Taxpayer in process of applying for DTC for their child.
I’m hearing this lengthy process will not be completed anytime soon.
Is it advisable to file the 2023 tax return without claiming the Disability tax credit or Canada Caregiver credit?
Perhaps the CRA will make adjustments for these credits later once the Dr submits the necessary document (form T2201)?
This is what I intend to have input on the dependents (child) worksheet.
Is this how others would proceed?
Never claim the DTC until you have the DTC determinaton.
CRA can adjust the T1 returns for the most recent assessed tax return and up to 9 years back, if the application requests it.
Transfers of the credit will have to be requested.
Actually, you CAN claim the DTC if it is process, and you are certain it will be approved. If the DTC is in process, CRA may delay the current year assessment until the DTC is processed. If the DTC application is denied, the tax credit will be removed from the tax return, and there may be interest charged if any tax was owing as a result.
It’s because of the prospect of interest I don’t claim it. I would be the one that would be asked to pay it!
Approved - good to go.
In process - not going there.
@Nezzer is correct, you may claim the DTC if it’s in process. CRA will just hold up the return until they finalize on their end, it’s not a huge deal. There is also an electronic submission option now through the client portal, where the client may fill part A of the form, and upload part B at a later date. Given this is completed, you may claim the DTC while in process.
Reminder - Disability Tax Credit
Before including the disability amount on an individual’s T1 income tax and benefit return, please ask your client if they have applied for the disability tax credit (DTC) before. Your client can give you the notice of determination that was sent to them. This notice will indicate if the Canada Revenue Agency (CRA) has determined that your client is eligible for the DTC and for which years. The DTC information that is available on My Account or Represent a Client (including the Client Data Enquiry page), can help you determine if your client is eligible to claim the disability amount.
The CRA needs a completed Form T2201, certified by a medical practitioner, to determine if an individual is eligible for the DTC. The T1 income tax and benefit return can only be processed with the disability amount after this determination is made.
Clients who are approved for the DTC don’t need to send the CRA a new form every year, unless the CRA asks for one.
If your client needs more information about the DTC, or the application process, they can visit Canada.ca/Disability tax credit.
Thank you for your continued collaboration in offering electronic services to taxpayers.
Thank you all for your helpful replies.
Glad to see CRA made the process more manageable/easier as @Deepinthemoneycall has pointed out via the electronic submission option.
Have a nice day!
