Feds extend application period for disability tax credit

Nearly 1.6 million people to begin receiving payments on Oct. 30

Feds extend application period for disability tax credit
The federal government is extending the application period for the Disability Tax Credit (DTC) to Dec. 31, 2020.

The federal government is extending the application period for the Disability Tax Credit (DTC) from Sept. 25 to Dec. 31, 2020, to give people more time to submit their applications, and the government time to issue decisions regarding eligibility.

The program is a one-time non-taxable and non-reportable payment of up to $600 to support Canadians with disabilities to help with additional expenses incurred during the pandemic.

Earlier this month, the government also opened applications for the Canada Recovery Caregiving Benefit (CRCB), the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Benefit (CRB).

The tax credit that will help persons with disabilities covers:

  • expenses related to hiring personal support workers and accessing other disability supports
  • paying for increased costs for medical supplies and medication
  • the purchase of personal protective equipment (PPE)
  • higher costs associated with physical distancing and working from home
  • the increased use of transportation and home delivery services to obtain groceries and prescriptions.

Nearly 1.6 million people will begin receiving their payment on Oct. 30, 2020, using direct deposit and mailing information from existing government programs, according to the government.

Being eligible for the DTC can also open the door to other federal, provincial or territorial programs such as the Registered Disability Savings Plan, the Canada Workers Benefit, and the Child Disability Benefit.

Previously, an economist warned that more than two million Canadians would be worse off transitioning from the CERB to the employment insurance (EI) program.

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