Tax Credits If You Are Disabled With A Disabled Dependent

Tax Credits If You Are Disabled With A Disabled Dependent

In 2017, RBC Insurance released a statement predicting that long-term disability claims would rise by 4.7% in 2018. In 2016, Canadian businesses spent over $7.5 billion towards long-term disability coverage, making it the third-largest cost to group benefits plans after health and dental. Long-term disability claims are invaluable to Canadians, with a system put in place to help support those in need. But what if you find yourself as the primary caregiver for a dependent adult, such as a spouse, on long-term disability? And what if you yourself become disabled, and require long-term disability benefits in the process while neither of you can work? Are there any extra credits you may have access to?

There are a number of credits available for those with disabilities throughout Canada who are already receiving short- or long-term disability benefits. These are disability tax credits (DTC), and they exist for the sole purpose of reducing the amount of income tax those with disabilities or the people supporting them have to pay in a given year. So what are some of these tax credits, and would you or your spouse qualify for them?

Disability Supports Deduction

If you or your spouse, as the case may be, have a physical or mental impairment and have paid for certain medical expenses, you could qualify for the disability supports deduction. This is under certain circumstances, such as if you paid certain medical expenses in order to work at all, attend school, or perform research that afforded you a grant. This includes expenses such as Braille note-taking devices, deaf-blind intervening services, or job coaching services, for example.

Spouse or Common-Law Partner Amount

This tax credit can be applied if at any time during the year you supported your spouse or common-law partner financially, and their net income was less than $11,635. Under this tax deduction, you may also find yourself able to claim the caregiver amount, which could entitle you to the amount of $2,150, under certain circumstances.

There are a wide range of other tax credits that you can claim on your income taxes if you or your dependent spouse are disabled. You can claim things such as home accessibility expenses, medical expenses, and amounts for eligible dependents. If your spouse or common-law partner does not need to claim some or all of their non-refundable tax credits, they can be transferred to you under certain circumstances to lower your income tax in a given year.  

There are a wide range of disability tax credits available for those living with long-term disabilities and even short-term disabilities. Whether you are on long-term disability leave from work, or you have a spouse or common-law partner who is dependent on you due to their disability, there are options available to help alleviate some of the stress.


Has your long-term disability claim been denied? Contact Share Lawyers and put our experience to work for you. We offer free consultations and there are no fees unless we win your case. Find out if you have a disability case.

We have recently settled cases against  Great West Life, Desjardins, Manulife, RBC Insurance, Sun Life, and much more. We love hearing feedback from our clients, so please share your own experience with us.