Frequently asked questions

1. I have a parking permit that allows me to park my vehicle in designated handicapped parking. Does that mean I would qualify to receive the Disability Tax Credit?

No, having a handicapped parking permit does not mean that you will automatically be eligible to receive the Disability Tax Credit.
To be eligible for the Disability Tax Credit, you must have Form T2201 certified by a qualified practitioner and approved by the CRA.

2. My son, daughter, and/or accountant sometimes prepare my income tax and benefit return. Can CRA staff contact them directly on my behalf?

Due to the confidentiality rules contained in the Income Tax Act (ITA), CRA employees are not permitted to discuss ANY INFORMATION with a third party unless you have authorized the CRA in writing to do so.
You can authorize a third party to access your individual tax information:

by authorizing a representative through My Account, the CRA’s online portal, or
by completing and submitting Form T1013, Authorizing or Cancelling a Representative, to the Canada Revenue Agency. Form T1013 can be downloaded at www.cra.gc.ca/forms or requested by contacting the CRA at
1-800-959-2221.

3. Where should I send my completed Form T2201?

You can submit the completed form on its own or enclosed with your completed income tax and benefit return to the tax centre that processes your tax return.

Note: Please see the list of Canada Revenue Agency tax centres in the next section of this CD.

4. What if I don’t have taxable income and do not have a spouse, common-law partner, or other supporting person to transfer the Disability Tax Credit to?

The non-refundable Disability Tax Credit would not be of benefit to you for any year in which you do not have a taxable income.

5. Do I have to send in a new Form T2201 every year?

Generally, you are not required to send in a new form each year. The exceptions are:

If CRA has determined that your eligibility period is temporary and your current eligibility has expired. This will be indicated on your Notice of Assessment.
If your application has been disallowed and you are preparing an application for another year
If your circumstances change and/or your impairment has worsened
If there are changes in legislation that would effect your eligibility.

6. Can I request a reassessment for previous tax years? How many years can I go back?

If you want the CRA to reassess a tax year to allow a claim for the Disability Tax Credit, you need to either submit Form T1 ADJ (T1 Adjustment Request) or send a letter to the CRA containing the details of your request.
You can request a reassessment for up to 10 calendar years

Note: You can download Form T1 ADJ at www.cra.gc.ca/forms or call 1-800-959-2221 to request a copy.

7. Am I required to complete and submit another Form T2201 for a reassessment request?

No, your original Form T2201 is on file and gives the start date of your impairment. This will be verified when a request for reassessment is received.

8. How much would the Disability Tax Credit be worth to me?

The amount of the credit is indexed on a yearly basis. For the 2007 tax year, it could reduce your tax payable by up to $1,034.00.

Note: Keep in mind that this is a non-refundable tax credit and is solely intended to reduce your amount of tax payable.

9. Where do I claim the Disability Tax Credit?

You claim the Disability amount on line 316 of Schedule 1 of your income tax and benefit return.

10. Who determines eligibility for the Disability Tax Credit?

The information provided by the qualified practitioner will be considered in context with existing legislation and used by the CRA to determine if the person is eligible for the Disability Tax Credit.

11. What if I disagree with the CRA’s decision?

If the CRA does not approve your application, they will send you a letter to explain why your application was denied. Check your copy of the form against the reason given, since the CRA bases their decision on the information provided by the qualified practitioner.

If you have additional information from a qualified practitioner that the CRA did not have in their first review of the form, send that information to the Disability Tax Credit Unit at your tax centre and the CRA will review your file.

You also have the right to file a formal objection to appeal the decision. Objections, however, cannot be based on a letter from the CRA. They must be based on a Notice of Assessment or Notice or Reassessment. The CRA sends you these notices after you file an income tax and benefit return or ask for a correction to an income tax and benefit return for the year in question.

There is a time limit for filing objections. You must file your objection by whichever of the following dates comes later:

One year after the due date for the return in question; or
90 days after the date of the Notice of Assessment or Notice of Reassessment for that year.

Note: Asking your tax centre to review your file again (see above) does not extend the time limit for filing an objection.

If you choose to file a formal objection, your file will be reviewed by the Appeals Branch. You should send either a completed Form T400A, Objection – Income Tax Act or a letter to the attention of:

Chief of Appeals
Sudbury Tax Services Office
1050 Notre-Dame Avenue
Sudbury ON P3A 5C1

You can also file an objection electronically through the CRA’s secure Web site at: www.cra.gc.ca/myaccount.

For more information, visit the CRA Web site at www.cra.gc.ca or read Pamphlet P148, Resolving Your Dispute: Objections and Appeal Rights Under the Income Tax Act.