Filing Your Return -> Disabilities -> Disability Supports Deduction
Income Tax Act s. 64
Line 21500 Disability Supports Deduction
Note: Before tax year 2019, line 21500 was line 215.
Starting with the 2004 tax year, disability supports expenses (including attendant care expenses) may be claimed as a deduction from income on lthe personal tax return, for taxpayers who have incurred the expenses in order to:
The above requirements do not have to be met if you were entitled to receive, in the year, any federal provincial, or territorial government COVID-19 payments for which you have received a T4A or T4E slip, Employment Insurance benefits, Employment Insurance special benefits, or Quebec Parental Insurance Plan benefits.
Earned income for the calculation will include:
This measure is included in Bill C-30, Budget Amendment Act 2021, No. 1, tabled April 30, 2021.
Claiming the Deduction
This deduction reduces net income, which helps if the taxpayer receives income-tested benefits. The tax reduction for these expenses will be at the taxpayer's marginal tax rate. Unused expenses cannot be transferred to your spouse.
Another option is to claim these expenses under the medical expense tax credit. When claimed under the medical expense tax credit, the tax reduction is at the lowest tax rate. Medical expenses can be claimed on the tax return of either spouse.
For details on the expenses that qualify for this deduction, see the Canada Revenue Agency (CRA) information on Line 21500 Disability Supports Deduction, and their publication RC4064 Information Concerning People with Disabilities, which no longer includes Form T2201, disability tax credit certificate, which can now be certified by a nurse practitioner, for forms completed on or after March 22, 2017. The CRA form to be completed to claim the disability supports deduction is T929 Disability Supports Deduction.
The disability supports deduction includes qualifying expenses, less reimbursements not included in income, and less any of the expenses that were claimed under the medical expense tax credit. The expenses claimed are limited to the amount of income earned from employment, self-employment, scholarships, bursaries, fellowships, and research grants (earned income), and additional inclusions (see above) for 2020 and 2021, re COVID-19.
Tax Tip: Expenses can be split between the disability supports deduction and the medical expense tax credit.
When the taxpayer has incurred the disability supports expenses in order to attend an educational institution, an additional amount may be claimed. This amount is limited to the lesser of:
Because of iii above, unless the taxpayer has income besides "earned income", there will be no claim for the education portion of the disability supports deduction.
Persons with disabilities - links to all information on TaxTips.ca
Canada Revenue Agency (CRA) ResourcesLine 21500 - Disability Supports Deduction
Income Tax Folio S1-F1-C1 Medical Expense Tax Credit
Income Tax Folio S1-F1-C2 Disability Tax Credit
Income Tax Folio S1-F1-C3 Disability Supports Deduction
Form T2201 Disability tax credit certificate
Tax Tip: You may be eligible for the refundable medical expense supplement.
Revised: May 01, 2021
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