Many families have complex planning needs due to a special needs child or adult. In today's environment, there are a myriad or programs and regulations to be aware of when formulating a plan of this nature. We have been consulting with families in this regard, and have developed a specialized team of lawyers, accountants, notaries, insurance specialists and more that are well versed in these areas. 

Here are some of the most pertinent programs that you should look at when you have a special needs child. Please feel free to contact us for further information or to review your current situation.

Tax Credits

There are many unique tax credits and deductions when dealing with a special needs child or adult. You may want to look further at the following;

Disability Tax Credit - This is a very valuable credit and is also the prerequisite for the RDSP as below. To be eligible for this credit the Individual must have a severe and prolonged impairment in physical or mental functions. This is a non-refundable tax credit which reduces income tax payable. It can be transferred as well to a parent if they are dependent on you for all or some of the basic necessities of life. To apply for this status you must complete form T-2201. There is also an additional application that you will need to receive the status on the Quebec side as well. The form but be completed by a registered practitioner such as a doctor or therapist depending on the diagnosis.

Disability Supports Deduction - This is available only to the disabled individual themselves. Any expenses incurred in order to go to school, work or research grant are deductible against that income. The following list of all available expenses is available from the CRA.

Amount for Infirm Dependent Over 18/Caregiver Amount - You can claim only one of these for either you or your spouses dependent children or grandchildren over 18 with a severe and prolonged impairment. The dependents income must below a certain threshold as well.

Medical Expenses - Typically, when dealing with disabled individuals. there are many medical bills. You can claim medical expenses in any 12 month period ending in the current tax year and it does not have to be done by calendar year. Expenses that can be reimbursed do not qualify for this credit. The amount you claim is the total of medical expenses minus the lesser of 3% of the dependents net income or $2,024. based on the new budget, the annual maximum of $10,000 of expenses no longer applies. Please follow here for all eligible medical expenses. Moreover, there is an amount that is refundable if there are no taxes payable for lower income families whose family income is below $45,255.

Childcare Expenses - Any expenses paid to care for your child so that you may earn an income from employment or a business are deductable. This deduction is for children under 16 unless they have impairment in mental or physical functions. On the Federal side, these expenses must be claimed by the higher income spouse. If there is a spouse with no income, the credit is lost. In Quebec, the amount is refundable and you can receive as much as 75% of these expenses back. Moreover, you can receive these payments in advance. Eligible expenses include caregivers, daycare centres and camps whose primary focus is to care for children. The $7 per day daycare does not qualify for childcare expenses in Quebec.  

Tuition, Education and Textbook Amount - When the individual has an impairment, they are able to claim the full-time amount even when undergoing part-time studies. These are amounts paid for post-secondary tuition and must be more than $100. This amount can be transferred to the parent or grandparent if they do not need it.

GST/HST Exemption - Goods and services utilized by disabled individuals should be exempt from GST and duties. If you did pay them, you will be able to claim a credit for the amounts paid. Services include homemaker services, meals on wheels, recreational programs for persons with disabilities.

Child Fitness Tax Credit - Fees related to a child's physical activity can be claimed to a maximum of $500 per year. If the child is eligible for the disability tax credit an additional $500 can be claimed until 18 years of age.

Working Income Tax Benefit - This is a refundable tax credit for low-income Canadians to enter or stay in the workforce. There is an additional amount for disabled individuals. For an individual, they must have work income of over $1,200 and they will receive a benefit of $1,560 plus a disability amount of $482. This amount can be received in advance if applied for.

Adapted Work Premium - This is a Quebec credit for individuals that have a severely limited capacity for employment. The individual must have received an allowance under social solidarity within the past five years or have been eligible for one to qualify. You must have work income over $1,200 and there is a benefit of $1,024.

Registered Disability Savings Plan (RDSP)

This is a cornerstone when planning for the long-term care for an individual with special needs. It is a federal government program, and full details can be found here. Essentially, you can contribute up to $200,000 over the lifetime of this plan and the government will match your contributions up to 300%. Moreover, for lower income families, there is an additional annual bond of up to $1,000. The money grows tax-free while in the plan and must be withdrawn by the age of 60. The only prerequisite is that the beneficiary is eligible for the disability tax credit (DTC). The beneficiary must be a Canadian resident and if over 18 have the ability to contract themselves unless someone has a regime of protective supervision for them.

Social Solidarity

This is a provincially administered program for last resort financial assistance for individuals that have a limited capacity for employment. There are certain qualifications for this program, namely income and asset tests. The individual must be over 18 unless they are married or have a dependent child. They cannot have liquid cash of over $2,500 or aggregate assets of over $130,000 including a home and RRSP's. There is a monthly benefit of close to $900. See here for further details.

Excise Gas Tax Credit

If you have a permanent mobility impairment and cannot safely use public transportation (as certified by a qualified medical practitioner), you can apply for a refund of part of the federal excise tax on the gasoline you buy. For further information on this program and the required form, click here.

Regime of Protective Supervision

When a child turns 18, they are deemed to be emancipated and able to manage their own affairs. When the individual is disabled and cannot manage their needs autonomously, the parents have no legal rights. An application must be made to become an advisor, tutor or curator for the adult child. You must act in the best interest of the child and produce an annual report to the tutorship council and the Public Curator. The rights bestowed upon you must be reassessed every three or five years depending on the powers you were granted. This allows parents to make financial and health decisions for their adult children who are incapacitated