Does ADHD Qualify For Disability Tax Credit In Canada?
There was a time when many people weren’t aware of ADHD – Attention Deficit Hyperactivity Disorder. But now times have changed. People know about this disorder, and there are conversations happening. But the one thing that is still confusing for many Canadians is: Does ADHD qualify for disability tax in Canada?
Let’s find out in this blog.
To start with the basics, we need to understand first about the Disability Tax Credit first. The Disability Tax Credit (DTC) is a non-refundable tax credit in Canada that is especially designed to help individuals with severe, prolonged physical or mental impairments to reduce their income tax burden. As per the guidelines of the Canada Revenue Agency (CRA), the impairment must significantly restrict the basic activities of daily living or have an equivalent effect on the person. For you to be eligible for the disability tax, a medical practitioner must complete and certify the T2201 to confirm the physical or mental impairment.
To know more about DTC and whether ADHD qualifies for disability tax, you can get in touch with us – Taxccount Canada. Our highly professional and qualified team is there to guide you and help you with customized tax accountant services.
Does ADHD Qualify for Disability Tax Credit?
Yes, it does qualify, but it is not as simple as it looks. Many disability-credit specialists identify ADHD as a potential qualifying condition for the DTC. It falls under the category of impairment of mental functions. However, simply being diagnosed with ADHD is not a guarantee that you will be eligible for the disability tax in Canada.
What Criteria Must Be Met for ADHD to Qualify?
The following criteria need to be met to qualify for DTC in Canada –
Severe and Prolonged Impairment
The impairment should be both severe and prolonged (expected to last or have lasted at least 12 consecutive months).
Marked or Significant Restriction
The individual should be markedly restricted in at least one basic activity of daily life
Or
Have significant restrictions in more than one daily living activity, whose combined effect is equivalent to being markedly restricted.
Impact On Mental Functions
For people with ADHD, it is not enough to simply have trouble paying attention or being impulsive; the impairment must significantly affect mental functions that are necessary for everyday living, like memory, problem-solving, judgment, regulating your emotions, goal-setting, concentration, and adaptive functioning.
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☎️ Get Help!Challenges Specific to ADHD
Now that you know what the criteria are that help ADHD qualify for DTC in Canada, it is important to know certain challenges.
High Bar On ‘Markedly Restricted’
A lot of people suffering from ADHD may manage well in their daily life (especially with early diagnosis, lifestyle changes, and right treatment) and thus, they may not meet the ‘markedly restricted’ or ‘equivalent to markedly restricted’ standard set by the CRA.
Documentation Complexity
To get a DTC claim for ADHD, you need detailed medical records. These should include specific examples of how your ADHD affects your daily life. For example, how often your concentration lapses, how your memory is impaired, and how you cannot or find it challenging to regulate your emotions.
Subtypes of ADHD
There are different types of ADHD: inattention (ADD), hyperactive-impulsive, and combined type. Each of these has its own symptoms and can influence your DTC application.
Treatment Doesn’t Qualify You
In a lot of cases, even if ADHD is managed well with the help of medication and therapy, it doesn’t rule out eligibility. What matters the most is the underlying impairment and the effect it has on your daily life. h
Why are some ADHD Claims Denied?
Here are some of the most common reasons for ADHD claims to be denied for disability tax credit in Canada –
Subjectivity of ‘Restriction’
People don’t realize that the terms ‘markedly restricted’ or ‘significant restriction’ can be subjective. The CRA may interpret an individual’s functional capacity differently as compared to their doctor.
Inadequate Medical Certification
If you don’t fill out the T2201 form correctly, or the certifying medical practitioner does not give concrete examples of how ADHD is affecting your daily life, then CRA can reject your claim.
Interpreting Mental Functions
CRA assesses the mentioned functions that are necessary for everyday life, and these do not include work, recreation, or social life. The CRA looks for very specific abilities like memory, goal-setting, problem-solving, and emotional regulation.
Several Appeals May Be Needed
Some people have said that their initial claims were denied, but when they re-applied, or applied with more intensive documentation, it was a success.
Benefits When ADHD is Approved For DTC
You may get the following benefits –
- You may apply retroactively (usually this is for up to 10 years), which can give you a significant tax refund.
- Eligibility for the DTC can open avenues for other supports, like the Registered Disability Savings Plan (RDSP).
- You can transfer the credit to a supporting person if the person with ADHD doesn’t have enough taxable income.
While ADHD can qualify for the Disability Tax Credit, it is not automatically eligible. Several factors need to be considered – diagnosis, severity, and persistent ADHD affects your daily life functions. The more detailed and concrete evidence you provide, with the right medical documentation, the higher the chances of you getting approved.
