Income Tax season is upon us, and we’d like to offer some tips for individuals and families who have suffered from personal injury to help maximize their returns. If there is someone you know that could benefit from this information, please pass it along.
Here are a few options for injured parties & families to be mindful of when completing their tax returns:
Income Replacement Benefits
– These benefits received from the insurance company are not taxable, and therefore do not need to be declared.
Disability Tax Credit
– A disability tax credit can be claimed if a qualified person (usually a medical doctor) certifies that an individual has a severe and prolonged mental or physical impairment which markedly restricts the ability to perform a basic activity of daily living. To apply for the disability tax credit, have your doctor complete Form T2201 – Disability Tax Credit Certificate. This form has sections on various types of physical or mental impairments.
Canada Caregiver Credit (CCC)
– If you have a dependant with a physical or mental impairment, you may be eligible for this non-refundable tax credit. The amount you can claim depends on a few criteria such as your relationship to the person, the individual’s net income and if credits are already being claimed for that individual. Please visit Canada Revenue Agency – Canada Caregiver Credit for more information.
Medical Expense Tax Credit
– This tax credit can help pay for eligible medical expenses for yourself, your spouse or common-law partner and your dependant children. Please visit Canada Revenue Agency – Medical Expense Tax Credit for more information.
If you are self-employed, please let us review your Income Tax Return before you submit to CRA.
Please feel free to call us at 416-203-1115 if you have any further questions about any of the above tax credits or filing a return. We are here to help.