Episode Details

The Disability Tax Credit and RDSP in Canada: Backdated 10 Years, Up to $90,000If someone in your family has a disability, this is my RDSP series in one place. 3 walkthroughs I already posted, stitched together because each one builds on the last and they are easier to follow start to finish.Part 1, the form everything runs through. The Disability Tax Credit tests the effects of an impairment, not the diagnosis. Who can sign the T2201 besides your family doctor. How the 10 year backdating actually runs, from the end of each tax year rather than the day you are approved. The box that gets CRA to adjust your old returns. And the promoters charging 15 to 40 percent of the refund: what they do well, and the bigger money their work stops short of.Part 2, take everything the system gives. Up to $70,000 of grant and $20,000 of bond, and ESDC counts 34 percent of approved people under 50 with the account open. Why a family on $200,000 still qualifies once the child turns 19, why waiting never upgrades an old year, the tax return a 17 year old has to file anyway, using an RRSP contribution to get under the $117,045 line, and why only 2 of the 17 issuers let you hold ETFs.Part 3, the string on the money. The 10 year holdback and the $3 back for every $1 out. Counting back from the year the money is first needed. How withdrawals are taxed and how the provinces treat them, including Quebec, New Brunswick, PEI, and the Canada Disability Benefit in Alberta. Then the question parents ask me most, what happens when we are gone: the RDSP and a Henson trust, and why they work together rather than as alternatives.Free help with the form: Disability Alliance BC, and Plan Institute's helpline at 1-844-311-7526.Sources named throughout: CRA, Employment and Social Development Canada, Finance Canada, the Canada Disability Savings Regulations, Disability Alliance BC, Plan Institute and the CBC.Free on my website, no charge, no membership: The RDSP and Disability Tax Credit Guide, Leaving Money to a Child With a Disability, and the RDSP and Disability Benefits Workbook.

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