I hear this statement often: “It’s too bad I didn’t know about the disability tax credit for my child before they moved out. It’s too late now.” This is not true.
You may still apply for up to 10 years’ funding retroactively. Some families have adult children who are living on their own, but the family is still ensuring they have enough food and continues to support them even though they are living in a different residence.
Many people help family members that reside elsewhere. If you are helping a family member has low income, they may not pay taxes, but you do, you may qualify for a refund. Canada Revenue Agency recognises family members as spouse, child, aunt, uncle, parent, nephew, grandparent, grandchild.
I had a client who had a son with a disability that moved out four years previously. The family continued to help the son each month, as he never had enough money to last a full month after paying rent. The parents helped with food, took him to appointments, bought him clothes, etc.
I was able to get the supporting family member a tax refund for the 10 previous years and part of my service to them was to direct them on how to get the full amount of child with disability benefits due to them retroactively. They had received the benefits for three years, but were unaware they were entitled to more and didn’t know how to go about receiving it. With my help, they received a retroactive seven additional years of child with disability benefits.
On top of the new seven-year refund they received, I found another unclaimed deduction. While reviewing their situation, I learned they could also claim for another family member they had been caring for in the past five years. They had claimed for one year but were entitled to 4 more previous years.
I helped the client re-apply for the past four years refund and was successful.
It is worth it to have the right disability tax credit specialist analyze your personal situation. Don’t assume you will be unsuccessful.
Nellie Krombach is general manager of Supportive Options & Solutions, serving all of B.C. To learn more, call 250-674-2416 or Contact Us.