This deduction allows a person to claim certain medical or support expenses if they were incurred to help them:
perform job duties,
operate a business, or
attend secondary school or a designated educational institution.
A common expense claimed is attendant care.
Who can claim it?
The person must have a mental or physical impairment.
Depending on the expense, additional conditions may apply.
Some expenses require a T2201 Disability Tax Credit Certificate, but many do not.
What expenses are eligible?
Attendant care (most common): requires either a T2201 Disability Tax Credit Certificate or a written certification from a medical practitioner. The care provider cannot be the person’s spouse or under 18. Receipts are required.
Other examples: tutoring services, note-taking services, job coaching services, and voice recognition software.
Not eligible: home renovation costs.
For a full list, see CRA Folio S1-F1-C3Disability Supports Deduction.
What if the expense also qualifies as a medical expense?
Some expenses (e.g., attendant care) may qualify for both the Disability Supports Deduction and the Medical Expense Tax Credit.
A choice must be made, since UFile will not decide for you.
Key differences:
A deduction lowers net and taxable income, which could increase benefits like CCB, GST/HST credit, GIS, or GAINS.
A credit reduces tax owing.
If claimed as deduction, there is no 3% of net income threshold like with medical expenses
Expenses may be split between the deduction and the credit. Any unused portion can be claimed as a medical expense.
Are there limits?
The deduction is generally limited to the total amount of “earned income,” which includes employment income, self-employment income, and certain other eligible sources.[1]
If the person attended an educational institution, the deduction limit is potentially larger: Earned income plus the least of:
$15,000,
$375 × the number of weeks enrolled in the year, or
Net income minus earned income.
How to claim in UFile:
Under the Interview tab, in Common tax deductions, check Medical expenses, disability, caregiver.
On the left, select Medical, disability, caregiver, then on the right, click the plus sign next to Disability Supports deduction.
On the left, select F21600 – Disability support services, then enter the details.
UFile will generate Form T929. If eligible, the deduction appears on Line 21500.
Important: UFile will not calculate a deduction unless you confirm that the person has an infirmity or a Disability Tax Credit certificate.
To do this: under Medical, disability, caregiver, click the plus sign next to Infirmity and Disability amounts and provide a brief name or description.
If the person does not have a Disability Tax Credit certificate, select Do not claim disability amount.