Disability Tax Credits
April 18th, 2008
Question: At what tax percentage do I get my taxes back if eligible for the Disability Tax Credit?
My tax bracket is about 35%. I just found that I am eligible for the Canadian Disability amount of $7,021 for the past 3 years. Someone has just told me that my tax refund is based on the lowest tax bracket or rate of about 17%, NOT the 35% marginal tax rate that I have been in. Is he correct?
Answer: The disability amount is a non-refundable tax credit. This credit will reduce the amount of money that is taxable just like your personal exemption amount. These types of credits are always based on the lowest income tax bracket which federally is 15%.
The credit in essence will shift some of your higher income to a lower bracket and you will see a savings.
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Disability Tax Credit Services – Winnipeg
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