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Disability tax credit (DTC)


#1

Hello,

just want to find out with the new efile rules for DTC being remove, if a client already have DTC on file with CRA, but need to transfer the credit to his son for the first time, is there anything I need to inform CRA?

Thanks,


#2

Have you tried calling the efile help desk? That is what I do to allow for a spouse to claim the other for the first time; however, never tried for a son and Father tho.


#3

If you have access to the son’s file via Represent a Client you will be able to see under the credits section if he is authorized to claim the Disability for a Dependant. If not, as James mentioned, the efile Help Desk may help you, but chances are not unless they already have the dependency relationship established.


#4

That is a good point; however, if the father is claiming the DTC for the son already, there must be a link somehow. That being said, we do know if the child turned 18 and is required to file a new DTC


#5

Sorry, I must have misunderstood. The way I read it, I thought it was the son trying to claim the father’s disability credit for the first time, in which case the CRA might not know of the relationship.


#6

no you didn’t misunderstood… it is the son claiming for his father, as they also live together. But before it was the father claiming it himself, however I check represent a client, the father doesn’t need the credit for like 5 years now, but the previous tax preparer just claiming it on the father return every year instead of transferring it, and both father and son live together all this year and he take care of him also.

I did check the rep a client, son currently cannot claim his dad DTC… as never done before, but like I said I believe son is allow to get the credit transfer to him since he take care of his dad.

I will phone efile help desk.

Thanks


#7

I just phone efile help desk, the guy told me just efile it and the disability department will take care of it. If they need more documentation, they will contact the client at a later date. Is this the answer you guys get from them?

Thanks


#8

The guy at the Help Desk is absolutely wrong. If the son’s file doesn’t show the father as a disabled dependent then the return will certainly fail on efile…almost guaranteed. Realistically, the documentation needed to be sent in prior to tax season so the son would have been set up for the claim. What you’re going to end up doing is e-filing the son’s return without the claim, and then sending in for an adjustment. Otherwise, you are going to paper file the return.

Any of these that I have (child claiming a parent) show up in the Represent a Client as eligible to claim the Disability for then they show the parent or sibling’s person’s name.


#9

SPG, Disability certification is no longer required to Efile… Just efiled a client that had never before claimed disability.


#10

Well, I stand corrected Bert. That happened this year? I missed that memo too… :slight_smile:

My apologies Kytax… I have been through this at least 50 times over my career (usually when a spouse is not set up for the transfer) but it seems things changed in 2015. I guess the Help Desk guy must be right. That’s likely why he’s running the help desk and we are on the other end.


#11

I also did not know that.


#12

s you can see

http://www.efile.cra.gc.ca/l-xclsns-eng.html

It is no longer on the list…


#13

I don’t have time to look at lists… :grin:


#14

I second that. I would have figured it out the next time I wanted to transfer a DTC. Have not had to do that for a couple years or so.


#15

@Snoplowguy - says the guy that lives by lists…


#16

i think you are thinking about Snowplowguy, I am not really sure about this snoplowguy


#17

James and I aren’t the only ones not up to speed here. The “Profile” tax preparation software gives you the following diagnostic warning “If the Transfer of a Disability Amount from a Dependent is a first time claim the return is not eligible for Efile”. I have always hated that warning, because you got it even if you have claimed the transfer for the last 10 years.