Confused in Ontario...

This loaded with questions email arrived just now..
Eileen I've been trying to figure out how this Disability Tax Credit works. My tax person said cause I collect regular cpp & wsib I don't have a taxable income and it would do me know good to apply for it ( I am 60 ). When I asked about transferring the credit to my son, I was told cause I don't live with him I can't. I have read many links on this tax credit and not once have I seen stated that I have to live with him.This tax credit was told to me a few years ago and at that time apparently I could do it, but not now. Can you tell what the rules are for applying? Also if I can apply, can I do it separate from my income tax this year? Is the T2201 form that needs to be filed out by a doctor,is the cost covered by ohip or do I pay the cost? ...Even though I live on my own since 2004, once my son went out on his own, my income is not a lot to live on and you have to either go without or limit it so you can pay for more important stuff. Why should a child have to live at home to help out a parent that is single? If a child gives an X amount dollars to their parent to help them out with food,clothing,meds,or rent, why isn't that help towards supporting them?

I would appreciate any input you can give me on this and what I can or can't do and what would be the best way to go, if you feel I should apply.Thank you for your time and help and being there for people like myself that is confused from all this. Thanks again and have a great day.

Here's my answer because I'm sure this woman isn't the only one asking these questions, and I hope I answered all of the questions as best I can:

The official place to look for information is the Canada Revenue Agency website.CRA publishes a guide, RC4064, which explains the credits and how they work.
http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/menu-eng.html

To apply for the DTC, your doctor(s) must complete T2201.  Read the Form T2201 to review under which section you think the doctor might be qualifying you.   Review the cumulative effects definition as it’s possible you may not meet the criteria for one severe and prolonged marked restriction, but two or more significant restrictions might equate to one marked restriction. Remember disability isn’t a diagnosis, it’s an impairment in ability. As for whether OHIP will pay for the form completion, you’d have to ask them.

As for whether or not your son supports you…let’s be really clear, money to help out is not considered to be support.  Support is direct payment to third parties for basic essentials, which is food, shelter and clothing. Interpretation bulletin IT 513 discussion about support is about as clear as you are going to get. That doesn’t mean it’s easy to understand and apply. See the Appendix for a story about support that may help explain what is meant by support.  There is no such thing as a sponsor. I don’t know where that comes from. If someone supports you, that’s not sponsorship anywhere I’ve ever seen.  Someone has made up that term. Here’s a link to what CRA says about tax credits and transfer of credits to relatives because of support (see the appendices):
http://www.cra-arc.gc.ca/E/pub/tp/it513r/README.html

As for whether or not you can transfer the credit to your son would depend on whether or not the facts show that he supports you with basic essentials, food, shelter and clothing. Medical isn’t on that list. You don’t have to live with your son for him to make the claim, but he does need to pay for basic essentials.  The problem is that with your income from CPP and WSIB aren’t you paying for the basic essentials yourself?

If your son pays for your medical costs directly to third parties (not by refunding you with money) he may be able to claim those if he supports you on Line 331 net of 3% of your net income (no $10,000 limit after 2010)

As for applying for the DTC, form T2201 is completed by your doctor.  The doctor can ask for assistance from CRA or can read or visit the CRA website to look at the videos for doctors that explain how the credit works.
http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/qlfd-prcts/menu-eng.html

You’ll find links to that information on my website in the complimentary links down under the Family information section.
http://www.taxdetective.ca/links.html
And the direct link to my family info page:

And… as of 2012, your son, even if he can’t claim you because you don’t qualify for the Disability Tax Credit, might be able to claim an additional $2,000 federal credit for the Family Caregiver Amount if he qualifies to claim you as an Infirm Dependent over 18.

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