Disabled Canadians Finally Get Support

Walter Harder

Back on July 17, the government announced that it would provide a one-time tax-free payment of $600 to more Canadians with disabilities.  These individuals will finally see payment of that amount beginning this week.  But there are more opportunities that qualified tax practitioners can help with before year end. 

First the outstanding tax free disability payments will be made to disabled taxpayers who qualify for the Disability Amount as well as those who receive a CPP or QPP disability pension or receive certain disability supports provided by Veterans Affairs Canada.

For disabled seniors who received the one-time $300 payment because they were receiving OAS, the amount will be reduced by the $300 payment, leaving a payment of $300 this week.  If the disabled senior was receiving the Guaranteed Income Supplement, they received an additional $200 payment, which will also reduce this week’s payment to $100.

Taxpayers who have not yet applied for, or are in the process of applying for the Disability Amount, may not receive the payment this week.  If their eligibility is confirmed by the end of November, they will receive their payment in January 2021. 

Those who do not receive the October or January payment but apply before December 31 and are confirmed eligible by the end of February 2021 will receive their payment sometime in the spring of 2021.  The government indicates that it takes approximately eight weeks to process a disability application.

Disabled people should also look into whether they missed claiming a Disability Tax Credit in the past – going all the way back to 2010.  If so, they can request an adjustment to prior filed returns. 

It is important to have a medical practitioner fill out the T2201 Disability Tax Credit form (hotlink) to make this claim. Any fees paid to have the form completed qualify for a medical expense deduction as well.

A qualified tax specialist can help with this and the results could be several thousands of dollars in missed refunds.

Additional educational resources: Help Canadians access the benefits and credits they need as a DFA-Tax Services Specialist™.