It’s not uncommon for one of your dependants (other than your spouse or common-law partner) to be eligible to claim the disability amount. As you prepare their return(s), you might notice that they don’t need to claim their entire disability amount. If that’s the case, you might be able to use their remaining non-refundable credit to reduce your own income tax payable.
Of course, this transfer can only be done under certain conditions. For example, your eligible dependant must have an approved T2201: Disability Tax Credit Certificate on file with the Canada Revenue Agency (CRA) stating that you’re the one claiming the disability amount. If you decide not to attach a T2201 to your return, the CRA will also accept a note containing your dependant’s name, SIN, and relationship to you.
Note: If you want to claim your dependant’s disability credit but the CRA doesn’t have an approved T2201 on file, you won’t be able to NETFILE your return. Instead, you’ll have to file a paper return and attach a completed T2201.
Tax tip: Is your dependant under the age of 18? If so, you might also be able to claim a supplemental amount on their behalf.
Residents of Québec should complete a Certificate Respecting an impairment (TP-752.0.14) and submit it to Revenu Québec for their records.
Am I eligible?
To be eligible, your dependant must have lived in Canada at some point during the year and relied on you to provide the basic necessities like food, shelter, and clothing. In addition, one of the following must also apply:
- You claimed an Amount for an eligible dependant (or could have if you didn’t have a spouse and if your dependant had no income) or
- The dependant in question is your or your spouse’s parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew and you claimed either the Amount for an infirm dependants age 18 or older or the Caregiver amount (or could have if your dependant had no income and was over 18)
There are certain situations in which you can’t claim the disability amount of a dependant. For complete details, refer to the CRA’s website.
Note: Remember, if you’re eligible to claim the federal disability amount transferred from a dependant, you’re also entitled to claim a corresponding provincial tax credit, which might vary in amount depending on which province or territory you live in:
- British Columbia
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Prince Edward Island
Can I split the disability amount with someone else?
You absolutely can! All you have to do is attach a note to your paper return that includes the personal information (name and SIN) of the other supporting person that’s claiming this amount. Remember though that the total claimed between the two of you for that dependant can’t be more than the maximum allowed.
Where do I claim this?
Before you begin, make sure that you’ve told us about the dependant(s) from whom you’ll be transferring the disability amount. To do this:
1. On the GET STARTED tab, click the ABOUT YOUR DEPENDANTS icon.
2. In the spaces provided, enter all the required information about your dependant. If you want to add more than one dependant, click the +Add Another Dependant button on your screen.
Once you’ve told us about your dependant(s), follow these steps to transfer the disability amount:
1. Click the name of your dependant on the left-hand navigation panel. You’ll find yourself here:
2. Under the Transfer amounts heading, select the checkbox labelled Disability amount, then click Continue.
3. When you arrive at the Disability amount page, answer the questions to find out if you’re eligible to claim your dependant’s disability amount. Once confirmed, enter your information into the tax software.
4. Click the WRAP-UP tab and navigate to the OPTIMIZATION icon.
5. On the Credits and claims page, respond to the question Who do you want to claim the disability amount transferred from a dependant?