Disability Tax Credit & Registered Disability Savings Plan

Well on Your Way

The disability tax credit (DTC) helps people with disabilities (or the people who support them) reduce the amount of income tax they have to pay.

To be eligible:

  • you must have a severe impairment in physical or mental functioning
  • the impairment must last for at least 12 months
  • you must be restricted at least 90 per cent of the time

Application Process

  1. Complete Part A of Form T2201 (Disability Tax Credit Certificate).
  2. Your healthcare provider has to complete and sign Part B of this form. Your healthcare provider may charge a fee to fill out this form. Depending upon your health condition or disability, eligible healthcare providers may include your doctor, nurse practitioner, optometrist, audiologist, occupational therapist, physiotherapist, psychologist, or speech language pathologist.
  3. Send the completed and signed form to the Canada Revenue Agency.

The Canada Revenue Agency will review your application, and send you a letter to let you know if you are eligible or not.

You can claim the disability amount on your income tax return. If you do not earn enough money to use all of your DTC, you can transfer any unused portion to a person who supports you.

Registered Disability Savings Plan

When you are eligible for the DTC, you can open a Government of Canada Registered Disability Savings Plan (RDSP)

The RDSP helps Canadians with disabilities and their families save for the future. The Government of Alberta exempts money in a RDSP so this money does not affect your eligibility for provincial benefits, like AISH & PDD.

Even if you have no income, it is a good idea to open a RDSP so you can get the Canada Disability Savings bond and grant.

To learn more about the RDSP, visit the RDSP Plan Institute website or contact your local PLAN office. PLAN (Planned Lifetime Advocacy Network) is a family-led charitable organization dedicated to building inclusive communities for all citizens.