Government benefits and disability supports: an overview

The federal government supports people with disabilities and their families through regular payments, tax credits and a savings plan. Two things open the door to many of them: approval for the disability tax credit (DTC), and filing a tax return every year.

Start with the DTC and your tax return

Many programs use DTC approval as the entry ticket, including the registered disability savings plan, the Canada workers benefit disability supplement, the child disability benefit and the Canada Disability Benefit. The CRA suggests applying if you think you may be eligible, even if you have no income to report. See the disability tax credit for how to apply.

Filing matters just as much. The CRA uses your return to work out benefit and credit payments, and they can stop if you don’t file, even if you owe no tax or have no income. If you live in Quebec, you also file a provincial return with Revenu Québec. More on this in why file even with no income.

Benefit payments

Child disability benefit. A tax-free monthly payment for families caring for a child under 18 who is eligible for the DTC. You must be eligible for the Canada child benefit; if you already get it, the child disability benefit is added automatically once the child is approved. The amount depends on your adjusted family net income and is recalculated each July. When it starts, the CRA works out payments for the current and two previous benefit years; for years before that, you ask your tax centre in writing.

Canada Disability Benefit. Federal support for people with disabilities aged 18 to 64 who are approved for the DTC. Payments change with your family income. You don’t have to reapply each year, but you must keep your DTC approval and file your tax return by April 30 every year to stay eligible. Payments aren’t taxable, and no tax slip is issued.

Canada Pension Plan disability benefits. A benefit you may get if you can’t work because of a disability. Unlike the two above, it’s taxable, so it goes on your return. If you get it and have dependent children under 25, you can apply for the CPP children’s benefit too.

Veterans have separate disability benefits through Veterans Affairs Canada, which are tax-free.

Credits and deductions at tax time

These reduce your tax or add to your refund:

• Disability tax credit: a non-refundable credit for the person with the impairment, which can be transferred to a supporting family member.
• Canada workers benefit disability supplement: an extra amount on top of the Canada workers benefit for low-income workers who are approved for the DTC. It can be paid as part of your refund.
• Disability supports deduction: if you have an impairment, you can deduct certain costs you paid so you could work, go to school or do research funded by a grant, such as attendant care or devices and software. Only the person with the disability can claim it. An expense can’t be claimed both here and as a medical expense, but you can choose where to claim it or split it between the two. It must be claimed in the year you paid it.
• Medical expenses and attendant care: among the most common expenses people with disabilities claim.
• Home accessibility tax credit: a non-refundable credit for renovations that make a home more accessible.
• Multigenerational home renovation tax credit: a refundable credit toward creating a self-contained secondary unit.
• Canada caregiver credit: for the people who support someone with an impairment. See credits for caregivers.

If you, or the relative you buy a home for, are eligible for the DTC, you don’t have to be a first-time buyer to claim the home buyers’ amount.

Savings plans

The registered disability savings plan (RDSP) is a long-term savings plan for people approved for the DTC, and the government can add grants and bonds to it. The Home Buyers’ Plan lets you withdraw from your RRSPs to buy or build a qualifying home for yourself or for a related person with a disability.

Other help

• Excise gasoline tax refund: a refund of part of the federal excise tax on gasoline for people with a permanent mobility impairment who can’t safely use public transportation.
• Provincial and territorial programs: depending on where you live, you may qualify for provincial or territorial programs too. The CRA runs some of them, such as Newfoundland and Labrador’s disability amount and disability benefit.

Which payments are taxable

Payment	Taxable?
Child disability benefit	No
Canada Disability Benefit	No
CPP disability benefits	Yes
Veterans disability benefits	No

What to do

1. Apply for the DTC if you think you qualify, for yourself or a family member.
2. File a return every year, and make sure your spouse or partner does too.
3. Check each program above, starting with the ones tied to the DTC.