Archives for TaxDetective

Qualified Medical Practitioners now have additional assistance via video explanations

  

CRA has added to their video collection, completing the full set of video’s about each of the different types of disability criteria.  These video’s are posted under the information available for qualified medical practitioners, look under the different types of medical conditions as this link:

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/qlfd-prcts/dtrmnng/menu-eng.html

Tip:  the criteria for disability is either the inability to function, all or substantially all of the time, as in 90% or more for a marked restriction … OR that it takes an inordinate amount of time to complete a function. 

If the patient doesn’t meet the marked restriction test, review for cumulative effect, as the effect of the impairment must meet a test of significant restriction, which equates to a marked restriction when two or more impairments are evident.  Cumulative effect is effective from the year 2005 forward and certification may be provided by physiotherapists in some cases, or certification by a combination of QP’s may be required.

Renovations tax credit doubles up with Medical Expenses Tax Credit in 2009 tax year

  

HRTC deadline January 31, 2010
2009 Budget: It’s possible to double dip into the Home Renovation Tax Credit (HRTC) and Medical Expenses where renovations relate to a lack of normal physical development or severe and prolonged mobility impairment! For details about the HRTC with links to the original budget, and subsequent information pages from various government departments, lists of what’s eligible and what’s not…Surf to HRTC and bookmark it to review next tax season

Before hiring a live-in or live-out caregiver, questions to be asked….

  

I just learned about a new service by the Minister of Labour.  Its called the Employer’s Advisor and the EAO helps with registration and claims if you are the employer.  In fact, call them before you contact WCB and they will walk you through the process.  Here’s what I learned:

The role of the Employers’ Advisory is to provide advice, education, assistance and representation to employers on WorkSafeBC issues. As we are independent from WorkSafeBC we can advise employers on a confidential basis about issues that they may be facing. We can provide expert advice on all areas of WorkSafeBC: Prevention (Occupational Health and Safety); Claims; and Assessments. We can assist employers with submissions or representation including attending hearings. We also provide education seminars to employers. As discussed, our services are at no charge, we are indirectly funded by the Worker’s Compensation system.

Our website for our course listing and other information is: http://www.labour.gov.bc.ca/eao/welcome.htm.  Our main contact number for businesses is: 1-800-663-8783.

Next time you are thinking about WCB coverage, call this number first.  BTW, there’s an article about hiring caregivers in The Tax Detective’s Useful Links.  If you are considering bringing in a live-in caregiver, this is a must read.  Caregiver Conundrum 

Disability Tax Credit DVD

  

The DTC DVD is now on TaxSpecialist Group website, courtesy of Peter Weissman, CA TEP of Cadesky & Associations, LLP in Toronto. http://www.taxspecialistgroup.ca/disability/en.htm Make sure you wait for the Video vignettes to upload.  It’s well worth the wait as they are funny and really do help to portray an impairment.  At the moment there are only three vignettes.  We are told that the rest are in progress, to be released later this year.  Check back for updates.

Disability Tax Credit makes you eligible for more claims

  

When adjusting for prior year claims for Disability Tax Credit (DTC), make sure you check your whole return and that of your spouse/partner each year.

It may be possible that your return may be adjustable for other claims not previously possible without the DTC.  There are various medical expenses that require the DTC and when you become eligible for the DTC, you also become eligible for those claims for therapy, respite, attendant care…etc.

Child care expense claims may increase as a result of qualification for the DTC.  In 2007:

The limits for a child for whom the disability amount can be claimed increase from $7,000 to $10,000 if born in 2007 or earlier.

If born in 1990 or earlier with a mental or physical infirmity for whom the disability amoutn can not be claimed, $4,000.

If you did not submit receipts for more than the usual limit, or even if you did submit receipts, but did not claim the increased amounts, it would be necessary to request an adjustment. 

You can’t rely on CRA staff to provide an automatic adjustment.  If you don’t ask for it, you won’t receive it.

 

How to find Child Care Claim Exceptions

  

Review T778 http://www.cra-arc.gc.ca/E/pbg/tf/t778/README.html

and Line 214 Child care expenses rules carefully!

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/214/menu-eng.html

Interpretation Bulletin IT495R3 goes into even more technical detail

http://www.cra-arc.gc.ca/E/pub/tp/it495r3/README.html

Here’s an example.  Mom has post-partum and can’t work or care for the children while dad works. Dad pays for child care and mom doesn’t earn any employment income.  Usually dad would not be able to claim the child care.  A letter from a doctor or psychologist or psychiatrist that establishes mom’s infirmity would mean that dad could claim the child care expenses.

Where to find ICBC’s Disability Discount

  

Disability Discount of 25% on your Basic Autoplan

If you are 16 or older, own or lease a vehicle and are a ‘person with disabilities’ you may qualify.

http://www.icbc.com/insurance/insura_savemo_disabl.asp

Seniors may qualify for both Seniors rate class (another 25% discount) and the Disability Discount (25%)

http://www.icbc.com/insurance/insura_savemo_senior.asp

Know the ‘certified in writing’ requirements for medical expense claims

  

Many of the medical expenses listed in RC4064 and on the CRA website require ‘certification in writing’ and that requirement is not published by CRA.

Find those requirements directly in the Income Tax Act, available for free on the Justice website or link to those sections thru the useful links to S. 118.2(2) and Regulation 5700 found on my website on the useful links page tab on the left at www.taxdetective.ca

TaxDetective

  

See www.taxdetective.ca for useful links, newsletters, tax tips and a link to a DVD created by CRA to explain to qualified medical practitioners how to complete the T2201 Disability Tax Credit Application Form. 

Eileen Reppenhagen, CGA has been advising CRA on disability tax administration since she volunteered in 2005 to serve on the Disability Advisory Committee.  The committee continues to meet monthly by teleconference with senior CRA officials.

Her work resulted in Box 85 on your T4 which may report your medical premiums paid to private health plans (optional) as the Canadian Payroll Association balked at the additional work…

In addition, T2201 DTC applications are now inventoried and accounted for and processed in record time.

The new RC4064 guide, revised every year to improve it, titled Medical and Disability Related Information includes over 130 medical expenses listing every single expense available, but not how to claim them.  Take care and review the Income Tax Act s. 118.2(2) and Regulation 5700 for actual wording before filing a claim as many require ‘Certified in Writing’ as of 2005 or 2006 amendments (not publicized).