What’s new

Fillable Form T2201 – We have just added a fillable version of Form T2201, Disability Tax Credit Certificate, to the CRA website.

Using Adobe software, you can complete the self-assessment questionnaire on the second page of the introduction, and the information in Part A of the form (page 1 of the form itself). You can then print the form, and take it to a qualified practitioner who can certify the sections that apply.

For more information, see About fillable forms. This page includes information on how to obtain free Adobe software that will allow you to fill out and print the form.

Eligibility for the Disability Tax Credit Extended to 2004 for Children with Type 1 Diabetes – For 2005 and subsequent tax years, proposed amendments to the Income Tax Act will give eligibility for the disability tax credit to most children with Type 1 diabetes.

If a child is unable to perform the activities related to the therapy because of his or her age, the time that the child's primary caregivers spend performing and supervising these activities can be counted toward the 14-hour requirement. The criteria under which a child with diabetes is eligible for the credit are given under "Life-sustaining therapy” on the 2005 version of Form T2201, which will be available on the Web December 15, 2005. The paper version of the form will be available January 3, 2006.

The Canada Revenue Agency (CRA) has agreed to extend this eligibility to the 2004 tax year based on the proposed amendments and on decisions made by the Tax Court of Canada.

Before a taxpayer can take advantage of this administrative practice, a
Form T2201, Disability Tax Credit Certificate, must be submitted for each child with type 1 diabetes. At the same time, the taxpayer or the taxpayer’s representative must ask that the CRA reassess the taxpayer’s 2004 income tax return.

Eligibility for years prior to 2004 may be possible if a taxpayer has the legal right to appeal his or her Notice of Assessment for that year. For more information on appeal rights and the time frame for exercising such rights, see Resolving disputes – Income tax.

New fairness provisions – This notice is for those individuals who feel they may qualify, in any year prior to 1995, for the Disability Tax Credit (or the disability amount from line 316).

Prior to 2005, the Income Tax Act provided the Minister with discretion to issue income tax refunds beyond the normal three-year period for the 1986 and following taxation years (or 1985 for individuals who were blind or confined to bed or wheelchair) for those individuals who did not claim the disability amount on their prior year income tax returns.

Effective January 1, 2005, the revised fairness provisions, as proposed in the March 2004 federal budget, will no longer be retroactive to the 1985 to 1994 taxation years. A 10-year limit will be imposed with this proposed legislation. For example, a request made in 2005 will be accepted only for 1995 and the following taxation years. The Canada Revenue Agency (CRA) issued a press release on October 18, 2004 which explains these proposed rules.

Disability supports deduction – Under proposed legislation, the attendant care expenses deduction on line 215 has been replaced with a broader disability supports deduction. There are now other disability supports expenses you can claim at this line in addition to attendant care expenses. Also, you no longer need to qualify for the disability amount to be eligible for this deduction, unless you are claiming part-time attendant care expenses. For more information, see line 215.