Do not forget to claim the disability related tax credits.

This is the time of year when Canadians start to think about filing their income tax return. We have found that many clients do not take full advantage of the non-refundable tax credits available for those who have a dependant with special needs or their families. These credits are frequently overlooked and can leave thousands of dollars in tax refunds on the table. Unfortunately, Canada Revenue Agency (CRA) tax rules are complicated and almost impossible for the average person to figure out, especially the CRA definition of a dependant. The Income Tax Act defines dependant as a person dependant on someone for support and at any time in the year and is the child or grandchild of the individual or the individual's spouse or the parent, grandparent, brother, sister, uncle, aunt, niece or nephew of the individual or the individual's spouse and living in Canada at some time during the year.

There is also the dilemma of whether or not to claim a family member if he/she does not live with you. We have many clients who support adult family members who do not live together. The support they provide includes financial support, paying bills and managing their banking, taking to doctor appointments, cooking meals and other daily activities. The CRA might request that you provide details on the support you provide your family member. This is a simple process and we have assisted many clients in providing the appropriate response to the CRA inquiry.

Using Ontario as an example. If you have an adult dependant with low income and qualifies for the disability tax credit and you utilize all of the available non-refundable tax credits, you could obtain an additional tax refund in excess of $3,900 for the 2013 tax year. In provinces such as Alberta and Saskatchewan, this amount is significantly higher due to a more generous provincial tax credit rate. We strongly suggest that if you have or someone you know has a disability. that they seek out tax advice to see if there are any tax refunds out there that might have been missed. Tax planning for those with special needs is complex and not well understood by the majority of tax preparers. Getting expert advice from Disability Dreams Group is a good place to start .