A Guide to

Income Taxes

and Benefits

(2020)

A Guide to Income Taxes and Benefits (2020 Tax Year) 1

OUR MISSION

To empower and connect the MS Community to create positive change.

We will have achieved our mission when:

1. The cause and cure for multiple sclerosis are identified in the shortest possible time.

2. People with MS have the opportunity to participate fully in all aspects of life.

3. The Canadian public is fully aware of MS, the MS Society and what it does.

4. All necessary activities of the MS Society are adequately funded.

5. The volunteers and staff of the chapters, division and national organization are working together effectively towards our common mission.

A Guide to Income Taxes and Benefits (2020 Tax Year) 2

A Guide to Income Taxes and Benefits (2020 Tax Year) 3

CONTENTS

FOREWORD .......................................................................................................................................6

How To Read This Guide .....................................................................................................................7

Disclaimer ..........................................................................................................................................8

A GUIDE TO INCOME TAX AND BENEFITS (2020 YEAR).....................................................................9

A-1 Caregiver Amount .......................................................................................................................9

A-2 Family Caregiver Amount .......................................................................................................... 10

A-3 Spouse or Common-Law Partner Amount (Line 303) .................................................................. 10

A-4 Amount of an Eligible Dependant (Line 305) .............................................................................. 10

A-5 Amount of Infirm Dependants Age 18 or Older (Line 307) .......................................................... 11

A-6 Disability Amount (Line 316) ..................................................................................................... 11

A-7 Medical Expenses (Line 330 or 331) ........................................................................................... 12

A-8 Refundable Medical Expense Supplement (Line 452) ................................................................. 12

A-9 Attendant Care (at home or in an establishment) ...................................................................... 13

A-10 GST/HST Exempt Goods and Services ................................................................................. 13

A-11 BC Seniors’ Home Renovation Tax Credit ........................................................................... 14

B GETTING AUTHORITY TO HANDLE FINANCIAL AFFAIRS ............................................................... 15

B-1 Authorizing or Cancelling a Representative ............................................................................... 15

B-2 Nidus Personal Planning Resource Centre and Registry .............................................................. 15

B-3 People’s Law School ................................................................................................................. 15

B-4 Agreement to Administer Federal Pension Benefits ................................................................... 15

C TIPS FOR FILLING OUT THE DISABILITY TAX CREDIT FORM .......................................................... 16

C-1 Eligibility Criteria ...................................................................................................................... 16

C-2 Tips for Filing out the Disability Tax Credit Form ........................................................................ 17

C-3 I have received the DTC for several years. Won’t I automatically qualify if I am reassessed? ....... 18

C-4 If I received CPP or QPP disability benefits, will I automatically qualify for the DTC and vice versa?

18

A Guide to Income Taxes and Benefits (2020 Tax Year) 4

C-5 The Appeal Process if You are Denied or Disqualified ................................................................. 18

C-6 What can I do if I lose my appeal? ............................................................................................. 19

C-7 Who can assist me? .................................................................................................................. 20

C-8 What is the Multiple Sclerosis Society of Canada doing to make the DTC process fairer for people

with MS ........................................................................................................................................... 20

D REGISTERED DISABILITY SAVINGS PLAN ..................................................................................... 21

D-1 Eligibility Information ............................................................................................................... 21

D-2 Application Information ............................................................................................................ 21

D-3 Who can open an RDSP? ........................................................................................................... 21

D-4 Additional information ............................................................................................................. 23

E MEDICAL EXPENSE TAX CREDIT FOR PROCEDURES AND SERVICES RECEIVED

OUTSIDE OF CANADA ........................................................................................ 25

E-1 Medical Services Expenses ........................................................................................................ 25

E-2 Travel and Transportation Expenses .......................................................................................... 25

E-3 Additional Resources ................................................................................................................ 26

F ADDITIONAL RESOURCES ........................................................................................................ 28

F-1 Community Volunteer Tax Program .......................................................................................... 28

F-2 Employment Insurance (EI) Compassionate Care ....................................................................... 28

F-3 Disability Benefits Help Sheets .................................................................................................. 28

F-4 Persons with Disabilities (Canada Revenue Agency) ................................................................... 28

F-5 TaxAid for People with Disabilities and their Caregivers ............................................................. 28

F-6 Burnaby Neighbourhood House ................................................................................................ 29

F-7 Salvation Army, Langley Community Church – Family Services ................................................... 29

F-8 The MS Society’s Volunteer Legal Advocacy .............................................................................. 29

G MS SOCIETY RESOURCES ........................................................................................................... 30

G-1 Information/Support/Advocacy ................................................................................................ 30

G-2 Education ................................................................................................................................. 30

G-3 Practical/Financial Support ....................................................................................................... 30

A Guide to Income Taxes and Benefits (2020 Tax Year) 5

A Guide to Income Taxes and Benefits (2020 Tax Year) 6

FOREWORD

This publication is provided by the Multiple Sclerosis Society of Canada BCY Division. This guide

provides Chapter members with some basic tips that may be particularly useful for people with

Multiple Sclerosis and their families. These include a host of financial assistance benefits like tax

credits, supplements and deductions, and medical expense reimbursements. Because of the

exceedingly complex and often confusing nature of income tax, the following guide was

developed to help provide a little more clarity of how it all works, who’s eligible, and some of

the associated benefits. While not every resource provided in this guide will be suitable for you,

we hope that the information you find here may be helpful in answering some of your

questions.

Please note that this information is a summary only and is not a complete list. It is meant to

alert persons with Multiple Sclerosis and caregivers about some options they may want to

consider discussing with their tax preparer. For complete information, please contact the

Canada Revenue Agency (CRA) by calling 1-800-959-8281 or visiting their website at:

www.cra.gc.ca. Income tax rules are complicated and change every year, so we encourage you

to get professional help with your taxes.

A Guide to Income Taxes and Benefits (2020 Tax Year) 7

We would like to acknowledge and thank the Alzheimer Society of British Columbia for providing us with

the resources to create this guide. We would also like to thank our dedicated Board Members, Jason Low

and Craig Elliot, for their insight and guidance in the formation of this publication.

How To Read This Guide

This Guide to Income Tax and Benefits comprises of a wide variety of information and services that may be particularly useful for people with Multiple Sclerosis and their families and caregivers. View the Table of Contents for a full overview of the listings of this publication.

The organization of this guide is as follows:

• Each section is designated a letter. For example, “Guide to Income Tax and Benefits

(2014 Year)” is Letter A, and “Tips for Filling out the Disability Tax Credit Form” is Letter C.

• Each service listing falls under the letter of their section, and is designated a number. For example, the second listing in “Guide to Income Tax and Benefits (2014 Year)” is “A-2.”

• Each tax credit listing is formatted using the following template:

Letter - # Name of Tax Credit and/or Deduction

• The last sections of this guide include tax resources and supplements that address specific financial assistance benefits, deductions and reimbursements.

Qualifications Details

This section lists the eligibility qualifications for the tax credit and/or deduction.

This section contains a description of the details of the tax credit and/or deduction and the process of applying for said tax credit and/or deduction.

A Guide to Income Taxes and Benefits (2020 Tax Year) 8

Disclaimer

The MS Society does not endorse any particular activity or

organization. All listings are for reference only. In addition, while this guide aims to be comprehensive, it is not exhaustive and

should not be considered as such.

Some of the businesses and organizations identified in this document have approached the MS Society in order to share

information and services in their particular area of professional practice. Some may have a past history and knowledge of

working with individuals with MS, while others may not. The MS Society does not endorse the services or resources of any of these businesses or organizations, but wishes to pass along this

information for your consideration.

Not every resource listed in this guide will be suited to you, and not every resource in this guide is tailored specifically to the

needs of persons with MS. This information is a summary and is not a complete list. It is recommended that people with MS consult a professional tax preparer for help with their taxes.

A Guide to Income Taxes and Benefits (2020 Tax Year) 9

A GUIDE TO INCOME TAX AND

BENEFITS (2020 YEAR)

A-1 Caregiver Amount

Qualification Details • You may be able to claim this amount if

you or your spouse or common law partner’s child, grandchild, brother, sister, parent or grandparent (or other specified relatives) lives with you and depends on you due to mental or physical impairment.

• Parents and grandparents do not have to have impairment if they are 65 years of age or older.

• The net income of the dependant must be between $7005 and $23,391 (federal) or less than $19,975 (B.C.). You must first claim the amount on line 303, as applicable.

• The dependant must be 18 years of age or older.

• The dependant must be a resident of Canada (except child and grandchild).

• You can split this claim if you and another person support the same dependant.

• The CRA may ask for a signed statement from a qualified practitioner, but it is NOT required, so persons with mild impairment may qualify.

• You can claim this amount for more than one person.

• You cannot claim this amount: o For a spouse or common-law partner. o If the person was only visiting you o If anyone else claims the Amount for

an Eligible Dependant (see section A-4 on page 10) for this person.

• If anyone (including you) can claim this amount for this person, no one can claim the Amount for Infirm Dependants Age 18 or Older (see section A-5 on page 11) for this person.

A Guide to Income Taxes and Benefits (2020 Tax Year) 10

A-2 Family Caregiver Amount

A-3 Spouse or Common-Law Partner Amount (Line 303)

A-4 Amount of an Eligible Dependant (Line 305)

Qualification Details • If you have a dependant with an

impairment in mental or physical functions you may be able to claim an additional amount of up to $2,040 for one or more of the following: o Caregiver Amount (see section A-1 on

page 9) o Spouse or Common-Law Partner

Amount (see section A-3 on page 10) o Amount for an Eligible Dependant

(see section A-4 on page 10).

• You must have a signed statement from a qualified practitioner showing when the impairment began and what the duration of the impairment is expected to be

• You can claim this amount for more than one person.

Qualifications Details • You can claim this amount if you

supported your spouse or common-law partner and their net income was between $7005 and $23,391 (federal) or less than $9,807 (B.C.).

• Both of you cannot claim this amount for each other in the same year; you cannot split the claim between people.

• The net income cut-off may be impacted if you claim the Family Caregiver Amount (see section A-2 on page 9).

Qualifications Details • You may be able to claim this amount if:

o You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.

o You lived with the dependant you supported (in most cases in Canada) in a home you maintained.

• The net income of the dependant must be between between $7005 and $23,391 (federal) or $9,807 (B.C.).

• You may qualify if the dependant is your parent or grandparent or if the dependant is your child, grandchild, aunt, uncle, niece, nephew, brother or sister

• You cannot claim this amount if: o The person was only visiting you. o You or someone else is claiming a

Spouse or Common-Law Partner Amount (see section A-3 on page 10) for this person.

o Someone else in your household is making this claim.

o You are making a claim for this person for the Amount for Infirm Dependants Age 18 or Older (see section A-5 on page 11).

• You cannot split this amount with another person.

A Guide to Income Taxes and Benefits (2020 Tax Year) 11

A-5 Amount of Infirm Dependants Age 18 or Older (Line 307)

A-6 Disability Amount (Line 316)

and depends on you due to mental and physical impairment.

Qualification Details • You may be able to claim this amount if

you or your spouse or common-law partner’s child, grandchild, brother, sister, parent or grandparent (or other specified relatives) depends on you for support due to mental or physical impairment.

• The net income of the dependent must be less than $23,391 (federal) or $11,186 (B.C.).

• The dependant must be a resident of Canada.

• You can split this claim if you and another person support the same dependant.

• The CRA may ask for a signed statement from a qualified practitioner showing when the impairment began, what the duration of the impairment is expected to be, and that the person is dependent due to mental or physical impairment.

• You can claim this amount for more than one person.

• You cannot claim this amount if anyone (including you) is claiming the Amount for an Eligible Dependant (see section A-4 on page 10) or can claim the Caregiver Amount (see section A-1 on page 9) for this person.

Qualification Details • To claim this amount, you must have a

severe or prolonged impairment in physical or mental functions in the tax year. Impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months.

• Persons with Multiple Sclerosis: Under certain conditions you may be able to transfer some or all of this amount to your spouse or common law partner or to another supporting person.

• Caregivers: Under certain conditions, your dependant, spouse or common-law partner may be able to transfer some or all of this amount to you. You can split this claim if you and another person support the same dependant.

• Your doctor (or other qualified practitioner) must certify that you meet certain conditions by completing the ‘Disability Tax Credit Certificate’ (Canada Revenue Agency Form T2201). View the online form here: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t2201/t2201-18e.pdf

• Ask the qualified practitioner to date the Disability Tax Credit Certificate to the year of diagnosis or earlier, if possible, so that you are able to adjust your tax returns from previous years to benefit fully (using the ‘Adjustment Request’ form).

• If the qualified practitioner charges you fees to complete the Disability Tax Credit Certificate, you may be able to claim these as Medical Expenses (see section A-7 on page 12).

A Guide to Income Taxes and Benefits (2020 Tax Year) 12

A-7 Medical Expenses (Line 330 or 331)

A-8 Refundable Medical Expense Supplement (Line 452)

• If claiming this amount for the first time, the Disability Tax Credit Certificate must be submitted.

• This amount may be impacted by claims for Attendant Care (see section A-9 on page 13).

• *See section C on pages 16 – 20 for more detailed information on completing the Disability Tax Credit Certificate.

Qualifications Details • You may be able to claim a non-

refundable tax credit for medical expenses incurred on behalf of yourself, your spouse or common-law partner, and by specified relatives who were dependent on you for support during the year.

• If the medical expenses are for a dependent other than a spouse, common-law partner or minor child, the ability to claim this tax credit is based on the net income of the dependant.

• Some examples of eligible expenses are: o Payments to certain qualified

practitioners. o Walking aids and wheelchairs. o Prescription medications. o Prescription eyeglasses or contact

lenses. o Hearing aids. o Dentures.

• If the medical treatment is not available to you within 40 kilometres of your home, you may be able to claim the cost of your transportation to get the treatment somewhere else. Accommodation, meal, and parking expenses may also be eligible if you had to travel at least 80 kilometres.

• Visit https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-

expenses-2016.html for more details.

Qualification Details • This refundable tax credit is available to

working individuals with low income and high medical expenses.

• Your employment income must be $3,566 or more.

• The amount of this supplement is 25 per cent of the medical expenses that qualify for the Medical Expenses tax credit (see section A-7 on page 12).

• The amount is reduced by 5 per cent of combined family income in excess of $25,278.

A Guide to Income Taxes and Benefits (2020 Tax Year) 13

A-9 Attendant Care (at home or in an establishment)

A-10 GST/HST Exempt Goods and Services

• You must have made a claim for medical expenses on line 332 or disability supports on line 215

Qualifications Details • You can claim amounts you or your

spouse or common-law partner paid for attendant care at home or in retirement homes, homes for seniors, nursing homes (full-time care), group homes or other institutions.

• The certification needed to claim attendant care as medical expenses, and whether you can also claim the Disability Amount (see section A-7 on page 12), depends on the type of expense. Refer to the CRA Guide titled ‘Medical and Disability Related Information’ to learn more. Find the guide online here: http://www.cra-arc.gc.ca/E/pub/tg/rc4064/README.html

• If receiving services at home, you can only claim for the period when the person is at home and needs care.

• You can claim as medical expenses the costs for attendant care that include your share of the salaries and wages to all employees in a facility performing duties such as health care, food preparation, housekeeping, laundry services, transportation and activities.

• You cannot claim the cost of rent, food administration or other operating costs.

• You must send CRA a detailed financial summary from the facility that clearly shows the amounts paid for staff salaries that apply to attendant care services.

• An attendant who is hired privately will probably be considered an employee. Refer to the CRA Guide titled ‘Employee or Self-Employed?’ for more information. Find the guide online here: http://www.cra-arc.gc.ca/E/pub/tg/rc4110/README.html

• The paid attendant cannot be your spouse or common-law partner.

Qualifications Details • Some goods and services used by persons

with Multiple Sclerosis are exempt from the goods and services tax/ harmonized sales tax (GST/ HST).

• If you paid GST/ HST in error, you can ask the supplier for a refund or a credit from the supplier (for example, if the supplier refuses or goes out of business), you can apply to the CRA for a rebate by completing the ‘General Application for Rebate of GST/HST’ (Canada Revenue Agency Form

• Some examples of exempt expenses are: o Certain health care services. o Certain home care services. o Care and supervision services. o Home-delivered meals. o Certain medical devices and supplies.

• Refer to the CRA Guide titled ‘Medical and Disability Related Information’ to learn more. Find the guide online here: http://www.cra-arc.gc.ca/E/pub/tg/rc4064/README.html

A Guide to Income Taxes and Benefits (2020 Tax Year) 14

A-11 BC Seniors’ Home Renovation Tax Credit

GST189). Find the form online here: http://www.cra-arc.gc.ca/E/pbg/gf/gst189/README.html

Qualification Details • You may be able to claim eligible

expenses for permanent improvements to your principle residence if: o You were a B.C. resident, and o You were a senior (65 years of age or

older) or a non-senior living with a family member who is a senior.

o The improvements allow a senior to gain access to or to be more mobile or functional within the home, or

o A person with a disability or a family member living with a person with a disability (can only claim expenses from February 17, 2016 or after)

o The improvements reduce the risk of harm to a senior within the home.

• The maximum credit is $1,000 annually, calculated as 10 per cent of eligible expenses.

• This credit can be split between multiple family members living in that residence.

• If eligible expenses also qualify as Medical Expenses (see section A-7 on page 12), you can claim them as both.

• Some examples of eligible expenses are: o Renovations for a first-floor

occupancy or secondary suite. o Grab bars and handrails. o Wheelchair ramps, lifts and elevators. o Non-slip flooring. o Hand-held shower. o Walk-in bathtub and wheel-in

shower. o Widening of doors. o Motion-activated lighting. o Additional light fixtures.

A Guide to Income Taxes and Benefits (2020 Tax Year) 15

B GETTING AUTHORITY TO HANDLE

FINANCIAL AFFAIRS

It is important for individuals in the early stages of Multiple Sclerosis or another chronic illness

to plan ahead for legal, financial and health care matters by preparing an enduring power of

attorney and a representation agreement. It is strongly encouraged that families consult a

lawyer or notary public for assistance with preparing legal documents.

The following resources provide information on getting the authority to handle another

person’s legal, financial and health care affairs.

B-1 Authorizing or Cancelling a Representative

Taxpayer information is considered confidential according to the CRA. Consent can be given for another person to act as a representative for income tax matters by filling out Form T1013. If you have a legal representative (e.g. power of attorney or guardian) you do not need to fill out Form T1013. Online link: http://www.cra-arc.gc.ca/E/pbg/tf/t1013/README.html.

B-2 Nidus Personal Planning Resource Centre and Registry This not-for-profit organization offers information on powers of attorney and representation agreements. Nidus also operates a centralized registry where you can store your personal planning information and documents. Visit www.nidus.ca or call 1-877-267-5552 for details.

B-3 People’s Law School This not-for-profit society provides information on powers of attorney and representation agreements. It also publishes several informative booklets in a variety of different languages. Visit https://www.peopleslawschool.ca/ or call 604-331-5400 for more information.

B-4 Agreement to Administer Federal Pension Benefits You can apply to Human Resources and Skills Development Canada to become the trustee of federal pension benefits for a relative or friend who has become incapable. This only applies to the Canada Pension Plan (CPP) and Old Age Security (OAS) pension. For details, call 1-800-277-9914 or visit www.servicecanada.gc.ca

A Guide to Income Taxes and Benefits (2020 Tax Year) 16

C TIPS FOR FILLING OUT THE

DISABILITY TAX CREDIT FORM

The federal government introduced the first version of a disability deduction in 1944 for people who were blind. Over the years, the disability deduction has been transformed into a non-refundable tax credit and has been expanded to cover additional types of disabilities. Canada Revenue Agency (CRA) administers the Disability Tax Credit (DTC).

C-1 Eligibility Criteria

To be eligible for the Disability Tax Credit, you need to have a qualified person verify (defined below) verify that you have a prolonged and severe disability and meet at least one of the following criteria:

• Are blind

• Require life-sustaining therapy (14 hours per week)

• Have a marked restriction in one or more of the basic activities of daily living.

• Have significant restrictions in two or more basic activities of daily living, such that

the cumulative effect is equal to a marked restriction

Prolonged means lasting at least 12 months, and severe means you have a marked restriction and are unable or take an inordinate amount of time to perform the daily living activity all or substantially all of the time (at least 90% of the time) even with appropriate therapy and devices. The basic activities of daily living are: vision, speaking, hearing, walking, feeding, dressing, eliminating body waste, mental functions necessary for everyday life. The DTC can be claimed by persons of any age who meet the eligibility criteria. For example, a child who meets the eligibility criteria can claim the credit and transfer it to a supporting parent or guardian to reduce the amount of tax he/she has to pay.

Qualified persons are health care professionals such as medical doctors, optometrists, audiologists, occupational therapists, psychologists and speech-language pathologists.

• If you think you would qualify for the DTC, you must obtain the Disability Tax Credit

Certificate (T2201). It is available from tax offices across Canada, by calling 1-800-959-2221 or from the Canada Revenue Agency website at https://www.canada.ca/en/revenue-

agency/services/forms-publications/forms/t2201.html. You, or your legal representative, need to fill out Part A which provides basic information such as your name, address, date of birth, Social Insurance Number and your authorization for the qualified person to disclose the information for Part B. You will then need to ask the health care

A Guide to Income Taxes and Benefits (2020 Tax Year) 17

professional you have chosen (for most people with MS this would be a neurologist) to fill out Part B.

Part B consists first of a series of questions of how well you can carry out basic activities of daily living. This part of the form tries to capture how severe your disability is. The remainder of Part B asks the health care professional to provide information about the duration of the disability, that is whether it is prolonged and whether the impairment is permanent or likely to improve.

C-2 Tips for Filing out the Disability Tax Credit Form Because of the unpredictability of MS and its variability from day-to-day, it may be hard for a health care professional to answer with a simple “yes” or “no” to the questions on the form. Fatigue is a major problem for many people with MS, and it may make it difficult to carry out some of the basic activities of daily living. However, there is no place on the form to indicate the impact of fatigue.

In addition, some people with MS have been disqualified for the DTC if their doctors marked “yes” to the question “Can your patient walk?” Doctors are instructed to answer “no” only if, all or almost all of the time, even with therapy, medication, or a device, your patient cannot walk 50 metres on level ground, or he or she takes an inordinate amount of time to do so.

It is important to acknowledge that filling out forms like the Disability Tax Credit may be emotionally exhausting and very fatiguing so you may need to pace yourself. However, the discussion that you have with your doctor around your daily challenges is crucial to filling out these forms.

• First, decide who the appropriate health care professional is. For most people with MS this probably would be your neurologist or a nurse at one of the MS clinics working closely with a neurologist. The health care professional should be familiar with how MS impacts all your activities of daily life.

• When you meet with your doctor, you might wish to discuss in detail how MS affects your mobility and the impact fatigue might have on your ability to walk and carry out other basic activities of daily living.

• Use concrete examples when describing how MS has impacted your basic activities of daily life. Be consistent and open when describing how MS has affected your ability to walk, dress, or feed yourself, or any other basic activity of daily life listed above.

• Encourage your doctor to attach a note explaining the impact that MS has on your life. The note will have to be attached because unfortunately the current T2201 does not have room for explanations. If your doctor appears unwilling to write the letter, write a personal letter outlining the impact of MS on your activities of daily living and discuss it with your doctor. With a clearer understanding of the impact of MS in your particular situation, your doctor may be more willing to write a letter in support of your application.

A Guide to Income Taxes and Benefits (2020 Tax Year) 18

• Carefully read what your doctor has written and make sure that you agree with what he or she has stated.

• If you write a letter to accompany your Disability Tax Form, give detailed, relevant and focused information that will clarify each answer.

• It is essential that the person that you choose to fill out the Disability Tax From understands MS and supports your decision to apply for credit.

• Photocopy everything that you send and keep a copy of it in a safe place.

C-3 I have received the DTC for several years. Won’t I automatically qualify if I

am reassessed? If you have qualified for the DTC previously, do not assume you will automatically re-qualify. Your doctor or other health care provider must answer a series of questions about the nature of the impairment which must be prolonged and which causes you to be markedly restricted in any of the basic activities of daily living.

C-4 If I received CPP or QPP disability benefits, will I automatically qualify for

the DTC and vice versa?

No, the two programs are separate. You could still be working and qualify for the DTC. For example, you may use a wheelchair and be employed. You should qualify for the DTC if you cannot walk 50 metres, but you wouldn’t qualify for the Canada Pension Plan or Quebec Pension Plan (QPP) disability benefit because you are working. The contrary is also true. You may receive CPP or QPP disability benefit, but not qualify for the DTC because under the current interpretation you are not considered “markedly restricted” in carrying out the basic activities of daily living.

C-5 The Appeal Process if You are Denied or Disqualified You can request the CRA review your application, and any new supporting evidence, to make a redetermination. Alternatively, if your circumstances change, or if you have new evidence, you can complete a new application. You can also formally appeal the decision by the CRA by filing a Notice of Objection:

• You will need to file a Notice of Objection with the Appeals Section of your regional tax office of CRA within 90 days of the date of the Notice of Assessment from the CRA disallowing the tax credit.

• You can obtain a copy of a Notice of Objection (T400A) online at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t400a.html, from the regional tax office, or send a letter instead. You will find the address of the regional tax office on the letter that accompanies the Notice of Assessment. You will need to provide reasons for your objection in detail, personal contact information, your Social Insurance Number and the taxation year(s) under appeal.

A Guide to Income Taxes and Benefits (2020 Tax Year) 19

• In providing details for the objections, you should stress the disabling impact that MS has on the basic activities of daily living. Supporting medical documents should be provided.

Your Notice of Objections will be reviewed by the Chief of Appeals. You will be notified that your Notice of Objection has been received by the CRA. A Supplementary Questionnaire may be sent to your doctor during this appeal process for additional information. A copy of the questionnaire will also be sent to you. Call your doctor’s office immediately and discuss the questionnaire with him or her. Also ask for a copy of the completed questionnaire.

You will receive either a Notice of Reassessment which means you will receive the Disability Tax Credit, or a Notice of Confirmation confirming the original Notice of Assessment stating you do not qualify for the DTC.

C-6 What can I do if I lose my appeal?

If you receive a Notice of Confirmation, you can file a Notice of Appeal with the Tax Court of Canada within 90 days of the Notice of Confirmation. The process of the Notice of Appeal is similar to that of the Notice of Objection. The form is available from your regional tax office, but a letter is also acceptable.

• There is a Formal and an Informal Procedure. Most people request the Informal Procedure.

• You must submit the original, as well as two copies of the Notice of Appeal to the Tax Court of Canada in your area. Be sure to keep copies of all documents. You will receive a Notice of Hearing with the date and location of your hearing. The lawyer acting on behalf of CRA will also contact you.

• You are required to provide copies of all documents to the CRA lawyer prior to the hearing. Make sure you have an extra set of copies of all documents available for the judge at the time of the hearing.

• Don’t be intimidated by the court process. Judges are generally sympathetic towards persons with disabilities and if you can provide the evidence that you meet the eligibility criteria of the Income Tax Act, the Tax Court judge will rule on your behalf.

• The evidence you present at the Tax Court should focus on the severity of your disability. For example, if your doctor checked “yes” to the question on the T2201 form that you can walk 50 meters on level ground, you should provide additional medical evidence about how difficult this is and how fatigue impacts your ability to walk or to carry out the other basic activities of daily living.

For more information, visit: https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/complaints-disputes.html

A Guide to Income Taxes and Benefits (2020 Tax Year) 20

C-7 Who can assist me?

You can contact the BCY division office of the Multiple Sclerosis Society of Canada (call toll free 1 800 268 7582) for basic assistance with the process and improving your application’s likelihood of acceptance. If you are registered at one of the MS clinics, the doctors or nurses can also provide useful information for the medical evidence you will need when filing out the T2201 form for making an appeal.

C-8 What is the Multiple Sclerosis Society of Canada doing to make the DTC

process fairer for people with MS

The MS Society is working to persuade CRA officials that people with MS are being discriminated against by the current T2201 form and a definition of disability that is inflexible and does not take into account the unpredictability of the disease. The MS Society has also taken this argument to the Sub-Committee on the Status of Persons with Disabilities which has recently issued a report Getting It Right for Canadians: The Disability Tax Credit calling for major reform to the disability tax credit. The MS Society is also working with a group of other concerned health charities about the issues. The Disability Advisory Committee released its 2019 Report & Recommendations which addresses disparities in the accessibility and eligibility for Canadians trying to access the DTC. They offered 42 recommendations to the CRA; the 2019 report can be viewed at: https://www.canada.ca/content/dam/cra-arc/corp-info/aboutcra/dac/dac-report-in-brief-en.pdf (Disability Advisory Committee Annual 2019 Report: Enabling Access to Disability Tax Measures)

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D REGISTERED DISABILITY

SAVINGS PLAN The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with disabilities and their families save for the future. Contributions to RDSPs may be supplemented by a Canada Disability Savings Grant and a Canada Disability Savings Bond.

• The beneficiary of the RDSP is the person who will receive the money in the future.

• The RDSP is delivered by: Canada Revenue Agency (CRA)

• The Grant and Bond are delivered by: Employment and Social Development Canada (ESDC)

D-1 Eligibility Information

To be eligible for the RDSP, you must:

• be eligible for Form T2201, Disability Tax Credit Certificate (disability amount);

• be a Canadian resident when the plan is opened and when each contribution is made to the plan;

• be under 60 years of age (if 59, the individual must apply before the end of the calendar year in which he/she turns 59);

• Have a valid social insurance number. If the person is a minor, their parent or legal representative may establish the RDSP for

their benefit. The plan can have more than one holder at any given time.

D-2 Application Information

Several financial organizations offer the RDSP, Canada Disability Savings Grant and Canada Disability Savings Bond. To open an RDSP, contact a participating financial organization to complete a registration form.

D-3 Who can open an RDSP?

• The beneficiary is under the age of majority If the beneficiary is under the age of majority, another individual can open an RDSP for the beneficiary and become a holder if that person is: o A legal parent of the beneficiary o A guardian, tutor, or curator of the beneficiary, or another individual who is

legally authorized to act for the beneficiary

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o A public department, agency, or institutions that is legally authorized to act for the beneficiary

• The beneficiary has reached the age of majority and is legally able to enter into a

contract If the beneficiary has reached the age of majority and is legally able to enter into a contract, an RDSP can be established for such a beneficiary by the beneficiary. If a legal parent is, at the time the plan is established, a holder of a pre-existing RDSP for the adult beneficiary, the legal parent may become the sole holder of the plan or a joint holder of the plan with the beneficiary.

• The beneficiary has reached the age of majority, but whose legal ability to enter into a contract is in doubt The ability for a “qualifying family member” to open a plan under these rules applies as of June 29, 2012 and ends on December 31, 2023. These rules will not apply if an RDSP has already been opened for a beneficiary or if an entity or other individual, including a legal representative, is authorized to act on behalf of the beneficiary. A “qualifying family member” can open an RDSP for the individual and become a holder, if after reasonable inquiry, it is the opinion of a financial institution that offers RDSPs, that an adult individual’s ability to enter into a contract is in doubt. *Note: The spouse or common-law partner is not eligible for this measure if they are living apart from the beneficiary due to a breakdown in their marriage or partnership. A “qualifying family member” is no longer qualified to be a holder if any of the following apply: o in the issuer’s opinion, after reasonable inquiry, the beneficiary’s contractual

competence to enter into plan is no longer in doubt and the beneficiary notifies the issuer that he or she chooses to become the pan holder;

o the beneficiary is determined to be contractually competent by a competent tribunal or other authority under provincial law and the beneficiary chooses to replace the qualifying member as the plan holder; or

o a legal representative is later named in respect of the beneficiary, the legal representative will then replace the qualifying family member as the plan holder.

The RDSP issuer will be required to notify the individual if the individual becomes a beneficiary under an RDSP opened according to these rules.

• The beneficiary has reached the age of majority but is not legally able to enter into a contract

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An individual who is eligible to be a beneficiary of an RDSP, (but for whom a plan has not yet been established) may be reached the age of majority, but may not be legally able to enter into a contract. A qualified person, who is legally authorized to act for the beneficiary, can open an RDSP for the individual and become a holder.

• Can the holder of an RDSP be changed? When a plan is opened by a beneficiary’s legal parent(s), the legal parent(s) can continue as holder(s) of the plan after the beneficiary reaches the age of majority. When the beneficiary becomes an adult and is legally able to enter into a contract, the beneficiary can be added to the RDSP as a joint holder if the plan terms allow for the assignment of these rights. The beneficiary is the only one who can be a holder of the plan once he or she has reaches the age of majority and is legally able to enter into a contract. If a plan is opened by somebody other than the beneficiary or the beneficiary’s legal parent(s), that person or body must be removed as a holder of the plan when the beneficiary reaches the age of majority. A holder who is not the beneficiary of the plan does not have to be a resident of Canada but must have a valid SIN or business number (for public institutions, departments, and agencies) to establish the plan. If the guardian, tutor, public department, or any other qualified individual or body is no longer qualified to be a holder (for example they are no longer the legal guardian or have died), they must be removed from the plan as holder. In such a case, the following can be added to the plan as a holder’s successor or assignee: o the beneficiary (provided that the beneficiary has reached the age of majority

and is contractually competent); o the beneficiary’s estate; o any other person or body who is already a holder (for example, two legal parents

enter into an RDSP contract together and one parent passes away; the other parent would receive the deceased parent’s rights and become the sole holder of the plan; or

o a qualifying person at the time the rights are acquired.

D-4 Additional information

The lifetime contribution limit for an RDSP is $200,000, with no annual limit (all

contributions and rollover transfers that have previously been made to any RDSP will

reduce this amount). Anyone can contribute to the RDSP with the written permission of

the plan holder.

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Contributions are not tax-deductible and are not included in income when paid out of

an RDSP.

Investment income earned in the plan accumulates tax-free. However, grants, bonds,

and investment income earned in the plan are included in the beneficiary's income for

tax purposes when paid out of the RDSP.

For more detailed information on the Registered Disability Savings Plan, visit www.cra-

arc.gc.ca/tx/ndvdls/tpcs/rdsp-reei/menu-eng.html.

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E MEDICAL EXPENSE TAX CREDIT FOR

PROCEDURES AND SERVICES

RECEIVED OUTSIDE OF CANADA

People with MS who have travelled outside of Canada for procedures and services such as the CCSVI procedure or stem cell procedure may be eligible to claim, as a medical expense, the cost of the procedure as well as travel to the medical practitioner or medical facility. The following provides basic information about the medical expense tax credit and the steps needed to claim the tax credit to reduce the total income tax that is owed when you file your taxes. Please contact your own tax or financial advisor for individual advice. In addition to medical expenses, you may be able to claim other expenses, such as:

1. Cost of an attendant; 2. Cost of that attendant’s travel, if one is required; 3. Premiums paid for private health plans that covered the cost of medical expenses.

E-1 Medical Services Expenses

• Medical services must be performed by a medical practitioner licensed in the jurisdiction where the services are provided and the services have to be provided in a medical facility licensed in that jurisdiction.

• Canada Revenue Agency advises if there is doubt as to whether the medical practitioner or medical facility qualifies for purposes of the Income Tax Act, you should obtain complete information. For example, obtain details of the professional qualifications of the medical staff in attendance and of the medical or remedial care given.

• Be sure to keep all receipts to support the medical expense claim.

• You cannot claim as a medical expense, any expenses that have been reimbursed, e.g., by an insurance company, but as mentioned above, you may be able to claim the premiums paid for private health plans that covered the cost of medical expenses.

E-2 Travel and Transportation Expenses

• To qualify for a claim for your travel expense, you must have a qualified medical practitioner verify that substantially equivalent medical services are not available

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locally. This means a visit to your own physician or another medical practitioner who can certify that the same procedure is not available locally, or anywhere else closer than where you went for treatment. You will be required to verify you couldn’t have gone somewhere closer and why it was reasonable to go to where you chose to go.

• Travel costs (plane fare, hotel, bed and breakfast, taxi, rental care, car insurance, etc.) can be claimed as part of the medical expense if you have to travel more than 80 kilometres to obtain substantially equivalent medical services that are not available locally. The route must be reasonably direct.

• You can also claim travel expenses for someone to accompany you if a medical practitioner certifies in writing that you are unable to travel without assistance (this may not have to be a Canadian physician, as in some circumstances, there may not be anyone who can certify this until you are attended by someone at the remote treatment site). It may be possible to claim attendant care for this individual if they attended to you and met the criteria for claiming attendant care (see RC4064 Medical and Disability Related Information guide in the list of resources below for a discussion about attendant care claims).

• Generally speaking, transportation, such as the cost of taxis, in the out-of-Canada locale is an eligible cost for the medical expense claim as long as the transportation is for the person receiving the treatment and for the accompanying companion, if that person is required.

• If you rent a car, record the distance travelled to and from your point of entry to your accommodation and back to the exit point. Make sure you keep separate and travel for personal purposes.

• If you use your own vehicle, it’s possible to claim the distance travelled for the medical travel portion on a “simplified” method rather than a “detailed” method. See more information see the links to the Canada Revenue Agency website at the end of this article.

• Meals may also be claimed on either a detailed method with receipts or a simple method of $17 per meal, maximum $51 per day, per person, including the accompanying person should this person be certified to accompany you.

E-3 Additional Resources

For more information, see the following links on the Canada Revenue Agency website:

Introduction to travel expenses for the purposes of claiming the medical expenses tax credit

• https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-expenses-2016.html#trvlxpnss

Meal and vehicle rate information

• http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/255/rts-eng.html

Guide to Medical and Disability Related Information, RC4064

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• https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-expenses-2016.html#trvlxpnss

Medical expenses section as found in the Income Tax Act S. 118 2(2) See S. 118.2(a) for a description of claiming medical procedures

• https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-118.2.html

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F ADDITIONAL RESOURCES The following resources aim to help individuals receive all of the tax credits, refunds and reductions they are entitled to.

F-1 Community Volunteer Tax Program The objective of this program is to help individuals who are not able to prepare their income tax and benefit returns by themselves. In partnership with CRA, community organizations host tax preparation clinics and arrange for volunteers to prepare tax returns for eligible individuals. For more information, visit https://www.canada.ca/en/revenue-agency/services/tax/individuals/community-volunteer-income-tax-program.html or call 1 800 959 8281.

F-2 Employment Insurance (EI) Compassionate Care

EI Compassionate Care Benefits are paid to people who have to be away from work temporarily to provide care or support to a family member who is gravely ill and who has a significant risk of death within 26 weeks (6 months). A maximum of six weeks of compassionate care benefits may be paid to eligible people, and can be shared with other family members. Unemployed persons on EI can also apply. You may also be eligible if you are a close friend or neighbour and the gravely ill person considers you a family member. For more information, call 1-800-206-7218 or visit https://www.canada.ca/en/services/benefits/ei/caregiving.html.

F-3 Disability Benefits Help Sheets

A series of help sheets provided by the B.C. Coalition of People with Disabilities that describe key disability programs and benefits in B.C. Call 1-800-663-1278 or visit http://disabilityalliancebc.org/category/publications/help-sheets/ for more information.

F-4 Persons with Disabilities (Canada Revenue Agency)

This site offers up-to-date information covering topics of interest for persons with disabilities, family members, caregivers and all Canadians. It is provided by the Canada Revenue Agency and updated frequently. Visit http://www.cra-arc.gc.ca/disability/ for more information.

F-5 TaxAid for People with Disabilities and their Caregivers

TaxAid is a unique service established by a regional public accounting firm to ensure that Canadians with disabilities (and their families and caregivers) receive all the tax credits, refunds, and reductions they are entitled to. They will professionally review the tax situation of anyone with a disability for free. They will tell you what tax credits you may

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be entitled to and what your options are – which can include engaging their firm for a contingency fee based only on successful outcomes. Your tax review can be done by phone, by an online form or during an interview at one of their tax reduction clinics. Call 1-866-829-4446 or visit www.taxwise.ca for more information.

F-6 Burnaby Neighbourhood House

Volunteers are recruited to assist low income earners with completing their tax returns. A $5 donation is requested for this service. Contact them at 604-431-0400 for an appointment or visit https://burnabynh.ca/get-involved_adult/ for more information.

F-7 Salvation Army, Langley Community Church – Family Services

Offers free tax assistance, every Thursday, by appointment. If single, individuals must have an annual income that is below $30,000 and if married, their joint annual income must be below $40,000. Individuals cannot have a business or have claimed bankruptcy. Paperwork must be organized and ready to go. Contact Andrea or Kim at 604-514-7375 for more information.

F-8 The MS Society’s Volunteer Legal Advocacy The Volunteer Legal Advocacy Program assists people living with multiple sclerosis within the BC & Yukon Division of the Multiple Sclerosis Society of Canada to access advocacy support, legal advice, and representation. Advocacy support includes assistance with Canada Pension Plan disability benefit and private disability insurance applications through lay advocates. Please contact the MS Society for further information and eligibility criteria. Call 604 689 3144 or visit https://mssociety.ca/support-services/programs-and-services/198/volunteer-legal-advocacy-program-bc-yukon for more details.

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G MS SOCIETY RESOURCES

G-1 Information/Support/Advocacy

• Information and Support Line Provides accurate information on MS and community resources. Our community services coordinators also provide support counselling, education, referral and advocacy.

• Peer Support Program Connects individuals living with MS to a peer support volunteer to explore issues, share information and foster support.

• Volunteer Legal Advocacy Program (VLAP) Provides free advocacy support and legal advice for people affected by MS. Offers assistance navigating the Canadian Pension Plan (CPP) Disability Benefit forms.

• Self Help Groups A wonderful way to connect with other people affected by MS.

• Family Day A fun event hosted once a year for children 18 and under who have MS or a family member with MS.

G-2 Education

• Newly Diagnosed Workshops This educational workshop includes: MS overview, treatment, emotional impact, and community resources.

• Workshops Educational workshops for people who want to learn more about MS and a variety of topics.

• Webpage Visit www.mssociety.ca/chapters/fraserValley

• MSenger Newsletter Distributed every three weeks and provides time-sensitive, pertinent information on local programs and events, workshops, research, housing, transit updates and related articles.

• Shared Voices Newsletter Distributed quarterly and includes information on local programs and events, human interest articles, opinion pieces, recipes and book reviews by members.

G-3 Practical/Financial Support

• Kids Up Front Partnership This charitable organization that provides free access to arts, culture, sports and recreation. Children 18 and under who have MS or a parent with MS can participate.

• Equipment Provision Program Assists people with MS to obtain equipment required to enhance their quality of life.

• Hardship Support Provides limited funds for those with very restricted financial resources.