International Day of Persons with Disabilities

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The holiday season is here, and that means opening your heart to giving. Not only to those close to you, but to those that really appreciate a helping hand.  We should make a habit of giving throughout the entire year and not just at Christmas. This Dec 3, 2011 is the International Day of Persons with Disabilities. This is an international observance promoted by the United Nations since 1992. We encourage you to participate in this day, at a local level, and think about giving back to those in need.Check out this link for how to celebrate in Calgary. http://www.calgaryidpd.ca/From an accounting perspective, I will discuss a few tax breaks that are available to persons with disabilities. People who qualify can take advantage of the credits available.Disability tax creditA disability tax credit can be claimed if you have a severe and prolonged mental or physical impairment which restricts your ability to perform the basic activities of daily living, such as: speaking, hearing, walking, feeding, dressing, and performing the mental functions necessary for everyday life. If the disability qualifies, it must be certified by a doctor, who will then complete this form: T2201For 2011 the federal disability credit is $7,341.  This amount can also be transferred from the dependent to the caregiver.Amount for infirm dependentAn individual may claim an amount for dependants age 18 or older, provided they are dependent on the individual because of a mental or physical disability. DependantA dependant is defined as a person who at any time in the year is dependent on an individual for support. This includes the individual's or the individual's spouse's or common-law partner's• child or grandchild; or• parent, grandparent, brother, sister, uncle, aunt, niece, or nephew (if this person is resident in Canada at any time in the year).For 2011, the federal credit is $4,282Registered disability savings plans (RDSPs).Family members, and other authorized contributors are entitled to establish registered disability savings plans (RDSPs) if they are related to individuals with a prolonged and severe physical or mental impairment.RDSPs are designed to help parents and others save and provide for the long-term financial security of a disabled beneficiary.The tax treatment of RDSPs is very similar to that of Registered Education Savings Plans. The contributions to the plan are not tax deductible, investment income accrues on a tax-deferred basis, and withdrawals from the plan are taxable to the beneficiary to a certain extent. Disability support deductionsEligible disability supports expenses may be claimed as a deduction if the following conditions are met:• the expenses were incurred to enable the individual to:– be employed,– carry on a business (either alone or as an active partner),– carry on research or similar work (for which the individual received a grant), or– attend a designated educational institution or secondary school where the individual is enrolled in an educational program Example of such payments include: note-taking services, voice-recognition software, tutoring services, talking textbooks, job coaching services, reading services, full- or part-time attendant care services provided in Canada

The disability support deduction is available only to individuals with disabilities; it is not available to people who support them.

Other tax credits include amount for eligible dependents, child care expense deductions, amount for children, medical expense credits, and caregiver amounts. 
Check out this not for profit organization that works with people with disabilities for social activities and lots of fun.  http://www.betweenfriends.ab.ca/The following is a link to the Government of Canada’s resource for people with disabilities. http://www.pwd-online.ca/pwdhome.jsp?lang=enIf you or somebody you know qualifies for these tax deductions and credits please ensure you are using them. Have a great day.