A Brief Guide to the Child Disability Tax Credit


For parents of a child with a disability in Canada there is a welcome form of financial support in the Child Disability Tax Credit. Parents of a child with a disability can receive up to $224.58 per month as assistance from the government. The benefit is meant for parents who have a child with a permanent disability (under the age of eighteen), and is given to parents as a tax-fee benefit. Parents will receive the credit each month to assist them with whatever needs they deem to be important.

There are many benefits to this credit namely that it can co-exist with other forms of support such as grants for services, caregivers, or adaptive technology. Many parents of a child with a disability incur a high degree of costs associated with the nature of their child’s disability. Some of these costs are:

  • Multiple forms of physical, play or other forms of therapeutic therapy
  • A need for various medications (sometimes multiple medications together)
  • Special programs and services
  • Caregivers to assist in the home
  • Specific equipment and adaptive technology
  • Occupational therapy
  • Dental work
  • Psychotherapy for parents and/or family members

In some children who experience a complicated condition such as Fetal Alcohol Syndrome, there will likely be a need for multiple forms of treatments, different medications, long hospital stays, and other complicated needs.

The amount of money parents receive is dependent up on a few factors:

  • The nature and complexity of the child’s disability
  • The parent’s income
  • The nature of the treatments recommended by physicians and other treatment professionals

Various suppliers can help your children have the best childhood possible by assisting you in applying for a Child Disability Tax Credit.  The amount you save from paying higher income taxes can now help pay for necessary aid in raising your children with disability. The Child Disability Benefit can help children of all ages, starting from infancy, to attending preschool all the way to high school.

The Child Disability Benefit is home to various programs that help disabled children achieve their full potential. This is funded by the government through our taxes and other resources, as well as partnerships with non-profit charitable organizations and generous donations from private industries. The Child Disability Benefit is administered and given out by the government in various child and family support programs through Service Canada or its Services for Families and Children program. These include:

  • Canada Child Tax Benefit: This is a monthly payment which is tax free to parents with children under the age of 18. For parents with a child who has a disability there is the previously discussed Child Disability Benefit.
  • Child Care Subsidy: This is geared to low-income families who require additional financial services to assist them with the care of their children also under the age of 18.
  • Child Rearing Drop-Out Provision: This is another supplement geared towards parents or caregivers who have a low or zero income. The purpose of this is to remove the burden of making contributions to the CPP or Canada Pension Plan. For these families, the amount of amount they would have to put into the CPP program would have a deleterious effect on them given that they care for a child seven years or younger.
  • Child Support Services: This program is meant to help caregivers to obtain legal agreements or court orders required to secure child support payments. If their spouse is delinquent in his/her payments, this program can help.
  • Universal Child Care Benefits: All Canadian families with young children are eligible for this benefit which pays $100 per child under the age of six.
  • Early Childhood Services and Special Needs: This supplement is geared specifically towards children under the age of six with a disability, who may be eligible for three years of early learning support

All of these benefits combined can be incredibly helpful to parents with a child who has a disability and support them in being more proactive parents.  

1 thought on “A Brief Guide to the Child Disability Tax Credit

  1. Very good review, remember that you do not need to rely on outside firms to get the tax credit, and I would strongly suggest you do this all yourself. Call the CRA if you need help, or find a family support group.

Leave a Reply

Your email address will not be published. Required fields are marked *