Disability tax credit: CRA makes updates to speed up applications

Canada’s privacy watchdog reports more than 42Ktax account breaches since 2020, citing CRA gaps in prevention, detection & delayed multi-factor authentication.

The Canada Revenue Agency (CRA) is updating the way it handles disability tax credit applications in order to speed up processing times.

In order to streamline processing, the agency is encouraging Canadians to apply for the federal disability tax credit through their online CRA accounts. Online applications can be processed faster and also help you avoid leaving out important information, the CRA says.

If you do not want to apply online, you still have the option to do so by mail, although processing times will likely be longer. To apply by mail, download and fill out the latest version of “Form T2201.” Once complete and signed by you and a medical practitioner, the form can be mailed to your nearest CRA tax centre.

Beginning July 14, applicants will also no longer be able to use the “submit documents” section of their online CRA accounts to send disability tax credit applications or related documents, unless the agency specifically requests more information. As of Sept. 8, versions of the disability tax credit form from before 2023 will no longer be accepted.

According to the CRA, the changes will help the agency validate applicant information more quickly.

“We believe Canadians deserve to feel confident, informed and supported when applying for the [disability tax credit] and interacting with the CRA,” the agency said in an announcement on Tuesday. “With your help, we will be able to validate your information more quickly which helps us process your application as fast as possible.”

The disability tax credit is non-refundable and designed to offset extra living costs associated with certain physical and mental disabilities. Those who are eligible can claim up to $10,138, with an additional $5,914 for people under the age of 18. You can find disability tax credit eligibility information on the CRA’s website.