I can’t tell you how many times I’ve had a client say in disbelief, “Wait… there’s a tax credit for this? How did I not know?”
If you’re raising a child with a disability or prolonged impairment, it can feel like every resource has to be dug up through trial and error. It’s rarely laid out clearly, and sometimes what you don’t know ends up costing you time, energy, and money.
The Disability Tax Credit (DTC) is one of those supports that some families never hear about. It doesn’t make headlines, and no one knocks on your door to tell you it exists. But for many families that I work with, it has provided meaningful financial relief.
Why so many people miss it
There’s a gap between what families are entitled to and what they actually access. Many parents assume:
- “It must be for really severe disabilities.”
- “We probably wouldn’t qualify.”
- “We’ve never heard of it, so it must not apply to us.”
In reality, eligibility isn’t based on labels—it’s based on how an impairment affects daily living. That includes things like walking, dressing, feeding, speaking, or mental functions necessary for everyday life. Conditions that aren’t always visible, such as ADHD, autism, anxiety, or other chronic health issues, can qualify if they have a significant impact.
And it’s not just for children. Adults can apply too.
See CRA eligibility details
What the Disability Tax Credit is (and isn’t)
The DTC is a non-refundable tax credit from the federal government. It can reduce the amount of income tax you owe or increase your refund. If your child qualifies, the credit can be transferred to you as their parent or guardian. If they’ve had the impairment for years, you may even be able to claim retroactive credits going back up to ten years.
It’s not a monthly cheque. It’s a way to ease your tax burden and, in some cases, free up funds for the care and support your child already needs.
CRA overview of the DTC
How to apply without getting overwhelmed
The words “government form” are enough to make anyone sigh. But once you know what to expect, the process is surprisingly straightforward.
Step 1: Get the form
You’ll need the T2201 Disability Tax Credit Certificate.
Download it or fill it out online through CRA My Account.
T2201 form
Step 2: Fill out your part (Part A)
As the parent or guardian, you complete Part A. This includes basic information and whether the credit should be transferred to you.
Step 3: Have a medical practitioner fill out Part B
This section confirms how your child’s impairment impacts their daily life. Depending on the situation, it can be filled out by a doctor, nurse practitioner, psychologist, occupational therapist, or other qualified professional.
Who can fill out the medical section
Some providers may charge a fee to complete the form. That cost can often be claimed as a medical expense.
Step 4: Submit the form
You can submit it through CRA My Account or by mail. Online submissions are typically faster.
How to apply
Step 5: CRA reviews and responds
CRA will send you a Notice of Determination letting you know if the application was approved and for which years. If approved, you can claim the credit on future returns and, in many cases, adjust past returns to receive retroactive credits.
Claiming the DTC
What this can mean for families
For some families, the credit might mean a few hundred dollars each year. For others, especially with retroactive claims, it can be several thousand. But the real value often isn’t just the number. It’s the breathing room. The extra cushion to ease some of the financial strain that can come with raising a child who needs additional support.
And it’s worth repeating: it costs nothing to apply.
Common misconceptions
- “My child isn’t ‘disabled enough.’”
Eligibility is about daily impact, not labels. - “We don’t owe taxes, so it won’t help.”
The credit can be transferred to a supporting family member. - “The process is too complicated.”
It can look intimidating at first, but thousands of families complete it every year. - “If we’re denied, that’s it.”
You can appeal or submit additional information. Denial is not always final.
Other programs the DTC can unlock
If your child is approved for the DTC, it may open the door to other supports, including the Registered Disability Savings Plan (RDSP) and certain provincial or territorial programs.
More on RDSP
A quiet but powerful step
This isn’t something most families hear about in a school meeting or from a pediatrician. It’s something you stumble upon—often years later—when someone happens to mention it.
But the Disability Tax Credit has made a real difference for many families. If your child lives with an ongoing impairment, it’s worth applying. Even if you’re unsure, there’s no penalty for trying, and the potential impact can be significant.
Quick links:
This article is for informational purposes only and does not constitute legal, financial, tax, or medical advice. Eligibility for the Disability Tax Credit is determined solely by the Canada Revenue Agency (CRA). For specific guidance on your situation, consult a qualified medical practitioner, tax professional, or contact the CRA directly.
Photo by C.F. Photography on Unsplash
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