PLANNING FOR THE FUTURE: Province edits tax system to benefit people with disabilities

The Georgian (Stephenville, NL), no. Vol. 38 No. 15
Tuesday, April 8, 2008
PLANNING FOR THE FUTURE: Province edits tax system to benefit people with
disabilities
By Sabrina Skinner

Newfoundland and Labrador is one of two provinces to recently implement changes to their provincial tax systems, allowing families of persons with disabilities to avail of the new Registered Disability Savings Plan.

British Columbia was the first to change its provincial tax laws to allow families of people with disabilities to save money for their children without having those funds weighed against eligibility for other income support programs.

Shawn Skinner, provincial minister of human resources, labour and employment says it was important to the province to make these changes now. "We felt it allowed people to have independence, it allowed people to plan for the future, it allowed people to look after their own needs," he says.

Minister Skinner says it is his understanding that mechanisms allowing the start of a Registered Disability Savings Plan are being worked on.

Ray McIsaac, president of the Newfoundland and Labrador Association for Community Living, says he welcomes the changes. "Hopefully the leadership our government has shown on this will inspireother provinces within Atlantic Canada and throughout Canada to similarly take action so that it becomes a truly national program," he said.

The Registered Disability Savings Plan was announced in the 2007 federal budget, but each province has to specifically agree to change their own tax laws to ensure other levels of income support for persons with disabilities remain intact.

"The term we use is 'flow through,' so what the province has done has allowed the benefits of the disability programs to flow through the individuals without it being clawed back at the provincial level," says Mr. McIsaac.

The changes will make it easier for families of persons with disabilities to provide for their children after they are no longer able to provide support and care, thus enabling the children to continue to live in and be involved with the community.

***

In addition, the government of Newfoundland and Labrador announced last week they will provide funding to the association to educate parents about how to set up support trusts for their disabled children.

Mr. McIsaac says these trusts can play a huge role in long term planning, as they can be set up to support children until they reach the age where their Registered Disability Savings Plans will come through, which is at the end of a ten-year vesting period.

These funds will also not be used to assess whether or not a person with a disability qualifies for income support programs.

Mr. McIsaac notes the changes as important social policy measures.

"This is an important policy move as well in getting us past the notion that you're either completely independent or you're receiving state support. And the entry fee to getting state support has historically been abject poverty," he says.

In order to provide eligible families or persons with information about these changes, the provincial government has provided the association with a grant to educate people about the programs and help them learn more about RDSP's, support trusts, and how to plan for their children's future.

Mr. McIsaac encourages people wishing to learn more about these new initiatives to call Darlene Nash at the association's St. John's office at 1-800-701-8511 to be added to a mailing list for updates and further information.

Mr. McIsaac says the association also plans to hold information sessions around the province to better educate families on how to save for their children's future.

Revenue Canada notes the plans should be available sometime in 2008.

How the RDSP works

Here's a quick look at the Registered Disability Savings Plan:

Any person who is eligible for the Disability Tax Credit and is a Canadian resident is eligible for the RDSP; or a parent or legal representative of a person who is a resident of Canada and eligible for the Disability Tax Credit;

Anyone can contribute: parents, friends, neighbours;

There is a lifetime maximum of $200,000 and contributions can be made until the end of a person's 59th year.

Grants and bonds

Also notable are the Canada Disability Savings Grant and Canada Disability Savings Bonds:

Through the Canada Disability Savings Grant program, the federal government will match contributions for 20 years at a rate of 100, 200 or 300 per cent, depending on a family's income and their contributions;

The Canada Disability Savings Bonds will be paid at a rate of $1,000 per year where a family's net income is not more than $20,883. There is a $20,000 lifetime maximum contribution.

The grant and bond programs will contribute to a person's RDSP fund until the end of their 49th year.

Source: Canada Revenue Agency and 2007 federal budget

C 2008 The Georgian (Stephenville, NL). All rights reserved.

Newfoundland Exempts RDSP!

FYI

Newfoundland Exempts RDSP

April 4, 2008 in * Province - Newfoundland by Doug Brodhead

The provincial government of Newfoundland and Labrador has amended its regulations to exempt the RDSP from the calculation of income support benefits. We congratulate the Newfoundland and Labrador government for taking this very important step in helping improve the financial security of people with a disability.

As well, they have provided $85,000 to the Newfoundland and Labrador Association for Community Living to increase awareness of these new exemptions and to improve financial literacy of individuals and families.
To read more about this recent development make sure to visit the Government of Newfoundland and Labrador’s website at http://www.releases.gov.nl.ca/releases/2008/hrle/0331n06.htm
Source: http://rdsp.wordpress.com/

----------

Melanie Thomas
Executive Director
Newfoundland & Labrador Association for Community Living
P.O. Box 8414
St. John's, NL A1B 3N7
Tel: (709) 722-0790 Fax: (709) 722-1325
Toll Free: 1-800-701-8511

Email: melaniethomas@nf.aibn.com
Visit us on the Web! www.nlacl.ca

Supporting persons with developmental disabilities and their families for over 50 years!

NL Association for Community Living: INDIVIDUALS WITH DISABILITIES TO BENEFIT FROM NEWLY ANNOUCED SAVINGS AND TAX PROGRAMS

Newfoundland and Labrador Association for Community Living P.O. Box 8414 St. John’s, NL A1B 3N7 Tel: (709) 722-0790 Fax: (709) 722-1325 Toll Free: 1-800-701-8511 Email: nlacl@nf.aibn.com

MEDIA RELEASE

FOR IMMEDIATE RELEASE

INDIVIDUALS WITH DISABILITIES TO BENEFIT FROM NEWLY ANNOUNCED SAVINGS AND TAX PROGRAMS

(April 3, 2008 – St. John’s) The recent announcement by the provincial government to permit families to use the Registered Disability Savings Plan (RDSP) without losing provincial income or disability supports is a positive life changing event for many families. This is the reaction from Ray McIsaac, President of the Newfoundland and Labrador Association for Community Living (NLACL), a parent of four, two of whom are adults with autism.

Newfoundland and Labrador is the second province in Canada to allow individuals to fully benefit from the recently proclaimed Canada Registered Disability Savings Plan (RDSP) without claw-backs. British Columbia is the other province taking early leadership on this critical issue. It is hoped this early acceptance will have a ripple effect and inspire other provinces and territories to adopt similar measures thereby empowering families to plan for the future.

Parents and families now have two significant opportunities to plan financially for a time when they are no longer living or are unable to act as primary care givers. In addition to the RDSP the province also allows funds in Support Trusts to be exempt from means-testing of income or disability supports such as social assistance and home support. The goal of both these measures is to encourage planning and help families deal with the exceptional financial costs associated with disability.

A second measure announced by the provincial government supports the NLACL to provide individuals and families with plain language information on how to establish these Plans and Trusts and to explore how families can use savings, insurance and estate planning to secure the future financial security of their loved ones.

People who qualify for the Federal Disability Tax Credit (DTC) in the year in which contributions to the plan are made are eligible for the RDSP. NLACL stresses the importance of individuals with disabilities and families exploring their eligibility for these and other valuable tax credits. In addition to savings features the federal government also provides free annual low income bonds and grants available over the life of the plan. Individuals earning under $20,833 a year will qualify for an annual $1000 bond over the course of 20 years. For individuals who are able to invest in the plan, total government bonds and matching contributions of $90,000 can be realized over the course of 20 years.

The NLACL is also very encouraged by the newly announced Working Income Tax Benefit (WITB) which provides low income earners and persons with disabilities with a $500 tax refund.

Melanie Thomas, Executive Director of NLACL says people who would like to get more information should call Darlene Nash at 1-800-701-8511 to be placed on a provincial list serve or to receive information and updates on the RDSP and related initiatives via mail.

-30-

For more information contact:

Melanie Thomas, Executive Director

NL Association for Community Living

Tel: 709-722-0790

NL: Province Supports Tax Measures and Support Trusts for People with Disabilities

http://www.releases.gov.nl.ca/releases/2008/hrle/0331n06.htm

 

Government Home Search Sitemap Contact Us

Human Resources, Labour and Employment March 31, 2008 Province Supports Tax Measures and Support Trusts for People with Disabilities The Provincial Government has amended regulations to support improvements to the tax system for individuals with low incomes, and people with disabilities and their families by exempting both the federal Working Income Tax Benefit and the Registered Disability Saving Plan from the calculation of Income Support benefits. The two exemptions are effective April 1, 2008. Further, the Provincial Government is providing the Newfoundland and Labrador Association for Community Living (NLACL) with a grant of $85,000 to promote, increase awareness and develop the capacity of individuals with disabilities and their families to fully realize these benefits through the establishment of a Support Trust. "These two income support exemptions will help individuals with low incomes to take advantage of work opportunities and improve their quality of life, and it will encourage family financial planning for individuals with disabilities," said the Honourable Shawn Skinner, Minister of Human Resources, Labour and Employment. "Government is pleased to work with the Newfoundland and Labrador Association for Community Living in the development of their related public awareness and education campaign. This will help individuals with disabilities and their families understand the benefits of establishing a Support Trust to better secure their financial future." A Support Trust is a recognized financial tool to enable individuals with disabilities and their families to plan, invest and save for the future. The NLACL will conduct research to identify resources, and develop information guides to help families understand and implement a Support Trust. The NLACL will design, plan, develop and deliver a series of regional and local workshops to further promote awareness within the community and help families learn the steps associated with the establishment of a Support Trust. "This is a terrific announcement", said Ray McIsaac, President of Newfoundland and Labrador Association for Community Living. "Parents and families now have opportunities to plan financially for a time when they are no longer living or are unable to act as primary caregivers. They can leave funds directly to their family members that can not be clawed back from income support. The grant enables our association to support individuals and families with plain language information on how to use savings, insurance and other tools to secure their future." Through the Poverty Reduction Strategy, the Provincial Government is firmly committed to ensuring that the tax system is responsive to the needs of families with low income and persons with disabilities, and that benefit enhancements are made available to meet their needs. -30- Media contacts: Ed Moriarity Director of Communications Department of Human Resources, Labour and Employment 709-729-4062, 728-9623 edmoriarity@gov.nl.ca Ray McIsaac President Newfoundland and Labrador Association for Community Living 709-643-3470 2008 03 31                                                      2:30 p.m.

----------

Melanie Thomas
Executive Director
Newfoundland & Labrador Association for Community Living
P.O. Box 8414
St. John's, NL A1B 3N7
Tel: (709) 722-0790 Fax: (709) 722-1325
Toll Free: 1-800-701-8511

Email: melaniethomas@nf.aibn.com
Visit us on the Web! www.nlacl.ca

Supporting persons with developmental disabilities and their families for over 50 years!

 

 

FW: Critical information on the Registered Disability Savings Program

 

Hi everyone:

 

The most important first step in being prepared to take advantage of or participate in the Canadian Disability Savings Program is to ensure you are eligible. The eligibility standard to be used wll be those persons who qualify for the Disability Tax Credit.

 

Please refer to the below link to get further information

 

Thx

Ray McIsaac

 

 

 

http://rdsp.wordpress.com/ 

 

 

Disability Tax Credit Certificate: How Long Does It Remain Valid and When Do I Have to Re-apply?

March 13, 2008

This question has been coming up a lot lately as more and more people apply for the Disability Tax Credit (DTC) to become eligible for the Registered Disability Savings Plan in 2008. We’re hopeful that the RDSP will be available in 2008, and it is important that people sign up for the DTC as it can take longer to be processed and there will probably be a greater number of people applying in the coming months. By signing up for the DTC early you can ensure that you are eligible to receive the RDSP as soon as it is available.

 

 Having spoken with people who currently receive the DTC, it has become apparent that there is a wide variety of time requirements when it comes to reapplying. While some people have been able to receive the certificate for a number of years without a requirement to re-apply, others have had to re-apply on a more regular basis. This led us to question what the guidelines were for the Canadian Revenue Agency when they evaluate the amount of time a DTC certificate will be valid before a recipient needs to apply again.

 

 I spoke with someone at the Canadian Revenue Agency and they told me that the application for the DTC is first processed to see whether the applicant fits the guidelines outlined in the DTC criteria for eligibility. After identifying that an applicant is eligible, the application is then reviewed by the Canadian Revenue Agency Medical Board. This review generally takes 3-6 months to be completed, but varies greatly depending on the complexity of the case.

Following the review process the CRA Medical Board will assign an amount of time in which the certificate will be valid. The CRA outlined that this time designation is based on certain factors related to the disability, but would not comment on what these factors were and implied that they were dealt with on a case-to-case basis. They identified that the average time allotted to a DTC certificate is generally 3-4 years, but that this length can vary greatly depending on the Medical Review Boards recommendations.

Getting ready for the RDSP: Why it’s important to apply for the Disability Tax Credit

February 19, 2008

As the Registered Disability Savings Plan (RDSP) received royal assent and continues to gain momentum within the provinces, it is becoming increasingly likely that the RDSP may be available by late 2008 (as forecasted by the federal government). 

It is now becoming more and more important for people to apply for the Disability Tax Credit (DTC) which is the eligibility criteria for the RDSP.  If you want to be able to set up a RDSP for you or your family member, it will be essential that you apply for the DTC (before or along with this upcoming 2007 tax return). 

 

 This means that if the RDSP becomes available in late 2008, you or your family member will be able to set up a RDSP and begin receiving the Canada Disability Savings Grant and Canada Disability Savings Bond as soon as possible.  Only those with a DTC will be eligible to establish a RDSP and receive the Grant and Bond in 2008.  The Canadian Revenue Agency looks at your prior year’s tax return and DTC for the RDSP and corresponding Grant and Bond.

 

 How do I apply and qualify for the Disability Tax Credit?

For this particular credit you will need to get the T2201 Disability Tax Credit Certificate from the Canadian Revenue Agency (CRA) and apply.  Unlike many of the other available credits, rebates and deductions, this tax credit cannot be applied for on your tax return. 

 

 In order to receive a copy of the T2201 form you should visit the CRA’s website (www.cra.gc.ca/forms) or call 1-800-959-2221.  Once you download or receive your certificate, you will notice that there are two portions to the T2201 form, Part A and Part B.  Part A is the personal information that must be filled out by the applicant (or guardian), while Part B must be filled out by a qualified practitioner who will certify the effects of your impairment.  The CRA defines a “qualified practioner” as a certified medical doctor, optometrist, audiologist, occupational therapist, physiotherapist, psychologist and a speech-language pathologist.

 

 Once you have completed your portion of the form and your qualified practitioner has completed their portion of the form, you can send it in to your local CRA tax office (check http://www.cra-arc.gc.ca/contact/tso-e.html or call 1-800-959-8281).  You can send your T2201 Disability Tax Credit Certificate any time, but it should be sent before or with your tax return so you can be accepted as soon as possible. By sending your form before you file your tax return, you may prevent a delay in your assessment. The CRA will review your application before they assess your return.

 

 Once the Disability Certificate is obtained and accepted by the Canada Revenue Agency, it will continue to be valid for each subsequent tax year until the person’s condition changes. Therefore, it is not necessary to obtain a new Disability Certificate each year, unless so requested by the CRA.

 

 So make sure you or your loved one apply for the Disability Tax Credit! 

 

 

Inclusion Video

Hello All,

Below you will find a wonderful link to a video on inclusive education  http://www.youtube.com/watch?v=Xfg1pswiOgM&feature=related .

 

The video is produced by a family and delves into some of the personal rewards and challenges involved in building inclusive education. A number of unique perspectives from individuals, families, and educators are shared.  I hope you will take the few minutes to watch the preview. It's sure to inspire and uplift!

 

All the best,
Melanie

 

Disability, Mothers and Organization: Accidental Activists

 

Paulette Berthiaume, Audrey Cole and Jo Dickey are chronicled in Melanie Panitch's new book Disability, Mothers and Organization: Accidental Activists.  

Mothers of children who have intellectual disabilities become accidental activists.

 

 When Audrey Cole first joined her local Ontario Association for Community Living in 1967, she had no idea that her actions would lead her to play a defining role in amending the Canadian Human Rights Act. Originally, her reasons for joining the association were personal.  She was raising a young son who has a disability and her own fight for his inclusion sought her to seek out people dealing with the same problems. Joining her local association at a time when the Canadian government was crafting human rights legislation, Cole became very aware that disability was not included as grounds for discrimination. Outrage at the gross inadequacy of the bill prompted Cole to tackle the issue herself.  Through her local and provincial association, she crafted a resolution urging the Canadian Association for Community Living (CACL) to make representation to ensure that the bill was amended to include disability. Her efforts resulted in a change to human rights legislation to include disability, which later influenced the Charter of Rights and Freedoms.

This “accidental activism” is one of three examples cited by Melanie Panitch in her book, Disability, Mothers and Organization: Accidental Activists.

In her book, Panitch chronicles three of the founding mothers of CACL, whose struggles for their own children’s rights led them to fundamentally altering Canadian society as a whole. “The concept of activist mothering when applied to disability fits very well,” says Panitch, who wrote her PhD on the subject.Panitch says her interest in the topic dates back to the 1970s, when she was a volunteer with the Ottawa Association of Community Living.“When working in Community Living I was particularly interested in how mothers became activists even though they didn’t necessarily start out that way,” explains Panitch.“In the beginning, they were just having a family.  When disability entered the picture just to do their mothering work, to be a mother meant that they had to fight for everything.” Panitch also goes into great detail on the establishment of the CACL from its grassroots organization to its establishment at the national level in 1958. 

CACL will be celebrating its 50th anniversary this November in Ottawa.

Panitch is the director of Disability Studies at Ryerson University.  Disability, Mothers and Organization: Accidental Activists is now published (Routledge, 2008).