Disability Tax Credit Appeals: Securing Benefits for Eligible Taxpayers
Navigate the DTC application and appeals process with professional guidance. Learn how to present medical evidence effectively and secure tax benefits for qualifying disabilities.
DTC Application Denied?
Don't give up on tax benefits you may be entitled to. Many initial DTC applications are denied due to inadequate medical evidence or improper application preparation. Professional appeals can often reverse these decisions.
Understanding the Disability Tax Credit
The Disability Tax Credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting family members reduce the amount of income tax they may have to pay. The DTC can provide significant tax savings and opens the door to other disability-related benefits and programs.
DTC Eligibility Categories
Mental Functions
- • Memory, problem-solving
- • Goal-directed behavior
- • Judgment and adaptive functioning
- • Verbal and non-verbal comprehension
Physical Functions
- • Vision, hearing, speaking
- • Walking, feeding, dressing
- • Bowel and bladder functions
- • Life-sustaining therapy
DTC Qualification Criteria
To qualify for the DTC, the disability must meet specific criteria established by the CRA:
- The impairment must be prolonged (lasting or expected to last at least 12 months)
- The disability must markedly restrict a basic activity of daily living
- The restriction must be present all or substantially all of the time (90% or more)
- Must be certified by a qualified medical practitioner
- The effects must be significant even with therapy, medication, or devices
"Markedly Restricted" Standard
Many applications fail because the medical practitioner doesn't properly understand the "markedly restricted" standard. This means taking an inordinate amount of time to perform the activity, even with therapy, medication, or devices.
Common Reasons for DTC Denials
Understanding why DTC applications are denied helps prepare stronger applications and appeals:
Inadequate Medical Evidence
Form T2201 not completed thoroughly or medical practitioner doesn't understand CRA's specific criteria and terminology.
Insufficient Detail
Vague descriptions of limitations without specific examples of how the disability affects daily activities.
Missing Supporting Documentation
Lack of comprehensive medical records, test results, or specialist reports to support the DTC claim.
Timing Issues
Application submitted before the 12-month duration requirement is met or without proper medical certification timing.
The DTC Application Process
Successfully obtaining the DTC requires careful preparation and attention to detail:
Step 1: Medical Certification (Form T2201)
- • Qualified medical practitioner completes certification
- • Detailed description of impairment and limitations
- • Assessment of duration and severity
- • Supporting medical documentation
Step 2: CRA Review Process
- • Initial review by CRA disability specialist
- • Possible request for additional information
- • Medical review by CRA medical consultants
- • Final determination letter issued
The DTC Appeals Process
If your DTC application is denied, you have appeal rights that must be exercised within specific timeframes:
Informal Appeal (90 days)
Request reconsideration by submitting additional medical evidence and explanations to address the reasons for denial.
Formal Appeal to Tax Court (90 days)
If informal appeal fails, you can appeal to the Tax Court of Canada where independent judges review the decision.
Critical Appeal Deadlines
You have only 90 days from the denial notice to file an appeal. Missing this deadline means losing your right to challenge the decision. Don't delay in seeking professional assistance.
Strengthening Your DTC Appeal
Successful DTC appeals require strategic preparation and comprehensive medical evidence:
Related Benefits and Credits
DTC eligibility opens access to additional benefits and programs:
Federal Benefits
- • Child Disability Benefit
- • Registered Disability Savings Plan
- • Medical expense tax credit enhancement
- • Home accessibility tax credit
Provincial Benefits
- • Ontario Disability Support Program eligibility
- • Property tax reductions
- • Transit fare assistance
- • Utility bill assistance programs
Don't Accept Denial Without Fighting
Many DTC denials can be successfully appealed with proper medical evidence and legal representation. Our experienced disability tax credit lawyers have helped hundreds of families secure the benefits they deserve. Don't let a denial prevent you from accessing critical tax relief.
Professional Representation Benefits
Working with experienced DTC professionals significantly improves your chances of success: