCC?
Activities of Daily Living
• Speaking
• Feeding
• Dressing
• Walking
• Mental functions necessary for everyday
life
• Elimination (bowel or bladder functions)
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Who Qualifies for the DTCC?
Markedly Restricted
• All or substantially all of the time
• unable or takes an inordinate amount of
time
• to perform one or more of the ADLs
• even with therapy (other than lifesustaining) and
• use of appropriate devices & medication
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Who Qualifies for the DTCC?
4. In 2005 or later, the individual has:
• an impairment in physical or mental functions
• lasting, or expecting to last, at least 12 months
• because of the impairment, the individual is
significantly restricted in two or more of the
ADLs
• Significant restrictions exist together all or
substantially all of the time
• Cumulative effect = markedly restricted in
single ADL
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Who Qualifies for the DTCC?
5. In 2005 or later, the individual has:
• an impairment in physical or mental functions
• lasting, or expecting to last, at least 12 months
• because of the impairment, is significantly
restricted in vision and at least one ADL
• Significant restrictions exist together all or
substantially all of the time
• Cumulative effect = markedly restricted in
single ADL
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Who Qualifies for the DTCC?
Significantly Restricted
• Do not quite meet criteria for markedly
restricted
• Ability to perform ADL is substantially
restricted
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Can I Appeal CRA’s Decision?
• Approved
– Letter sent by CRA confirming approval
– Includes “onset of impairment” date
• Denied
– Letter explaining decision
– Can send additional information
– Formal objection to appeal decision (not based
on letter but on notice of (re)assessment)
– File by later of:
• 1 year after due date for return in question or
• 90 days after date of notice of (re)assessment
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Benefits Associated with
the Disability Tax Credit
Certificate
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The Disability Amount
• Commonly referred to as the Disability
Tax Credit
• Non-refundable tax credit  can reduce
taxable income to zero
• Amount of credit (2011)
– $7,341 for individuals over 18 (tax credit
amount of $1,101)
– $4,282 for individuals under 18 (tax credit
amount of $642)
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Transferring the Disability
Amount from a Dependant
• Dependant must be a resident of Canada
• Dependent on you for some or all of the basic
necessities of life (food, shelter, clothing)
• Dependant must have been claimed as “eligible
dependant” on line 305 OR
• Dependant is child, grandchild, parent,
grandparent, brother, sister, aunt, uncle, niece
nephew and claimed as “amount for infirm
dependants age 18 years or older” (line 306) or
“Caregiver amount” (line 315)
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Child Disability Benefit
• Eligibility Criteria (2011)
– DTCC
– Canada Child Tax Benefit
• Amount of credit (2011)
– Up to $205.83 per month for each child
eligible for the Disability Amount
– Amount starts being reduced when family net
income is more than $42,000
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WITB Disability Supplement
• Eligibility Criteria (2011)
– DTCC
– WITB (refundable tax credit for eligible low
income families and individuals)
– 19 years or older
– Working income over $1,150
– Income up to $17,004 single; $26,218 married)
• Amount of credit (2011)
– Up to $944 single + $472 supplement
– Up to $1,714 family + $472 supplement
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Disability Supports Deduction
• Attendant care services can be claimed as
Disability Supports Deduction
• Cannot claim amounts claimed as medical
expenses
• Full-time services can be claimed if person
qualifies for DTCC or medical practitioners
certifies impairment as indefinite
• Part-time services only if person qualifies for
DTCC
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Eligible Medical Expenses
• Can claim certain medical expenses as
deductions
• See list:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwxpns-eng.html
• DTCC serves as qualification criterion for
certain expenses
• E.g. the cost of prescribed therapy
supervised by a medical doctor,
psychologist or occupational therapist
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Registered Disability Savings Plan
• Eligibility Criteria
– DTCC
– Under the age of 60
• Description
– Long-term savings plan designed for persons with
disabilities
– Beneficiaries entitled to up to $4,500 in government
contributions per year (to a lifetime maximum of
$90,000)
– Exempt as asset by ODSP
– Income from RDSP exempted by ODSP
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Other Benefits Available
Under the Income Tax Act
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Caregiver Amount
• Eligibility Criteria (2011)
– Maintained a dwelling where you and
one of your dependents lived
– Dependant must be a spouse, commonlaw partner, child or grandchild
– Cannot claim amount for person
visiting you
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Caregiver Amount (con’t)
• Eligibility Criteria (2011) – con’t
– Dependant 18 years or older
– Dependent due to impairment in
physical or mental functions
– Dependant net income must be below
$18,645
• Amount of credit (2011)
– Tax credit of $4,282 (up to $642)
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Amount for Infirm Dependants
• Eligibility Criteria (2011)
– Dependant child/grandchild 18 years or
older
– Dependent due to impairment in
physical or mental functions
• Amount of credit (2011)
– Tax credit of $4,282 (up to $642)
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Homebuyer’s Amount
• Eligibility Criteria
– DTCC (if not a first-time buyer)
– Can buy for related person who qualifies for
DTCC (to allow person to live in more
accessible home)
– Purchase of qualifying home closing after
January 27, 2009
• Amount of credit (2011)
– Up to $5,000
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HST Information
• Some goods and services used by persons
with disabilities are exempt
• E.g.
–
–
–
–
Most health-care services
Personal care and supervision programs
Medical devices and supplies
Specially equipped motor vehicles
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Can I Adjust Prior Years’ Returns?
• Yes
• Up to 10 years prior to current year
• Disability Amount
• Caregiver Amount
• Complete T1 Adjustment Request Form
http://www.cra-arc.gc.ca/E/pbg/tf/t1-adj/
• Submit separate form for each year
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Can I Adjust Prior Years’ Returns?
Pooranlaw
www.pooranlaw.com
CRA Guide (RC4064) – Medical & Disability-Related Information
http://www.cra-arc.gc.ca/E/pub/tg/rc4064/README.html
Disability Tax Credit Certificate (T2201)
http://www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html
Caregiver Tax Credit
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncmtx/rtrn/cmpltng/ddctns/lns300-350/315/menu-eng.html
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QUESTIONS
Brendon D. Pooran
416-617-6805
[email protected]
www.pooranlaw.com
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This webinar was brought to you by
CLEONet
For more information visit the Health and
Disability Law section of CLEONet at
www.cleonet.ca
For more public legal information webinars
visit:
http://www.cleonet.ca/training
2010, Community Law School
(Sarnia-Lambton) Inc.