Tax is a Family Affair!
Canadian MoneySaver Magazine hosted a free one hour webinar, with 40 minutes of Q&A from participants on March 29, 2014.  

View "Tax is a Family Affair" 

Part 1 https://www.youtube.com/watch? v=VEqKCMUjXgQ

Part 2 https://www.youtube.com/watch? v=9EyPV_86jGA

Click here for CRA's video series (Information for doctors and their patients, help with certification of disability for tax purposes)

 
Personal tax credits and benefit programs that rely on those credits impact on the family’s ability to maximize wealth; and, equally important, to minimize risk and tax. 

Eileen Reppenhagen is passionate about taxpayers rights about the rules. In 2005, she volunteered to advise CRA Benefits Administration about disability administration. The Disability Advisory Committee met three times formally, and informally almost every month from 2006 until 2010, when the Benefits Administrator retired. 

Tax credits aren't usually refundable, which is why it's so important for families to discover what support means and how credits are transferrable if support can be proven.

Persons with a disability should not be blocked from requesting the Form T2201 completion by doctors when provincial/territorial social workers erroneously believe that a claim by the family for the transfer of a tax credit will reduce eligiblity for provincial/territorial benefits, but it happens.

Provincial benefit programs often reward poverty instead of employment. Families may be marginalized by the simple fact they can't have any money in the bank, or display any ownership of assets without threat of reduction or elimination of benefits. The RDSP program was set up to address this, but it's far from successful because the province/territories aren't on board. Here's what PLAN reported about the Senate Committe report March 26, 2014

Persons with disabilities are blocked from accessing the RDSP plans by provincial/territorial lack of concern about setting up laws that would support legal representation. See the federal budget commentary this year for how politicians at the provincial/territorial level haven't stepped up to make the RDSP accessible across the country. 

Box 85 which reports premiums for extended health and dental plans on your T4 (not mandatory yet) is just one of the many improvements in how CRA communicates with taxpayers. This year, a new box, Box 135 was added to the T4A to report EH&DB premiums paid by federal government employees. Next year RCMP retirees will see this Box on their T4A pension reporting.

See these CRA videos that show disability definitions for walking, speaking, etc.

These videos were created specifically for doctors, the Qualified Medical Practitioners to provide understanding and compassion to families seeking to complete the necessary paperwork to be entitled to claim a transferrable credit. Yes, doctors bear the brunt of our current system, it's as if the government threw families and their doctors off the same bus where tax credits were concerned. With over 150 medical expenses, most requiring certification in writing, plus disability, and now infirmity documentation, it's complex, and its absurd.toto to 

Key information
RC4064 Medical and Disability Related Information
TD1 forms
T1213 Request to reduce tax deductions at source
T2201 Disability Tax Credit Certificate
Medical Expenses - eligible in alphabetical order

These four medical expenses require the DTC:

  • Attendant or nursing home care (S.118.2(2)(b))
  • Attendant up to $10,000, $20,000 in year of death (S.118.2(2)(b.1)
  • Group home (S.118.2(2)(b.2)
  • Therapy (S.118.2(2)(l.9))

And in a year of transition from attendant care to nursing home or full time attendant, it's one or the other but not both and only the attendant care can claim the DTC in the same year.

T929 Disability Supports Deduction (2005 & later)
IT 513 Personal Tax Credits
Tax Tips What's New?
Articles and Links (Useful Links Personal)

You may want to bookmark this page!

Canada Benefits
CRA: Persons with Disabilities
Quebec Tax Credits
PWD Online
Veterans Affairs
Can you claim the disability amount for dependent?
Youth in Transition
Line 316 Disability - self
Line 318 Disability - transfer from dependent

there's a supplement to the disability amount, clawed back by child care or attendant care paid for that child.  You won't find it on the TD1 and in the tax software it calculates in the background in the dependent window. 

Medical Expense Tax Credit
What can PWD claim as a deduction or credit?
Moving
Moving, Renovations & New Construction
Travel Expenses for Medical Expense

S. 118.2(4) is where you'll find the deemed payment of medical expenses exception to S. 118.2(2)(g) 

This exception provides for when someone engaged in the business of proviidng transportation is not readily available and someone makes their own vehicle available 

Deductions from Income
T778 Child Care Expenses Deduction

Note that it's $10,000 with DTC approval, and remember to review if lower income parent is infirm, in school, hospital or jail (yes, jail)

Disability Supports Line 215
Other programs
Child Disability Benefit (CDB)
Children's Fitness Supplement
Death of RIF Annuitant - Qualified Beneficiaries
Death of RSP Annuitant - Qualified Beneficiaries
Employer Benefits and Allowances

Benefits paid to or for persons with disabilities will not create a taxable fringe benefit ITA 6(16) if employee is certified by T2201 to be a person with a disability. Includes actual cost or reasonable allowance for transportation to / from work and cost of attendant to assist person with disability in performance of duties

HBP

RC4135 Home Buyers Plan (HBP)

Home Reno Tax Credit
Preferred beneficiary election IT 394
RDSP

www.rdsp.com

www.plan.ca

Renovations by landlords/employers

Landlords - See T4036 rental Guide, Capital expenses, special situations. Renovations to Income Producing Buildings to allow access (landlords and employers) are a current expense, not capitalized for ramps, door openers, widening doorways, bathrooms, elevators, doorways and prescribed devices including elevator car position indicators, visual fire alarms, listening devices for group meetings or telephone devices for hearing impairment; software and hardware attachments

  • (ITA 20(1)(qq),(rr)
  • IT Regulations 1102(1)(a), 8800, 8801
RMES Line 452
WITB
Fuel Tax Refund Program:Persons with Disabilities
Refund of Federal Excise Tax on Gasoline
Definitions
Who is a Dependant? ITA S. 118(6)
Definition of dependant

(6) For the purposes of paragraphs (d) and (e) of the description of B in subsection 118(1) and paragraph 118(4)(e), “dependant” of an individual for a taxation year means a person who at any time in the year is dependent on the individual for support and is




  • (a) the child or grandchild of the individual or of the individual’s spouse or common-law partner; or




  • (b) the parent, grandparent, brother, sister, uncle, aunt, niece or nephew, if resident in Canada at any time in the year, of the individual or of the individual’s spouse or common-law partner.




Definition of Infirmity

Relief of Aged - Charity Policy CPS 002: See Footnote 1 for definition: Infirm means not firm or sound physically, weak, especially from age, feeble: weak of mind.

Qualified practitioners

References to medical practitioners, S. 118.4(2),For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist, or speech-language pathologist is a reference to a person authorized to practise as such,

(a) where the reference is used in respect of a service rendered to a taxpayer, pursuant to the laws of the jurisdiction in which the service is rendered;
(b) where the reference is used in respect of a certificate issued by the person in respect of a taxpayer, pursuant to the laws of the jurisdiction in which the taxpayer resides or of a province; and
(c) where the reference is used in respect of a prescription issued by the person for property to be provided to or for the use of a taxpayer, pursuant to the laws of the jurisdiction in which the taxpayer resides, of a province or of the jurisdiction in which the property is provided.

Note: Speech language pathologists are not licenced in BC...

Qualified practitioners by province/territory
Public Service Health Care Plan list
Official References
ITA S. 118.2(2) Medical expenses

S. 118.2(2)(m) refers to devices and equipment found listed in Reg 5700 (below)

ITA Reg 5700 Device & Equipment
ITA S. 20(qq)&(rr) Disability: business deductions

S. 20 (qq) and S. 20 (rr) refer to Reg 8800 and 8801 below


ITA Reg 8800 8801 Disability related modifications
ITA S. 118.4 Nature of impairment


Note that the ITA uses the word impairment, not disability...


ITA S. 64 Disability Supports Deduction
Private Health Services Plans (PHSP's)
PHSP's for Self-employed persons

T4002 is the guide for Business and Professional Income for self-employed or professional or commission sales persons who file a T2125 to report their income on a T1.


There is a very comprehensive section on PHSPs (yes, it's a line on the T2125 form) and in the T4002, you'll find it by scrolling beyond Line 9270 – Other Expenses.


Click on the link, under Expenses, find Line 9270 and scroll down from there to see the whole instruction set as to what you can claim, depending on whether or not you have employees, and how much you make or what percentage of what you make is self-employed. Like I said, it's very comprehensive.


IT339 Meaning of PHSP


See also ITA S. 248(1) which has definitions and ITA S. 6(1)(a), 18(1)(a) and 118.2(2)(q) and 118.2(3)(b)


Olympia Benefits Inc.
Blue Cross Canada
Pacific Blue Cross
ICBA: Construction Industry Benefit Plan

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