Making National Seniors Day Count

October 1 is National Seniors Day and tax and financial advisors can help in a significant way by inviting seniors to their offices to review specific provisions they may be missing on their tax returns, like the Disability Amount.

As people age, disabilities begin, and so it's appropriate on Seniors Day to contact clients and see if it makes sense to review whether an application should be made for the Disability Amount for someone whose health has changed significantly in the family. Enquire if the taxpayer or spouse has:

• a disability that is severe and prolonged, which is expected to last for a continuous period of at least 12 months, starting in the tax year.
• markedly restricted basic activities of living. Marked restrictions include the following conditions:
  • Permanent blindness (a CNIB number is usually available)
  • Severe cardio-respiratory failure
  • Inability to feed or dress oneself
  • Inability to perceive, remember or think
  • Inability to walk
  • Inability to speak
  • Inability to hear
  • Inability to contain bowel or bladder functions.

Taxpayers who must receive therapy like kidney dialysis may claim this credit if a doctor certifies that at least 14 hours per week are taken for such therapy.

Form T2201 Disability Tax Credit Certificate must be completed and signed by a medical doctor, optometrist, psychologist, occupational therapist, audiologist or speech-language pathologist and so on. Generally, the CRA requires that the form be filed in the first year that the credit is claimed.

The Disability Amount may be claimed if there is a claim for Attendant Care Expenses elsewhere on the return. However, the Disability Amount may not be claimed if the costs of a full-time attendant or care in a nursing home or institution are also claimed as a medical expense unless the amount claimed is less than $10,000.