How to Apply for the Disability Tax Credit in Canada With Form T2201

Who can qualify for the Disability Tax Credit in Canada?

The Disability Tax Credit, commonly called the DTC, is a federal non-refundable tax credit administered by the Canada Revenue Agency. It is intended to help reduce the amount of income tax that a person with a qualifying impairment or, in some cases, a supporting family member may have to pay.

A medical diagnosis by itself does not determine DTC eligibility. The CRA looks at how the impairment affects the person's ability to perform specified activities of daily living or whether qualifying life-sustaining therapy is required.

What does severe and prolonged mean for the DTC?

For many DTC categories, a person may meet the marked-restriction test when, even with appropriate therapy, devices and medication, they are unable to perform the relevant activity or take an inordinate amount of time to perform it.

The CRA generally interprets an inordinate amount of time as taking at least three times longer than a person of similar age who does not have the impairment. The restriction must generally exist all or almost all of the time, meaning at least 90% of the time.

The impairment is considered prolonged when it has lasted, or is expected to last, for a continuous period of at least 12 months.

Which impairment categories can qualify?

The CRA assesses DTC eligibility under several categories:

• walking;
• mental functions necessary for everyday life;
• dressing;
• feeding;
• eliminating, including bowel or bladder functions;
• hearing;
• speaking;
• vision;
• the cumulative effect of significant limitations;
• life-sustaining therapy.

Can two or more limitations qualify together?

Yes. A person who does not have a marked restriction in one individual category may still qualify through the cumulative effect of significant limitations.

The limitations must affect two or more eligible categories, excluding life-sustaining therapy, exist together all or almost all of the time, and have a combined effect equivalent to being unable or taking an inordinate amount of time to perform an activity in one category.

Who qualifies under life-sustaining therapy?

The life-sustaining therapy category has separate eligibility criteria. CRA guidance states that the therapy must support a vital function, be required at least twice per week and generally require an average of at least 14 hours per week of time dedicated to administering the therapy or qualifying directly related activities.

People diagnosed with type 1 diabetes are deemed to meet the life-sustaining therapy criteria.

Which medical practitioner can complete Form T2201?

The practitioner who can certify Part B depends on the type of impairment:

• Medical doctor: all impairment categories.
• Nurse practitioner: all impairment categories.
• Optometrist: vision.
• Audiologist: hearing.
• Occupational therapist: walking, feeding and dressing.
• Physiotherapist: walking.
• Psychologist: mental functions necessary for everyday life.
• Speech-language pathologist: speaking.

The medical practitioner provides information about the impairment, but the practitioner does not make the final DTC eligibility decision. The CRA makes that decision after reviewing the application.

What form is required to apply for the Disability Tax Credit?

The required application is Form T2201, Disability Tax Credit Certificate. The form has two parts.

Part A of Form T2201

Part A is completed by the person with the impairment or their legal representative. It identifies the person applying and, when applicable, a supporting family member who may claim a transferred disability amount.

Part A also includes authorization for the CRA to contact the medical practitioner if necessary and an option concerning adjustments to eligible previous tax returns.

Part B of Form T2201

Part B must be completed by an authorized medical practitioner. The practitioner provides clinical information about the effects of the impairment and certifies the applicable section of the application.

The CRA uses the information in Part B to determine whether the person meets the DTC eligibility rules.

How to apply for the Disability Tax Credit online

The CRA offers a digital DTC application process.

1. Sign in to your CRA account and select your Individual account.
2. Go to Benefits and credits.
3. Select the option to apply for the Disability Tax Credit.
4. Complete and submit Part A.
5. Receive the application reference number.
6. Give the reference number to the medical practitioner.
7. The practitioner completes and submits Part B through the CRA digital application for medical practitioners.

The digital reference number is valid for up to 12 months and can be used only once by a medical practitioner for digital submission.

Part B cannot be completed by the applicant. If the applicant completes Part B personally, the CRA will not process it.

Can you start the DTC application by phone?

Yes. The CRA allows Part A of the digital application to be completed by phone. The applicant must be able to confirm their identity. After Part A is completed, a reference number is provided for the medical practitioner to use when submitting Part B digitally.

How to apply using the paper Form T2201

You may apply by mail using the current paper version of Form T2201.

1. Download or obtain the current Form T2201.
2. Complete Part A.
3. Sign the required applicant authorization section.
4. Give the form to the appropriate medical practitioner.
5. The practitioner completes Part B and signs the certification section.
6. Check that all mandatory information is complete and readable.
7. Mail Parts A and B together to a CRA tax centre.

For a paper application, the CRA states that required signatures must be handwritten. Missing mandatory information or signatures may cause the application to be returned.

Where do you mail Form T2201?

The CRA currently lists the following tax centres for paper DTC applications:

• Jonquière Tax Centre: 2251 René-Lévesque Blvd, Jonquière QC G7S 5J2.
• Sudbury Tax Centre: Post Office Box 20000, Station A, Sudbury ON P3A 5C1.
• Winnipeg Tax Centre: Post Office Box 14000, Station Main, Winnipeg MB R3C 3M2.

Keep a copy of the completed application for your records.

Can you upload a paper T2201 through CRA My Account?

No. Current CRA instructions state that, as of July 14, DTC applications must be sent using the digital DTC application or by mail. The CRA no longer accepts DTC forms through the general Submit documents feature in CRA My Account.

If you have a scanned or PDF copy of a paper Form T2201, the CRA instructs you to print it and mail the complete paper application rather than upload it through Submit documents.

Can you apply for the DTC at any time?

Yes. You can apply for the Disability Tax Credit at any time during the year.

The CRA advises that submitting a DTC application at the same time as your income tax return may delay assessment of the return because the CRA reviews the DTC application first. To reduce the chance of that delay, the CRA recommends applying for the DTC before filing the tax return.

How much does it cost to apply for the Disability Tax Credit?

The CRA does not list a government application fee for Form T2201. However, your medical practitioner may charge a fee for completing Part B or otherwise completing the DTC application.

You are responsible for any practitioner fee. CRA guidance states that the fee may qualify as a medical expense for income-tax purposes.

How long does a Disability Tax Credit application take?

CRA processing times are not a single fixed number. The CRA provides a current targeted processing time through its processing-times tool.

An application may take longer if information is missing, if the CRA requests medical clarification or supporting documents, or if application volumes are higher than usual.

If additional medical information is requested during the review, the CRA states that the medical practitioner has 60 business days to respond.

How do you check your DTC application status?

Once the CRA has received a complete application, you can check its status in the progress tracker in your CRA account.

Possible statuses include Received, In progress, Information requested, Target completion date update, Completed and Tracking stopped.

When processing is complete, you can also view DTC eligibility information in the Benefits and Credits section of your CRA account.

What happens after you submit Form T2201?

The CRA reviews the complete application and compares the medical practitioner's information with the DTC eligibility criteria.

If more information is required, the CRA may contact the applicant or medical practitioner. After the review is complete, the CRA issues a notice of determination.

The notice explains whether the application has been approved or denied and, if approved, identifies the years for which the person is eligible.

What happens if the DTC application is approved?

If approved, you may claim the disability amount for the eligible year or years shown on the notice of determination.

DTC eligibility can be approved on a permanent or temporary basis. If the notice does not have an expiry date, you generally do not need to submit another Form T2201 unless the CRA asks for one. If eligibility has an expiry date, you will need to reapply when the approved period ends or if the CRA requests a new application.

You can view your eligibility period in your CRA account.

Can the CRA adjust previous tax returns after DTC approval?

Part A of the application allows an eligible applicant to ask the CRA to automatically adjust previous tax returns for applicable years if DTC eligibility is approved.

The automatic adjustment option applies according to the circumstances described on Form T2201. Some situations, including certain transfers of the disability amount to a spouse, common-law partner or adult dependant, may require a separate T1 Adjustment Request or other information.

Can a family member claim the Disability Tax Credit?

A supporting family member may be able to claim all or part of an unused disability amount transferred from an eligible person, subject to the tax rules for that relationship and support provided.

If a family member intends to claim a transferred amount, including their information in Part A of the DTC application can help the CRA process the request.

Do CPP disability benefits automatically qualify you for the DTC?

No. Receiving Canada Pension Plan disability benefits, Quebec Pension Plan disability benefits, workers' compensation or another disability or insurance benefit does not automatically make a person eligible for the DTC.

Those programs have different purposes and eligibility rules. The CRA separately evaluates whether the effects of the impairment meet the Disability Tax Credit criteria.

Do you need to be unable to work to qualify?

No. DTC eligibility is not based on whether the person can work. The CRA evaluates the effects of the impairment on the specific activities and criteria established for the DTC.

What if the DTC application is denied?

If the CRA denies the application, the notice of determination explains the reason.

You can compare the decision with the information on Form T2201 and the eligibility rules. If important medical information was not previously provided, you may ask the CRA to review the application and submit new or updated medical information describing how the impairment affects you.

You may also file a formal income tax objection. The CRA states that an objection must be filed within 90 days from the date of the notice of determination.

Common reasons a paper DTC application may be returned

The CRA may be unable to process a paper application if it is incomplete. Problems identified in CRA guidance include:

• missing applicant or legal-representative signature in Part A;
• missing medical-practitioner signature in Part B;
• missing mandatory information such as name, address, date of birth or SIN;
• a legal representative signing when the CRA does not have the required authorization documents;
• Parts A and B being submitted separately;
• signatures that do not meet the handwritten-signature requirement for the paper form;
• information that is incomplete or unreadable.

Disability Tax Credit application checklist

• Review the official CRA eligibility criteria before applying.
• Use the medical practitioner authorized for the relevant impairment category.
• Choose either the digital application or paper application, not both.
• Complete all required information in Part A.
• Include supporting family member information if a transfer may be claimed.
• Have the medical practitioner complete Part B.
• Use the same submission method for both parts.
• For a paper application, make sure all required signatures are handwritten and Parts A and B are mailed together.
• Keep a copy of the application.
• Monitor your CRA account for status updates or requests for additional information.
• Review the notice of determination before claiming the disability amount.