If your child has recently received a diagnosis, it’s understandable to feel overwhelmed by the flood of information you’re encountering. To help you navigate this, it’s important to be aware of key government support and financial programs that can make a difference. Here’s a clear overview of the three main financial programs, often referred to by their acronyms, to help simplify things.
Disability Tax Credit (DTC)
What does it cover?
Tax credit that reduces the income tax of disabled people or their caregivers to offset the costs of living with disabilities.
Who is eligible?
A medical practitioner must certify that you have a severe and prolonged impairment in one of the categories, significant limitations in two or more categories such as mental function, speaking, dressing, feeding, or eliminating (bladder/bowel functions). Full eligibility criteria here.
How do you access it?
You can apply online by filling out a digital form and having your doctor fill out a form as well. You can start the application process by logging into your CRA account. Note: Most family doctors charge a fee to fill out a DTC form as it takes time to complete. Once approved, you may be eligible to request back pay based on the dates you’re approved for.
More information can be found here.
Child Disability Benefit (CDB)
What does it cover?
Tax-free monthly payments made to families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.
Who is eligible?
If you’re eligible for the Canada Child Benefit and the disability tax benefit, it’s likely you’re eligible for the Child Disability Benefit.
How do you access it?
You don’t need to apply if you have already applied for the Disability Tax Credit. Note: There’s a reduction based on income over a certain threshold. You may be eligible for back pay and need to request that separately after you’re approved.
More information can be found here.
Registered Disability Savings Plan (RDSP)
What does it cover?
Canada-wide registered matched savings plan for people with disabilities. For every dollar you contribute the government matches with a certain amount depending on family income.
Who is eligible?
Residents of Canada under 59 years old with a valid SIN who are eligible for the disability tax credit.
How do you access it?
Most financial institutions offer an RDSP. They don’t offer all the same benefits. Be sure to check this non-exhaustive list and a guide on what to ask to help you choose the correct one before you decide.
More Information can be found here.