Resources
After recently attending the 35th annual Kids ‘n’ Us Conference in Edmonton (kidsnus.ca), it was apparent that information should be circulated regarding the available government benefits for parents of children diagnosed with Type 1 (formerly called Juvenile) Diabetes (T1D).
Available Benefits
Disability Tax Benefit for Individuals with T1D
All Canadians with Type 1 Diabetes Qualify for the Disability Tax Credit
Since 2022, all Canadians living with Type 1 Diabetes (T1D) automatically qualify for the federal disability tax credit. The disability tax credit (DTC) is a non-refundable tax credit that helps people with disabilities or their support people/family members reduce the amount of income tax they may have to pay. This is intended to ease the financial burden caused by unavoidable and necessary life-saving expenses faced by everyone with T1D.
Prior to 2022, it had to be proven that those with T1D required a minimum of 14 hours per week actively involved in monitoring and treating their condition – which resulted in some individuals being approved while others were denied based on their ability to complete the forms.
Note that a child or youth with T1D can transfer the unused portion of the DTC to the custodial parent/caregiver, and a married individual with T1D can transfer the unused portion to their spouse.
Detailed instructions at: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/how-apply-dtc.html).
Traditional Application:
Print off the T2201 form from Canada Revenue Agency (https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2201.html).
Complete the first two pages with the details of the individual with T1D and any supporting individual (parent/spouse). On question 3 at the top of the second page, it is very important to indicate that YES you want CRA to apply the credit to any previous years and reassess and refund if applicable. Sign and take the entire document to your physician to finish.
Note, there will likely be a charge for the doctor’s time to complete the form – this is an eligible medical expense which can be claimed on your tax return.
Once signed off by both the claimant (or guardian) and physician, the form is submitted to Canada Revenue Agency either through a CRA MyAccount online portal, an accountant’s Represent-a-Client access, or by mail.
Online Application:
The person with the impairment or their legal representative must fill out Part A of the digital application form. If the individual applying for the DTC has CRA MyAccount portal access, they can access ‘Benefits and Credits’, ‘Apply for DTC’ and complete the form. Alternatively, one may phone the CRA and have Part A of the digital form filled out on their behalf. Note: it may take several hours to get through to a call centre agent (1-800-959-8281), identification from a previously filed tax return will be needed, and personal information is provided to the CRA Agent to complete Part A of the application form.
After completing Part A either online or by phone, a reference number will be issued. The individual then provides this reference number to their physician who will complete the remainder of the form online.
Approval Process
It will take several months for the application to be reviewed and approved, longer if more information is required from the completing physician.
Once approved, Revenue Canada will reassess any applicable years of tax returns and issue a refund, and the DTC can be claimed on future years of tax returns.
Note: Revenue Canada will only reassess the tax returns of the individual with the DTC. If they cannot use the full credit and it is to be transferred to another (parent/spouse), that individual’s tax return needs to be amended either through their CRA MyAccount online ‘Change my Return’ feature or through their accountant.
For Children with T1D: Child Disability Benefit (CDB)
This is an income-based tax-free monthly payment made to families who care for a child with a severe and prolonged impairment. The child must be eligible for the Canada Child Benefit (CCB) and the Disability Tax Credit (DTC) – if the parent is already getting the CCB for the child who becomes eligible for the DTC, this will be automatically increased to the CDB. The amount of the CDB is calculated based on information from the previous year’s tax return.
For Children and Adults with T1D: Registered Disability Savings Plan (RDSP)
An RDSP is a savings plan intended to help parents and others save for the long term financial security of a person who is eligible for the DTC. Contributions to an RDSP are NOT tax deductible, however the Government of Canada also contributes to the plan through the Canada Disability Savings Grant and the Canada Disability Savings Bond which can significantly increase the balance of the account over the long-term. An RDSP can receive a maximum of $3,500 in matching grants in one year and up to $70,000 over the beneficiary’s lifetime as well as a potential bond of $1,000 a year with a lifetime bond limit of $20,000.
Restrictions exist regarding the age of the individual and length of time the account must remain open – check out the detailed information at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp/canada-disability-savings-grant-canada-disability-savings-bond.html.
RDSP accounts are opened with a participating financial institution.
Helpful Links
The global online community for families of children with diabetes. This group holds phenomenal conferences around the world. Strongly recommended is to sign up for their weekly newsletter of what’s new in the diabetes community – contains links to current research, conferences, news, blogs, publications, and more.
The Juvenile Diabetes Research Foundation Canada. Contains news of local chapters and events throughout the country. Strongly recommended to contact your local chapter and be added to the ‘Dear Supporters’ email listing of local happenings in your community.
The one-stop shop for all things diabetes-related in Canada. We have found this website to contain the best information on applying for Federal Disability Tax Credit, and Canada-specific events, advocacy initiatives, treatment options, government support, etc.
A consulting service operating out of the US, but available to Canadians (fees apply). Operated by the author of Think like a Pancreas, online support and Diabetes University are available. Recommended for those having difficulty getting their A1C under control. Contains an excellent summary of news from the American Diabetes Association 73rd annual Scientific Sessions held in Chicago in June 2013 – lots happening in the world of diabetes!
Diabetes Canada (formerly CDA) was recommended for their excellent in-school presentations and advocacy initiatives, notably the Recommended Standards of Care for Students with Diabetes in School.
Pediatric Diabetes Education Centre – Edmonton
Although no website at this time, this is the address for the Pediatric Diabetes Education Centre here in Edmonton at the Stollery Hospital. They offer free workshops to families and caregivers of children with diabetes.
DiabetesCareCommunity.ca – a Canadian online resource for families of people living with diabetes. The website allows people to learn new and pertinent information from health care professionals and provides the opportunity to connect with other Canadians to share experiences and provide support.
Diabetes Express was created in 2005 to meet the needs of the ever growing market for diabetic supplies and services. Our website was developed to better serve existing customers and extend our services to new customers across Canada.
An Online Community where the members help each other out, educate ourselves and share the steps we take every day to stay healthy while living with this very serious condition.
Provincial Coverage for Dexcom CGM
Insurance coverage varies by policy and plan. Many plans require the use of intensive-insulin therapy to qualify for coverage. Always check with your provincial insurer for complete coverage details.
Diabetes Research Institute Foundation Canada (DRIFCan)
DRIFCan’s mission is to directly fund cure-based diabetes.
ICD’s mission is to connect, empower and support people living with diabetes through mentorship and challenging programs
As a member of the diabetes support community, we thank the Government of Canada for recognizing that raising a child with Type 1 Diabetes involves extraordinary medical care which is primarily provided by family members.