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Disability Supports Deduction

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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:

bullet earn employment or self-employment income,
bullet attend an educational institution, or 
bullet do research for which a grant was received.  

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.  The CRA form to be completed to claim the disability supports deduction is T929.

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:

  1. $15,000
  2. $375 times the number of weeks in the year that the taxpayer was in attendance at the educational institution, and
  3. the amount by which the taxpayer's income for the year exceeds the income earned from employment, self-employment, scholarships, bursaries, fellowships, and research grants.

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

bullet

Income Tax Folio S1-F1-C1 Medical Expense Tax Credit

bulletIncome Tax Folio S1-F1-C2 Disability Tax Credit
bullet

Income Tax Folio S1-F1-C3 Disability Supports Deduction

bullet

RC4064 - Medical and Disability-related Information

bullet

Form T2201 Disability tax credit certificate

 

See also:

Persons with disabilities - links to all information on TaxTips.ca

 

Tax Tip:  You may be eligible for the refundable medical expense supplement.

 

Revised: December 18, 2014

 

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