Form T2201 is the linchpin for The Disability Tax Credit (DTC). I cannot begin to describe how important this form is to our families. Unfortunately some new political realities are making it more difficult for families to apply.
A successful filing of the form T2201 will set your family up to apply for:
- The Disability Tax Credit
- The Child Disability Benefit
- The Home Buyers Amount
- Additional qualifying medical expenses
- Home Accessibility Tax Credit and
- Most importantly, the Registered Disability Savings Plan (RDSP)
It appears that the rejection rate is on the rise. We have all seen the news stories of families being rejected for the DTC, even if they have previously qualified. At first I thought this was simply a few families who did not fully complete their forms, but it looks like it going well beyond that.
Does This Mean You Shouldn’t Apply?
No!
It does mean that you need to be even more careful about how the form is completed and how your case is presented.
As one of my favorite bloggers (Big Canjun Man at the Canadian Personal Finance Blog) likes to point out; “If you don’t apply, you will never get the Disability Tax Credit”.
The updated T2201 Guide is available for download here. There is some additional guidance how far back the disability can be back dated as well as how to deal with the changing political climate. I strongly recommend that you read the document completely before sending it to the government. It is so much easier to deal with issues now rather than following a rejection.