A client wants to claim part of mother’s DTC. I confirmed mother’s DTC status and listed mother as a dependent and recorded her income. The 2024 NOA says CRA doesn’t have T2201 on file. Is this one of the known issues with CRA? I checked 2023 NOA and it says the same. Anybody having this issue?
I had a similar issue like that, wanted to claim a dependent’s DTC, but for some reason, the program I used, claimed DTC for the client instead, so CRA was saying, doesn’t have the client’s T2201, not the dependent’s
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The CRA has to know who is allowed to claim the Disability Tax Credit for a given Disabled person. Once they have that on file the credit will be allowed. Call the CRA and get the mother’s disability tax credit authorization added to the clients file.
The tax program has to recognize the dependent as a dependent. Their tax return linked to yours and maybe their address the same as yours.
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Funny about this, seems we know there is a problem, but we just have to run into the problem before CRA can fix it. A client has been claiming DTC from child for year, and 2024 was the first time spouse had higher income and claiming DTC from child. I called CRA, for some reason, was told, file the return, once it’s assessed, or rejected, then do a T1 adjustment to claim the DTC transferred, without the T2201, as it was approved on the higher income spouse previously already. My question is, my original T1, was with the DTC already, if CRA rejected that, there is nothing for me to adjust with my original file. Can I do a T1A without changing anything on my taxcycle and just noted the T2201 transfered from dependent?
How CRA maintains the DTC certificate on file and to whom it provides access to the DTC info has changed over the past many years.
The default situation is that the holder of info about the DTC is the person who applied for the DTC claim.
If it is for self then the person with the disability and their authorized tax representative have access to that info.
If it is for a spouse or for a minor dependent then the person who originally filed the claim for with the disability transfer and their authorized tax representative have access to that info.
DTC claim for self and DTC transfer procedural complications can arise in the following circumstances:
1) Temporary Disability - DTC must be renewed before expiring date with a whole new application at or after expiry and before tax return filing.
2) Adult Child claiming Parent DTC- DTC for parent must be documented and approved based on that or those tax year procedures. The requirements for this has changed over time. If the Parent applied for and claimed the DTC for self in prior years, then the adult child needed to reapply to DTC processing to be approved for the DTC transfer. The procedures for this have change several time over the past two decades. Most recently CRA has requested details and documentation to support the manner, dates, activities, and type of support provided by the Adult Child to the DTC parent.
3) Custodial Single Parent claiming minor Child DTC after separation or divorce - If the non custodial parent made the original application, then, in the past, the custodial parent had to prove custody, and, file a new, full DTC claim. In the past CRA declined to transfer the DTC based on the child because the DTC record was linked to the non-custodial parent. Marital Status Change, Child Custody Agreed, physical child custody dates log, and DTC support requirements and activities needed to be documented and approved. In the case of Joint Support a calendar log of custody dates were required in the past. These logs and claims affect CTB, DTC claim, DTC transfer, eligible dependent claim, GSTC, and more.
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Thanks for the info.
Just to update on what happened here, thank god, CRA reassessed the return without any issue, except took couple more weeks, maybe they realized it’s silly process to hold return for that reason. I think it does add some kind of assurance to the system, but filing together should be an indication that spouses are not separated . I am glad my issue was settled.