Disability Tax Credit

[AJ]

Harklive I just wanted to welcome you to the forums.

[harklive]

Thank you, AJ. Any assistance in the DTC process would be most helpful. It's nice to have the support of people who have been there.

[paul m]

Hello Harklive and welcome. When I said 90% of claims are approved on appeal, that was in regards to legitimet claims for a mental disorder, which in the past were almost always turned down. I am in no way saying that you do not have a legitimet claim, just I am no expert on your condition. I can direct you to some good websites on the subject as well as give a little guidance on what constitutes a good claim.

First thing is it doesn't matter what illness you have as far as the tax dept is concerned. The only thing that matters is the amount of disability as defined by them. Many people figure that if they collect some sort of disability payment that they will also be eligible for the disability tax credit. This is not so, not even if one is collecting Cda Penssion Disability.

So the first thing to do is to take the CRA's (taxmans) own quiz and see if you do indeed quailify. You can do this at. http://www.cra-arc.gc.ca/disability/

Second, you can read through the following website, while it is intended for a person with a mental disorder, you will be able to see how the taxman thinks. http://www.cpa.ca/cpasite/userfiles/...x%20credit.pdf

Third, from what little I know about your illness, you may want to look at what the Taxman calls the culmative effect. http://www.cra-arc.gc.ca/tx/ndvdls/s...cmltv-eng.html

Other than that, I can only advise you to document on a daily basis about how your illness restricts your life. I'm sorry that I cannot be of more help. Take Care. paul m

[harklive]

Hi Paul,

Thank you for your insight. Qualifying through not having the mental capacity necessary for everyday life seems like it's the most difficult category since it's so subjective. It's not as straightforward or as well understood as not being able to walk or see but it's just as difficult and life-altering.

Harklive

[paul m]

Hello Harklive. You are correct that it can be a difficult category. It is one that the Government used to dive through. However the courts have ruled that mental capacity takes in many things. For example some things that someone like myself takes as an everyday occurance can actually be quite difficult to deal with. It's just that we get used to them.

For example, many people on pain killers, mood stabilizers and/or a huge array of other medications have some of the following major problems.

Remembering. Being unable to remember simple things because our mind is clouded by medication, pain or mental disorder can mean that our everyday life is a lot more difficult than a person who doesn't suffer from any ailment.

Concentration, again this is an essential life skill. Without being able to concentrate it can be very hard to get through life, not to mention the fact that when we don't concentrate(or our concentration is riveted on making it through the day or living with the pain) it is litterally very easy to have major accidents even when walking. Without the ability to concentrate, short term decisions are difficult to make and long term ones impossible.

Long term decisions can be very hard to make due to our illnesses(physical or mental) when we have trouble getting out of bed, facing the day and coming to grips with how, when or if we are going to actually make it all the way to the kitchen to make breakfast. Without the ability to make long term decisions on a regular and timely basis, we can end up living under a bridge somewhere when we didn't find a new place to live after our lease was up. So again, another factor in determining whether or not we are eligible for the DTC. I hope that this additional info helps. Good Luck with your appeal. Take Care. paul m

[nunavutlight]

Thank you for the valuable info on this site. It is a fabulous resource.
I have a question that I have not seen on the site. My apologies if it has been addressed elsewhere and I've missed it.
Our young adult son has major depression that developed over a year ago. He lives with me and his drugs and psychology appointments were originally partially covered by my Sun Life extended health policy. Sun Life has now decided, apparently arbitrarily and with no warning, to stop this reimbursement. They have demanded that he applies for a Federal Disability Tax Credit, and that their decision on coverage will be based on the DTC result. I've filled out the DTC form out, read all your advice, and am about to give it to the doctor for his part. The doctor doesn't think the chance is good because of the requirement for "two activities of daily living" to be affected.

A couple of questions:
Has anyone had experience with this seemingly odd requirement by a health insurance company?
How long does it usually take for the gov't to assess the DTC request? (I'm assuming we will have to appeal).
Any and all suggestions are welcome!

(How does anyone who is ill and who is without close family support pull together all the paper work required and jump all the hoops of these insurance companies? It is like asking someone with a broken leg to run over the the tax office!)

Thanks SO much for any thoughts.

[AJ]

Welcome to the forums Nunavulight. I don't have any helpful information for you but I'm sure others who do will jump in.

[Kaight]

Hi!

I haven't any useful information as I haven't yet ventured to get any disability type credit. I wanted to say, however, that I appreciate your comment :

"How does anyone who is ill and who is without close family support pull together all the paper work required and jump all the hoops of these insurance companies? It is like asking someone with a broken leg to run over the tax office!"

It rings very true. It’s fantastic that you are there for your son. Due to his illness he may not be able to express his appreciation of your help. He may not even be able to experience appreciation. I speak form my own experience here. I guess everyone is different. Regardless, your commitment to his health is likely the most vital piece in the puzzle that is his recovery.

Take care (I mean of yourself too!)
Kaight

[nunavutlight]

Thanks Kaight. I appreciate your support. Thanks, AJ, for the welcome.

[A.E.V.]

welcome to the forum nunavutlight (if I've not already said it elsewhere)!
I do hope things work out for your son.

[paul m]

Hello Nunavutlight and welcome. It can be very trying to have a mental illness and try and get all of the forms completed.

In regards to the T2201(DTC), I cannot make a judgement here on what your doctor has said as I don't know the circumstances. However the CRA(tax dept) has a handy app that helps to determine if one qualifies or not for the DTC. http://www.cra-arc.gc.ca/tx/ndvdls/t...ns/q2-eng.html

However the largest confusion between the terms 'Markedly restricted" and " Significantly restricted". Markedly restricted only requires one function impairment. Significantly restricted requires two.

If you go to webpage http://www.cra-arc.gc.ca/tx/ndvdls/s...tml#mentalfunc At the top of the page you will see where it defines the definition between the Markedly and Significantly. Go about half way down that same webpage to the part where it deals with mental functions and it gives a very good description of Markedly restricted for people with a mental illness.

Examples put into laymens terms are , being a danger to commit suicide, being so down as not being able to get out of bed regularily, if left alone would neglect personal hygiene(it is really hard to brush your teeth or bath from bed) has Avolition problems(their words not mine, but it means a lack of motivation) , being unable to understand the consequences of there behaviour, or has severe memory problems.

Part of being unable to understand the consequences of their actions can be for example: they would become homeless if someone didn't help them with their forms. That someone can be a parent or a social worker.

I have said all of this badly, partly due to space limitations. The websites that I have outlined do a good job of explaining it all, but it takes time and a clear mind to asborb everything.(unfortunately).

CRA even has a section for doctors to help them understand how to complete the form, however the most common mistake is the difference between Markedly restricted and signifcantly restricted. As the CRA uses the two phrase repeatly it is easy to confuse the two.

In regards to dealing with the Insurance company. I can only suggest that you read the Mood Disorders Association of Ontario's guide on the subject http://www.mooddisorders.ca/guide/gu...erm-disability . It doesn't deal exactly with your son's problem, but it may give you some better ideas.

I'm sorry that I can't give you more precise answers, but I hope that this has been helpful. Take Care. paul m

[nunavutlight]

Paul, this has been incredibly helpful, because although I have looked at the forms until I'm blue in the face, the distinction between "marked" and "significantly" restricted had eluded me until you pointed it out. The links are very helpful too.

So grateful. And hope to be able to share any knowledge I gain in this process with others in the future.
Cheers!

[paul m]

Hello Nunavutlight. Thx for your kind comments. The T2201 is one of the most mis understood forms. Doctors are notorious for not filling them out correctly. The first person to look at it when it gets to the gov't level has little or no medical training, but is rather a clerk who has the initial yes or no.

Compounding the problem is that all too often our illnesses are of an unknown duration. One person may respond to the first antidepressant that they take, the next person may have to try 30-40 different combinations of medications to get better.

Plus, the doctor may be treating us for the wrong illness. In the short run, bipolar disorder, major depressive disorder, anxiety disorders and borderline personality disorder can all present the exact same sysmtoms(usually depression). It can take even a clever doctor a while to sort out the root cause. As all four require different treatments, major mistakes can be made that can affect us for mths and years to come.

Unfortunately, too many doctors put down that Mr Jones will return to work in 6 mths, when in reality it is unknown.

Good luck with your son's application. Please be sure and read the link that I gave you to the MDAO guide on long term disability. It may not be entirely applicable, but it does explainsome things well.

In closing, I will say that one of my most major mistakes in life was not hiring a quaility lawyer to fight for my rights when the insurance cut me off and my company let me go. Take Care. paul m

[nunavutlight]

Hi Paul,
Yep, I think the Ontario guide was informative, and interesting. I'm trying to divest myself of emotion and just deal with this the way i would a tax form - there are places to trip and holes to fall into.

And yes, I hear you regarding the medication odyssey - combo #5, I think, so far, and with one extremely nasty allergic reaction to buproprion after a single pill. The good news is that after a year, I think there is some improvement over the last month - this is the first time I've expressed this optimism.

I am so sorry to hear about your own situation. Human rights have a long way to come in Canada. And not just in mental illness. I've been working on a genetic disease for 20 years - many people with the condition can live essentially normal lives but are often denied life or health insurance. I sometimes feel that my working life would be worthwhile if I can obtain appropriate insurance on behalf of just one person... gggrrrrrrr! It is all part of the same flawed system.

On that cheerful note.... good night!

[uni]

Welcome to the forum Nunavutlight! Thanks for posting on a subject that is so confusing for so many people (myself included). I'll be interested in hearing how you and your son make out, and wish you the best of luck.

Although I retired this year, I'm now wondering if I may still benefit from retroactive tax credits. It's all so overwhelming to negotiate though. I'm not sure whether it's worth the mental stress and risks.

Paul, as usual you are a gold mine of information. If it wouldn't mess up your LTD and/or send you into a tailspin, I'd suggest you start a new career as a disability income consultant! Heaven knows they are needed.