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New report provides recommendations for The Disability Tax Credit

15 June 2016
A new report published by The School of Public Policy at the University of Calgary titled The Disability Tax Credit: Why it fails and how to fix it explains the limitations of the disability tax credit and provides recommendations on how to improve it. 
The disability tax credit is currently only helping a small number of Canadians living with a disability because those who qualify need to earn enough income to owe taxes. However, people living with a disability often have low incomes because their disability leaves them unable to work in full-time, well-paid jobs. This results in a large number of Canadians living with a disability needing this support, but not receiving it or receiving an average of only $29 annually.
The report recommends changing the tax credit to make it refundable. Canadians living with a disability who qualify for the credit but lack sufficient income to benefit from it could be made eligible for a refund of the amount they cannot claim. This change would increase the average benefit from $29 to $511 and increase the 0.2 per cent of families receiving the benefit to 56.4 per cent. The report further explains that this change could increase income for families with a disability by 27 per cent.  
Read the full report to view statistics on the current take up of this benefit, estimated costs for improving the program, and how this enhanced credit could make a significant difference in the lives of Canadians with disabilities living on low incomes.