To be eligible for this tax credit, people with diabetes must have Form T2201 completed by a physician or nurse practitioner. The section that applies to diabetes is “Life-sustaining therapy.”

*** The digital form for health professionals is still not up to date for life-sustaining therapy. You must use the pdf form.

The eligibility criteria are as follows:

For fiscal years 2021 and beyond, all individuals diagnosed with type 1 diabetes are eligible, without further justification. The health professional must answer certain questions on pages 15 and 16 of the form.

How to claim the tax credit for previous years?

If you were eligible for the DTC in previous years but did not claim the disability amount, you can claim it for up to 10 years back. Here’s how:

Check yes to question 3 in Part A

Prepare a document with proof of 14 hours of life-sustaining therapy/week detailing eligible activities and the time spent on them. Specify on your proof document the years for which this applies.

Bring your proof document to your health care provider. He/she will have to answer ALL the questions on pages 15 and 16.

Mail your proof document and the completed form (registered mail recommended) to: Jonquière Tax Centre, 2251 René-Lévesque Boulevard, Jonquière QC G7S 5J2 or electronically in PDF format via the “CRA My Account” of the person with type 1 diabetes or the parent of the child with type 1 diabetes.

For the fiscal years prior to 2021, the old criteria apply:

The person needs life-sustaining therapy to maintain vital functions.
This therapy is needed at least 3 times/week for an average of at least 14 hours/week.
Activities that can be included in the 14 hours:
- Blood glucose monitoring
- Preparation and administration of insulin
- Calibration and maintenance of the necessary equipment
- Keeping a blood glucose logbook
Activities that cannot be included in the 14 hours:
- Calculating carbohydrates
- Physical activity/exercise program
- Recovery from hypoglycemia or hyperglycemia
- Meal preparation
- Travel time and duration of medical appointments
- Time spent purchasing medication.

To help you prepare your application, consult our examples of a proof document for the 14 hours/week of life-sustaining therapy. Example for an insulin pump (in french only) and example for multiple injections (in french only). These examples should be customized, and their use does not guarantee that your request will be accepted.

If your doctor is reluctant to fill out the form, you may want to send them this LETTER (in french only).

Send your application to:

Mail: Jonquière Tax Centre, 2251 René-Lévesque Boulevard, Jonquière QC G7S 5J2 (registered mail recommended)
Electronically: in PDF format via the “CRA My Account” of the person with type 1 diabetes or the parent of the child with type 1 diabetes

How to claim the amount on the tax return?

Complete Form T-2201 and enclose it with your tax return. Assume that it will be accepted.
Each year, enter the specified amount on line 31600 (self) or 31800 (dependant)
Amount for 2022: $8,870 to enter on line 31600
In 2022, the maximum amount that the federal tax credit can reduce your taxes is $1,111 for Québec residents.

For more information:

Canada Revenue Agency – Disability Tax Credit
Phone: 1-800-387-1194 (Direct line to the “Benefits” section responsible for tax credits for impaired individuals)
Note: It is possible to see the duration of your DTC certificate by going to your “CRA My Account” webpage and on the left, select “Income Tax Returns.”

Provincial – Amount for Persons with Severe and Prolonged Impairment in Mental or Physical Functions

To be eligible for this tax credit, people with diabetes must have the Certificate Respecting an Impairment TP_752.0.14 (mandatory if the application is made by a caregiver) completed by a physician, or use the equivalent federal form, the Disability Tax Credit Certificate, Form T-2201. The section that applies to diabetes is “Time spent on essential therapy.”

The eligibility criteria are as follows:

For the fiscal years 2021 and beyond, all individuals diagnosed with type 1 diabetes are eligible, with no further justification. The health professional must answer questions 37a, 40, 41, and sign the form.

How to claim the tax credit for previous years?

If you were eligible for the tax credit in previous years but did not claim the disability amount, you can claim it for up to 10 years back. Here’s how:

Check yes in section 2 (provincial form TP-752.0.14-V) or attach a letter of introduction if you are using the federal form T-2201. Sample Letter of Introduction (in French only).

Prepare a document with proof of 14 hours of essential therapy/week detailing the eligible activities and the time spent on them. Specify the years for which this applies.

Bring your proof document to your health care provider. He/she will then have to answer ALL the questions in the “Time spent on essential therapy” section.

Mail your proof document and the completed form.

For the fiscal years prior to 2021, the old criteria apply:

The person needs essential therapy to maintain vital functions.
This therapy is required at least twice/week for an average duration of at least 14 hours/week.
Activities that can be included in the 14 hours:
- Blood glucose monitoring
- Preparation and administration of insulin
- Calibration and maintenance of necessary equipment
- Keeping a blood glucose logbook
- Travel time and duration of medical appointments
Activities that cannot be included in the 14 hours:
- Calculating carbohydrates
- Physical activity/exercise program
- Recovery from hypoglycemia or hyperglycemia
- Meal preparation
- Time spent purchasing medication

To help you prepare your application, consult our examples of a proof document for the 14 hours/week of essential therapy. Example for an insulin pump (in french only) and Example for multiple injections (in french only). These examples should be customized, and their use does not guarantee that your request will be accepted.

If your doctor is reluctant to fill out the form, you may want to send them this LETTER (in french only).

Send your application by mail to:

P.O. Box 3000, succursale Place-Desjardins, Montréal, Québec H5B 1A4 or 3800, rue de Marly, Québec City, Québec (Québec) G1X 4A5 (registered mail recommended)

How to claim the amount on the tax return?

your have to receive your approbation for disability credit first
Every year, enter the specified amount on line 376
Amount for 2022: $3,584 to enter on line 376
In 2022, the maximum amount that the provincial tax credit can reduce your taxes is $537.60

For more information, consult the website of Revenu Québec – Tax Credits.

Provincial – Additional assistance for disabled children

Parents of children with type 1 diabetes may be eligible for the Supplement for Handicapped Children. This tax-free allowance was $205/month in 2022.

To receive this supplement:

Parents must receive the family allowance;
The dependent child must be under 18 years of age;

The parents and the doctor must complete the Application for the Supplement for Handicapped Children form. The “Metabolic or hereditary abnormalities” section applies to type 1 diabetes. The form states that the child is presumed impaired if he or she receives daily insulin therapy.

For more information, consult the website of Retraite Québec – Supplement for handicapped children.

Tel.: 1-800-667-9625

Federal – Child Disability Benefit

Parents of children with type 1 diabetes may be eligible for the Child Disability Benefit (CDB). This tax-free amount can reach $248.75/month depending on family income in 2022.

To get the CDB:

Parents must be eligible for the Canada Child Benefit (CCB);
The dependent child must be under 18 years of age;
The physician completes Form T2201 – Disability Tax Credit (DTC) Certificate. See Federal Disability Tax Credit (DTC) above.

If you are already receiving the Canada Child Benefit (CCB) for your child who is eligible for the DTC, you do not need to apply for the Child Disability Benefit (CDB). You will receive it automatically.

For more information, visit the website of the Canada Revenue Agency – Child Disability Benefit.

Phone: 1-800-387-1194

You can claim the non-refundable Canada Caregiver Credit (CCC) of $2,295 for one or more of the following persons, if they are dependent on you because of a physical or mental impairment:

your spouse or common-law partner
your (or your spouse’s or common-law partner’s) child or grandchild
your (or your spouse’s or common-law partner’s) parent, grandparent, brother, sister, uncle, aunt, niece, or nephew, if they resided in Canada at any time in the year

An individual is considered to depend on you for support if they rely on you to regularly and consistently provide them with some or all of the basic necessities of life, such as food, shelter and clothing.

Supporting documents

A medical note attesting to the date the impairment began and its expected duration. For a child under the age of 18, the note must also indicate that the child is dependent on others because of impairment in physical or mental functions and is likely to be dependent for a long and continuous period of time. (Dependent on others means that the child needs much more help with personal needs and care compared to other children of the same age.)

You do not need a note signed by a health professional if the CRA has already approved Form T2201, Disability Tax Credit Certificate, for the period in question.

For more information on how to complete your tax return, visit the website of the Canada Revenue Agency – Canada Caregiver Credit.

Students with diabetes enrolled in CEGEP or university can apply for loans and bursaries through the Student Financial Assistance program of the Ministère de l’Éducation et de l’Enseignement supérieur.

Full-time students receiving loans or bursaries can apply for reimbursement of their expenses for prescription drugs and chiropractic care prescribed by a physician. The reimbursement will cover the portion unpaid by RAMQ, group insurance or private insurance, with the exception of the first $16 disbursed each month.

How to request a refund?

Visit the SFA website to download and print Form 1012 – Declaration of Change – Student in the Allowable Expenses section;
At the end of each school session, complete sections 1, 5 and 8;

Download the completed form, attach invoices and a note explaining the amounts for each month.
Submit your files online or print and send by mail.

Note: Based on the parameters of the financial assistance calculator, if the income of the student’s parents or spouse is high and the student is eligible only for student loans, the student may not receive reimbursement of medical expenses.

The Government of Canada offers those who qualify for the Disability Tax Credit (DTC) an opportunity to save through a Registered Disability Savings Plan (RDSP). You can contribute up to age 50 and the government makes a contribution in the form of the Canada Disability Savings Grant.

Admissibility

Have been approved for the Disability Tax Credit (DTC).

Application made before December 31 of the year in which the person with a disability turns 59.

How to open an RDSP?

You must contact one of the financial institutions that offers the RDSP: list here

It is not mandatory to have an account with the financial institution to open an RDSP with them.

Benefits of the RDSP

Canada Disability Savings Grant (CDSG): A matching grant that is paid until December 31 of the year you turn 49. This means that if you contribute to your plan or your child’s plan, the government will also contribute to that plan.
How much? The maximum grant is $3,500 per year, up to a lifetime maximum of $70,000.

How to get it? The grant is paid based on amount of money put into the RDSP and the beneficiary’s family income.
The Canada Disability Savings Bond (CDSB): This is an amount that the government pays into the RDSPs of low- and moderate-income individuals. You do not have to contribute to your plan to receive the Bond.
How much? The maximum amount of the bond is $1,000 per year, up to a lifetime maximum of $20,000.
How to get it?  You must have a family income between $0 and $50,197/year.
Potentially retroactive: You may receive an additional amount if you are approved for the DTC for some or all of the last 10 years. This amount is called a “carry-forward.”

Limitations

The lifetime contribution limit is $200,000. There is no annual maximum, but it is best to contribute many small amounts over several years to benefit from the government grants and bonds (see graphic example at the end).
Contributions can be made up to age 59.
RDSP contributions are not tax deductible.

For more information, visit the website of the Canada Revenue Agency – RDSP.

Calculation tool on the CRA website
RDSP information videos

Eligible medical expenses can be claimed on your annual income tax return.

For more provincial information, consult the website of Revenu Québec – Medical Expenses.

For more federal information, consult the website of the CRA – Eligible medical expenses you can claim on your tax return.

People with diabetes who are on social assistance have the right to a supplementary amount of $20 per month and free prescriptions.

For more information, consult the website (in French only) of the Ministère du Travail, de l’Emploi et de la Solidarité sociale or call them at 1-877-767-8773.

Presented in September 2021, by Valérie Savard, as part of The BETTER Project for people living with type 1 diabetes in Quebec.

Financial assistance and diabetes