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Reported Clawbacks on the Disability Tax Creditin Canadian Government News and Updates
It has been reported that some sufferers of mental health disabilities such as autism, bipolar disorder and schizophrenia have been denied access to the disability tax credit by the CRA after having received the tax credit for years.
According to the Financial Post article, “Ottawa accused of new tax grab after disability tax credit clawback hits those with mental illness,” by Jesse Snyder, several accountants, mental health associations and other advocacy groups have reported of restricted access to the Disability Tax Credit for mentally disabled people mainly because of a change in the language used to determine whether they are “adequately disabled to be eligible for the tax credit.”
According to John Power, the press secretary to the Revenue Minister, the CRA has made it easier to access the Disability tax credit by making the application forms shorter. They don’t, however, track approvals by medical diagnosis. In addition to this, the press secretary said that the CRA approves 80% of applications received - about 220, 000 applications are received every year.
The article mentions that part of the cause of the restricted access of the Disability tax credit is the fact that for mentally disabled people, their eligibility often expires without their knowledge – no notification from the CRA whatsoever. When they do reapply, many are denied and are then forced to appeal the decision.
This has certainly created a lot of stress for many Canadians with mental disabilities as the denial of their Disability tax credit will create more problems for them – they can lose access to the registered disability savings plan and they may have to pay back government grants and bonds that they received previously.
Are you one of the many Canadians denied access to the Disability tax credit? Let us know! We want to help!