I guess I'm lucky this time. It's me again.
The disability tax credit is a 15% tax credit on an amount of $8,800, so it provides about $1,300 in support through the tax system each year. This credit is meant to recognize that individuals with severe and prolonged disabilities can bear costs in their day-to-day living that others may not bear. For example, the costs related to specialized transport and, perhaps, modified clothing. These things can be difficult to itemize, but can have a real bearing on the costs a person with disabilities can face and their ability to pay taxes as a result.
What the government proposed in budget 2021 is that there would be two modifications to the eligibility criteria for the disability tax credit.
The first relates to individuals with mental impairments. Based on some feedback, largely from the clinical community as well as the disability advisory committee of the Canada Revenue Agency, which is chaired by a person who happens to be the chair of the Canadian Psychological Association, it was felt that the current criteria were not reflective of modern clinical practices—modern ways of assessing individuals with mental impairments. As a result, the list is being updated to include a broader, more expanded range that should give better clarity to clinicians, as well as to individuals with mental impairments as to how they may qualify.
The second element relates to individuals who may qualify because of a need to pursue life-sustaining therapy.