The Canada Revenue Agency (CRA) administers a range of benefits and credits for people with disabilities or those caring for a dependent with a disability.
Child Disability Benefit – The Child Disability Benefit (CDB) is designed for families caring for a child under age 18 suffering from severe and prolonged physical or mental functions. The CDB is paid monthly with the Canada Child Tax Benefit on the 20th day of each month. The CDB, which is based on family net income, provides up to a maximum of $205.83 per month for each child eligible for the disability amount. The CDB is reduced when family net income exceeds $ 40,970. For more information, visit www.cra.gc.ca/cdb
Disability Amount – If a qualified practitioner certifies on Form T2201, Disability Tax Credit Certificate, that you have a severe and prolonged physical or mental disability, you can claim the disability amount of $ 7,239 when filing your 2010 return. The disability amount can be transferred in whole or in part if the disabled person does not need to reduce its taxable income.
Medical Expenses – You may be able to claim the cost of medical expenses for a period of 12 months ending in 2010 (provided they were not claimed before) for yourself, your spouse or common-law partner, or your dependents. For 2010, your total expenses must exceed 3% of your net income or $ 2,024, whichever is less. For more information on medical expenses, including a list of common eligible expenses, visit www.cra.gc.ca/physician.
Registered Disability Savings Plan – A Registered Disability Savings Plan (RDSP) is a plan that provides for long-term financial security of a beneficiary who has a serious impairment of physical or mental function. The beneficiary under an RDSP must be eligible for disability tax credit. Although contributions are not tax deductible, income earned on contributions are tax-exempt while the funds remain in the plan. When earnings are withdrawn from the savings plan, they are taxable to the beneficiary. For more information, www.cra.gc.ca/disability.
For more tax information for people with disabilities, see Guide RC4064, Medical and Disability-Related Information, or go to www.cra.gc.ca/disability.