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

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

 

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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.

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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!