Assistance in the form of tax credits for individuals diagnosed with diabetes.

The management of a chronic medical condition such as diabetes can be a costly exercise, and as a result, governing bodies have established some tax credits to reduce the financial burden on eligible Canadians living with diabetes. Certain individuals with diabetes can take advantage of federal and provincial or territorial tax credits to lower their expenses.

Diabetes Canada is an ardent supporter of equal access to Disability Tax Credit (DTC) and comparable programs for people with diabetes, hence the inclusion of those that are eligible to receive the DTC. The recent announcement by the Government of Canada includes the expansion of qualifying activities that type 2 diabetes insulin users can use towards achieving the minimum 14-hour eligibility requirement, as well as the granting of eligibility to type 1 diabetes patients based on their diagnosis.

The DTC is a tax credit that is not refundable for people who have disabilities or require life-sustaining therapy, or their caregivers. Insulin users with diabetes typically apply for this credit under the category of life-sustaining therapy.

For taxpayers who apply from 2021 onwards, those with insulin-dependent type 1 diabetes are eligible to apply for the DTC as life-sustaining therapy by submitting the T2201, Disability Tax Credit Certificate form, signed by a qualified medical practitioner. The 2021 list of qualifying activities is available on the Canada Revenue Agency (CRA) website. Individuals with type 2 diabetes insulin users are also now eligible under the life-sustaining therapy category, but with the additional requirement of indications of average-time spent on CRA permitted activities.

For applications prior to 2021, individuals with insulin-dependent type 1 or type 2 diabetes can apply for the DTC for up to 10 years if they have spent an average of 14 hours weekly on the permissible activities for those years. The CRA website provides a list of eligible activities.

Other vital programs that eligible DTC recipients may access include the Registered Disability Savings Program (RDSP), a tax-protected savings plan that attracts government grants and bonds similar to the Registered Education Savings Program, and the Child Disability Benefit, a tax-free monthly payment to caregivers of qualifying children under 18 years old.

Furthermore, some provincial and territorial governments offer tax credits or comparable programs. Information about these may be found on governmental websites or by consulting a tax professional.