"So many dreams at first seem impossible. And then they seem improbable. And then when we summon the will, they soon become inevitable."
~ Christopher Reeve

Sunday, November 23, 2008

'Getting It Right The First Time' ~ Applying For The Disability Tax Credit

We've discussed the Disability Tax Credit numerous times on this blawg and there's no doubt that it's a powerful financial benefit for the disability community. As noted previously,

It gives a nice size tax credit to an individual with a *** "profound impairment" resulting in them being "markedly restricted" in any of the basic activities of daily living. It can be used by the taxpayer (to offset their taxable income) OR transferred to another "supporting" relative, such as a spouse (or, in the case of a child under the age of 18 years, to a parent or guardian).
As it turns out, an individual must also receive, or at least be eligible for this credit in order to be eligible to set up a Registered Disability Savings Plan.

Unfortunately, as many may know, sometimes applying for this credit can be a frustrating and time-consuming experience. The good news is that Doug, at the RDSP Blog has posted a guest post by Doug Lagasse of Ken Lagasse Inc., Chartered Accountants which not only sets out some of the challenges of applying for the Disability Tax Credit but also lays out what you can do to increase your chances.

So go read it. I highly recommend it.

*** Prior to 2005, the above was the required wording in order to be eligible for the Disability Tax Credit. After 2005, the requirments were changed somewhat and can be found here.

No comments: