Filing Your Return -> Disabilities -> Disability Supports Deduction
Income Tax Act s. 64
Line 215 Disability Supports Deduction
Starting with the 2004 tax year, disability supports expenses (including attendant care expenses) may be claimed as a deduction from income on line 215 of the personal tax return, for taxpayers who have incurred the expenses in order to:
This deduction reduces net income, which helps if the taxpayer receives income-tested benefits. The tax reduction for these expenses will be at the taxpayer's marginal tax rate. Unused expenses cannot be transferred to your spouse.
Another option is to claim these expenses under the medical expense tax credit. When claimed under the medical expense tax credit, the tax reduction is at the lowest tax rate. Medical expenses can be claimed on the tax return of either spouse.
For details on the expenses that qualify for this deduction, see the Canada Revenue Agency (CRA) information on Line 215 Disability Supports Deduction, and their publication RC4064 Information Concerning People with Disabilities, which no longer includes Form T2201, disability tax credit certificate, which can now be certified by a nurse practitioner, for forms completed on or after March 22, 2017. The CRA form to be completed to claim the disability supports deduction is T929 Disability Supports Deduction.
The disability supports deduction includes qualifying expenses, less reimbursements not included in income, and less any of the expenses that were claimed under the medical expense tax credit. The expenses claimed are limited to the amount of income earned from employment, self-employment, scholarships, bursaries, fellowships, and research grants (earned income).
Tax Tip: Expenses can be split between the disability supports deduction and the medical expense tax credit.
When the taxpayer has incurred the disability supports expenses in order to attend an educational institution, an additional amount may be claimed. This amount is limited to the lesser of:
Because of iii above, unless the taxpayer has income besides "earned income", there will be no claim for the education portion of the disability supports deduction.
Canada Revenue Agency (CRA) Resources- Income Tax Folio S1-F1-C1 Medical Expense Tax Credit
- Income Tax Folio S1-F1-C2 Disability Tax Credit
- Income Tax Folio S1-F1-C3 Disability Supports Deduction
- Form T2201 Disability tax credit certificate
Tax Tip: You may be eligible for the refundable medical expense supplement.
Revised: July 20, 2017
Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved See Reproduction of information from TaxTips.ca