Are You Getting This Big Diabetes Tax Credit?

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Author: Tristan Elliott

CRA Disability Tax Credit for Diabetes (DTC)

The Canada Revenue Agency (CRA) offers a non-refundable disability tax credit (DTC) of up to $1289 (in 2021) to individuals living with diabetes. Historically the conditions were extraordinarily stringent – based on the advocacy of the JDRF and other groups these conditions were relaxed in the Federal Budget 2021-Apr-19 (see this excerpt from page 590 for the fine print).  To qualify individuals living with diabetes who spend >14 hours per week on diabetes diligence listed below are likely to qualify.  Note, the last 2 italicized items were added 2021-Apr-19.

Testing sugar (blood glucose-monitoring & CGM)

Calculating insulin doses

Administering insulin

Logging sugar values & analysing for trends

Reasonable time spent determining dietary intake and/or physical

exertion to be considered part of therapy on a daily basis

Attending medical appointments to do with medication adjustment

Here is an example of a “time-spent” spreadsheet used by BCDiabetes patients who have previously been granted the CRA Disability Tax Credit for diabetes – note this example does not include the last 3 italicized items. Kindly do not ask me to share this spreadsheet – instead copy it (in Google Drive select File > Make a copy, or if you use Excel or another spreadsheet select File > Download As > Microsoft Excel, PDF, etc.  Note the spreadsheet has two pages; one for insulin pen (or syringe) users and the other for pump users.

Here is an example of a partially completed CRA Disability Tax Credit form.  Edit it for yourself, being sure to complete 1) on page 4 the year from which the 14+ hours per week condition has been met & 2) on page 5 the year(s) that you have been Dr. Elliott’s client.  Dr. Elliott will consider signing this document for his clients who provide a printed or pdf version of their own unique version (not a copy) of the “time-spent” spreadsheet described in the paragraph above if he considers it has been truthfully completed.   The charge for reviewing this documentation and signing the form is $50.  In addition to the above, the CRA is frequently sending me this letter asking me for essentially the same information with the addition of the “time-spent” spreadsheet.  The fee for completing this form is an additional $50.

Dr. Elliott is aware of a number of agencies who offer to help with the CRA Disability Tax Credit in exchange for very substantial commissions (20-30% of all proceeds).  Dr. Elliott recommends his patients NOT sign with these agencies unless their application for CRA Disability Tax Credit (using the forms above) is denied after following the process outlined above.

All individuals who are eligible for the DTC are also eligible for a Registered Disability Savings Plan (RDSP).  If you have an RDSP, you may also be eligible for grants and bonds to help with your long-term savings.