Sunday, 10 April 2016

Simplifying The Disability Tax Credit Canada

By Peter Hill


There are over two million people who are disabled in Canada and this is what necessitated the country to look into ways of making their lives to be more comfortable just like for the normal people. One of the ways of achieving this feat was through the introduction of the disability tax credit Canada. Whenever you mention it you will get an audience since most people do not understand it.

This tax credit is meant for the physically challenged persons to claim if their taxable income is not adequate enough. This claim can also be used together with a family member who usually assists these persons. This is to provide a relief to them as the disabled persons usually strain them.

The funds are not a must to be used on only issues touching on the welfare of the disabled people alone. They were introduced with the aim of helping such people to share the same financial freedom that is enjoyed by people who are able-bodied. However, in order for these people to enjoy these benefits they ought to satisfy the eligibility criteria that were put in place by the CRA to make sure that only the affected persons enjoy it.

The applicants have to prove beyond doubt that they are suffering from an impairment that makes it difficult for them to carry on their normal life duties. These should be in line with some of the categories identified by the Canadian Revenue Agency in order to be deemed eligible. These categories usually touch on eight main points that the agency considers a lot.

The various other needs that these applicants require like undergoing therapies later on in order to sustain their lives are considered by the CRA and the other factors affecting them. The disability in which the application is founded on should also have been in existence for a period exceeding a year. The same ought to be expected to keep on existing.

All applications made by qualified Canadians have to be taken through a thorough check and usually against some evaluation guidelines that were created by the CRA. These guidelines are used to evaluate all the applications made regardless of the severity of the disabilities. All applications ought to be made on a T2201 form which is normally filled and also signed by your physician to capture all your personal data.

Currently there have been calls for reforms in the way these claims are made as most people complain that they are not worth enough. The complaints range from the complex application processes and the eligibility requirements being too restrictive. Other complains attack the CRA claiming that it turns down the applications and that some doctors also deem them not eligible at all.

CRA claims that few Canadians of the many that are eligible to claim this credit usually claim it. It seems that CRA has heard the complaints that dog this important credit process and it is considering an overhaul to put in place new regulations. This will be aimed at ensuring that more disabled Canadians have more money placed in their hands.




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