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Ontario Disability Tax Credit Certificate (Form T2201)*

Parents of dependent children with any Mental Health diagnosis are encouraged to apply for the Federal Disability Tax Credit Certificate.  This certificate allows you to enjoy a tax savings at almost any income level (NOT just for lower income families)!  Once approved, the tax credit is transferred from the child who qualifies to a parent or other supporting person.  It is only useful to someone who pays taxes (in some cases a person with a disability has no taxable income).

This tax credit is available whenever a child of any age is markedly restricted in the activities of daily living on an on-going basis.  These restrictions can be cognitive, developmental, physical or mental, or a combination of disabilities.  For children with mental health issues, the section of the form dealing with “Mental functions necessary for everyday life” is the area of interest to you.  Some examples of the effects of your child’s impairments could be, but are not limited to:

  • Constant supervision required due to hyperactivity or behaviour
  • Parent must stay home to provide care (i.e., loss of income)
  • Extra time/supervision needed to complete tasks like homework
  • Supervision/re-direction needed in social situations
  • Requires daily medication
  • Requires frequent trips to the doctor/pediatrician
  • Prolonged or repeated lessons (i.e. swimming) to be promoted or to progress
  • Private lessons / tutoring

In 2008, the credit returned approximately $1,600.00 each year to a taxpayer that made use of it.  It could also be back-filed ten years on a rolling annual basis (your claim can be back-filed to the date of your child’s diagnosis).  In the years prior to 2001, the tax credit return was $1,000.00 per year as was the previous allowance.  This back-filing for the full period in 2008 would return approximately $15,000.00 to the taxpayer.

To apply for this credit, the Disability Tax Credit Certificate (form T2201) must be completed by an authorized healthcare professional.  In the case of learning disabilities, the authorizing professional can be a registered psychologist.  Complete details about this tax credit are contained in the guide, RC4064-Medical and Disability-Related Information, which also contains the form T2201. http://www.cra-arc.gc.ca/E/pub/tg/rc4064/README.html

To check your eligibility, visit the Canada Revenue Agency website: http://www.cra-arc.gc.ca/bnfts/fq_cdb-eng.html#q4  or call toll free: 1-800-959-8281.