Filing your income tax return is more than just paperwork. It is one of the most important steps to accessing provincial and federal benefits like the Canada Disability Benefit (CDB), Disability Tax Credit (DTC), and the Registered Disability Savings Plan (RDSP).
These disability considerations for tax season can help you receive every dollar you are eligible for!
Maximize your benefits by filing on time
The annual tax filing deadline is April 30 for most people or June 15 for those who are self-employed. It’s important to file your taxes before this deadline, because the government will use this information to determine how much you should receive in tax credits and benefits.
If you don’t file your taxes on time, you may lose your eligibility for benefits that you should be entitled to.
For some benefits, such as the CDB, the government also considers your partner/spouse’s income to decide how much you should receive, so it’s important that they also file their taxes on time.
File your taxes even if you don’t have any income
Even if you didn’t earn any income this year, you should still file your taxes! If you don’t submit a tax return, you could miss out on important benefits.
Non-refundable tax credits, such as the DTC, can still be helpful when you don’t have any income yourself, as they can be transferred to another person, or sometimes multiple people. Check to see if you can share the tax benefits of these credits with others.
Start filing at age 17 for your child
If you have an RDSP for your child with a disability, you should make sure they start filing a tax return once they are 17. This is because once a beneficiary turns 19, their eligibility for government grants and bonds is based on their own income from two years prior. Avoid missing out on these contributions and make sure income tax returns are filed for the years when the beneficiary turns 17 and 18.
Keep your information up to date
The best way to ensure a smooth tax season is to keep your information up to date with the Canada Revenue Agency. Ensure your mailing address, relationship status, and direct deposit information are updated to avoid delays.
If you need support, the CRA offers tax information in alternative formats (such as braille or large print) and may provide deadline extensions or interest waivers in certain circumstances.
Make this tax season the year you claim every credit you are eligible for
It’s a good idea to get support with filing your taxes so that you can make sure you’re maximizing the financial benefits you could be entitled to.
Maximize your return with credits that are often overlooked. For instance, the Canada Groceries and Essentials Benefit —an expansion of the GST/HST credit—provides up to $950 per year and is automatically paid to low-and modest-income individuals. Also, remember that you can claim the fee charged by a medical practitioner for completing your DTC form as a medical expense.
You can get support with filing at a free tax clinic and find the benefits you could be eligible for by using the Benefits Wayfinder tool.
Need more support? If you have questions about tax filing for people with disabilities, disability benefits, or any other disability planning considerations, reach out to Plan Institute’s Disability Planning Helpline at the national toll-free number, 1-844-311-7526, or email [email protected] to access free one-on-one support.
