The DTC is a non-refundable tax credit that helps reduce income taxes for people with disabilities. Until now one of the eligibility criteria from Canada Revenue Agency (CRA) is that a person must dedicate 14 hours per week for life-sustaining therapy.
Today Canadians living with type 1 diabetes applying for the DTC under Life-Sustaining Therapy will no longer be required to prove they spend at least 14 hours per week on activities related to administering insulin.
The cost of managing diabetes is significant and increasing. Those using insulin pumps and glucose monitoring systems may face out-of-pocket costs of more than $15,000 per year. Even Canadians who are eligible for public coverage or have employer-sponsored health insurance have significant out-of-pocket costs for the medication, devices and supplies required to manage this life-long condition. Studies show that these costs adversely affect the ability of some people to follow their prescribed treatment, resulting in increased risk of developing one or more of the serious complications such as heart disease, amputations or blindness, and thereby exacerbating the impact of the condition on the individual, their family, community, employer, and Canada’s health care system.
In June 2022, the eligibility criteria far the Disability Tax Credit OTC were expanded to include people diagnosed with Type I diabetes effective January 1, 2021.
These changes are now reflected on, both the paper application form and the digital OTC application.
Any person who applied and was denied the OTC under mental functions or life sustaining therapy since January 1, 2021, does not need lo reapply! Applications received on, or after January I, 2021, to June 23, 2022, will be reviewed under the revised criteria. For more information and forms you can visit the Government of Canada Website .
As the rules have changed please contact Smith & West CPA for current up to date tax advice about your situation.