According to the experts at The National Benefit Authority, there are many benefits to hiring a tax preparer that specializes in disability claims, rather than working with a general tax preparation firm. This course of action is what a knowledgeable disability benefits expert would typically advise a client to take when coming to them for help with their tax benefits. There are many specific and complex steps involved in the tax preparation process for a taxpayer who qualifies for the Disability Tax Credit, and a general tax preparer might not be prepared to carry them out correctly. This long list of steps must be taken to properly prepare the Disability Tax Credit application:
- Become familiar with all the details and information regarding the Disability Tax Credit
- Gather all the required forms.
- Make sure you understand all the guidelines to help you decide what can and cannot be claimed.
- Consider the rules, regulations and special forms for the Child Disability Benefit, if applying for a child.
- Complete the Disability Tax Credit Certificate (form T-2201).
- Cautiously and comprehensively answer all questions (this requires careful reading of the entire questionnaire to understand the context of certain questions and the relevancy of certain terms that are used throughout it).
- Make sure you understand all the questions and the answers you have given, as you will have to defend your application once it has been submitted.
- Keep all your documents, including forms, applications, school documents, medical reports and correspondences organized in some sort of binder or folder.
- Have a qualified medical professional complete the relevant portion of the application for you, your child or the disabled person you care for.
- Complete the application and include a cover letter (your previous tax returns from the last decade are also assessed under the “Fairness Legislation”).
- Wait six to eight weeks for a response from the Canadian Revenue Agency, and appeal if your application is rejected.
As you can see, applying for the Disability Tax Credit is extremely complicated. Not only would this lengthy process be difficult for the average person to complete, it would also be difficult for a tax preparer that typically specializes only in general taxes. As the experts at The National Benefit Authority recommend, it is much better to work with a knowledgeable tax preparer that specializes specifically in disability claims.