Andy Wong, Guest columnist
Monday, November 8, 2010

I have a client who is literary blind as a bat. His vision impairment
is irreparable. But he had a job, drives (not legally, I discovered
afterward) and was very physically active. One day he surprised me, "I
have a CNIB number". "You mean you are legally blind"? I asked. "I
guess", he replied.

After filing a flurry of documents to the Canada Revenue Agency and
receiving a very large refund, I realized here is one often-overlooked
tax claim - the Disability Tax Credit (DTC).

If you have a severe and prolonged mental or physical impairment you
could be eligible to claim the disability tax credit. For 2010, this
credit reduces your taxes by about $1,700 (NT resident) or $1,550 (NU
resident).

Understanding this claim does require you to expand your vocabulary.

Prolonged means the impairment has lasted, or is expected to last, for
at least 12 months. For example, if you suffer a hearing impairment in
October 2010 and the impairment is expected to last at least 12
months, you qualify for the DTC in 2010 even though the impairment had
not yet affected you for 12 months by the end of 2010.

Severe means your ability to perform a basic activity of daily living
is 'markedly restricted'. That means you cannot perform that activity
'all or substantially all of the time' or it takes you an inordinate
amount of time you to do it. 'A basic activity of daily living' means
speaking, hearing, walking, elimination (bowel or bladder), feeding,
dressing or mental functions necessary for everyday life.

You don't have to be totally blind, incapacitated, deaf or dumb to
qualify for this claim. In fact, you may be gainfully employed and
qualify for this claim. For example, you are considered to have a
severe and prolonged physical impairment if you have difficult walking
all the time, i.e., you can walk up to 100 meters (city block) but it
takes you forever and you have to stop afterwards because of pain or
shortness of breath. Similarly, you may also qualify under the mental
impairment if you need daily supervision because you forget where you
are all the time (dementia).

A point worth repeating - you do not have to be permanently or totally
incapacitated in any one of the activities of speaking, hearing,
walking, elimination, feeding, dressing or in your mental functions to
claim the DTC. The qualification is a lesser test. The impairment need
not be permanent; only that it has lasted, or is expected to last 12
months. The impairment does not have to render you totally incapable
of performing an activity; just that it takes you longer compared to a
normal person.

To prove your impairment, your medical practitioner must complete Form
T2201, Disability Tax Credit Certificate. Google 'T2201' or go to
http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/menu-eng.html

If your medical practitioner certifies your disability started in an
earlier year, i.e., 2005, you can ask the CRA to amend your tax
returns from 2005-2009. You can go back to a maximum of ten years if
your disability is certified to have started at or before that time.
In the case of the client above, his refund from claiming the past ten
years of the DTC totaled more than $16,000. It's no small potatoes if
you missed this claimed in the past.
Next week: You definitely need to know about the Registered Disability
Savings Plan if you or your child qualifies for the Disability Tax
Credit.

Andy Wong, CGA, CFP, is a tax consultant at MacKay LLP, Chartered
Accountants, in Yellowknife. He can be reached at:
andyw...@yel.mackay.ca

-----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett – Tax Collector’s Bible

Being declared disabled by the CPP does not mean you will automatically be
declared disabled according to CRA, and being denied by the CPP doesn't mean
that you won't be considered disabled by CRA.

Andy Wong, Guest columnist
Monday, November 8, 2010

I have a client who is literary blind as a bat. His vision impairment
is irreparable. But he had a job, drives (not legally, I discovered
afterward) and was very physically active. One day he surprised me, "I
have a CNIB number". "You mean you are legally blind"? I asked. "I
guess", he replied.

After filing a flurry of documents to the Canada Revenue Agency and
receiving a very large refund, I realized here is one often-overlooked
tax claim - the Disability Tax Credit (DTC).

If you have a severe and prolonged mental or physical impairment you
could be eligible to claim the disability tax credit. For 2010, this
credit reduces your taxes by about $1,700 (NT resident) or $1,550 (NU
resident).

Understanding this claim does require you to expand your vocabulary.

Prolonged means the impairment has lasted, or is expected to last, for
at least 12 months. For example, if you suffer a hearing impairment in
October 2010 and the impairment is expected to last at least 12
months, you qualify for the DTC in 2010 even though the impairment had
not yet affected you for 12 months by the end of 2010.

Severe means your ability to perform a basic activity of daily living
is 'markedly restricted'. That means you cannot perform that activity
'all or substantially all of the time' or it takes you an inordinate
amount of time you to do it. 'A basic activity of daily living' means
speaking, hearing, walking, elimination (bowel or bladder), feeding,
dressing or mental functions necessary for everyday life.

You don't have to be totally blind, incapacitated, deaf or dumb to
qualify for this claim. In fact, you may be gainfully employed and
qualify for this claim. For example, you are considered to have a
severe and prolonged physical impairment if you have difficult walking
all the time, i.e., you can walk up to 100 meters (city block) but it
takes you forever and you have to stop afterwards because of pain or
shortness of breath. Similarly, you may also qualify under the mental
impairment if you need daily supervision because you forget where you
are all the time (dementia).

A point worth repeating - you do not have to be permanently or totally
incapacitated in any one of the activities of speaking, hearing,
walking, elimination, feeding, dressing or in your mental functions to
claim the DTC. The qualification is a lesser test. The impairment need
not be permanent; only that it has lasted, or is expected to last 12
months. The impairment does not have to render you totally incapable
of performing an activity; just that it takes you longer compared to a
normal person.

To prove your impairment, your medical practitioner must complete Form
T2201, Disability Tax Credit Certificate. Google 'T2201' or go to
http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/menu-eng.html

If your medical practitioner certifies your disability started in an
earlier year, i.e., 2005, you can ask the CRA to amend your tax
returns from 2005-2009. You can go back to a maximum of ten years if
your disability is certified to have started at or before that time.
In the case of the client above, his refund from claiming the past ten
years of the DTC totaled more than $16,000. It's no small potatoes if
you missed this claimed in the past.
Next week: You definitely need to know about the Registered Disability
Savings Plan if you or your child qualifies for the Disability Tax
Credit.

Andy Wong, CGA, CFP, is a tax consultant at MacKay LLP, Chartered
Accountants, in Yellowknife. He can be reached at:
andyw...@yel.mackay.ca

-----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett – Tax Collector’s Bible

What is "literary blind"?  Is it some inability to appreciate
Shakespeare?

If he meant "literally blind as a bat", then the client
would not be eligible for any disability benefit on that basis.
Bats see quite well, many just have an additional sonar type ability.

Adding "literally" before something mean that the expression
is true in a precise or strict sense, not in some figurative sense.

"client who is blind as a bat" would be the wording he wants.