Exploring Type 1 Diabetes & The Disability Tax Credit

So, you may be wondering, does Type 1 Diabetes qualify for the Disability Tax Credit? 

Here’s the short answer: Disability Tax Credit application approvals are case-by-case and are not dependent on a singular diagnosis. However, if you’re insulin-dependent, you may qualify under the Life-Sustaining Therapy category.  

If approved, the Disability Tax Credit may entitle you to a sizeable retroactive refund (for up to 10 years). You may receive a refund of up to 25k from the Canadian Revenue Agency. 

In this article, we’ll walk you through everything you need to know about Type 1 Diabetes & the Disability Tax Credit. 

Life With Type 1 Diabetes: Insulin Dependence 

Not everyone diagnosed with diabetes is considered insulin-dependent, but generally, those who are type 1 are always classified as insulin-dependent as these individuals require lifelong insulin injections as life-sustaining therapy. 

For those with Type 1 Diabetes,  the pancreas produces little to no insulin – a hormone essential for converting sugar (glucose) from food into energy for the body. This lack of natural insulin production means that individuals with Type 1 Diabetes are entirely dependent on externally administered insulin to manage their blood sugar levels.

This lifelong dependency on insulin and the need for constant health management is a significant factor in considering Type 1 Diabetes under the Disability Tax Credit in Canada. The daily rigors of managing this condition can be both physically and mentally taxing, and recognizing it under the tax credit can provide much-needed financial support to those affected.

By simply being insulin-dependent, you may qualify for the Disability Tax Credit. 

Type 1 Diabetes & Disability 

Some folks with Type 1 Diabetes may feel uncomfortable with the word “disability,” and we get it. Let’s chat about what this means in the context of Type 1 Diabetes & Disability Tax Credit in Canada.

In the context of disability, it's crucial to recognize the profound impact Type 1 Diabetes has on daily life. Type 1 Diabetes is not just a health condition; for many, it's a life-altering challenge that requires constant and meticulous management. This relentless need for vigilance can significantly affect a person's ability to engage in regular daily activities, often in ways that are not immediately visible to others. 

Diabetes is regarded as an “invisible” disability of the endocrine system.

In Canada, recognizing Type 1 Diabetes as a disability is not about labeling individuals as incapable. Instead, it's about acknowledging the substantial and sustained effort required to manage this chronic condition. The acknowledgment as a disability is important because it opens up avenues for support, including the possibility of qualifying for the Disability Tax Credit (DTC).

The DTC is designed to provide financial relief to individuals with significant health-related challenges.

What Is the Disability Tax Credit? 

The Disability Tax Credit (DTC) is a non-refundable tax credit in Canada designed to support individuals living with disabilities. It aims to reduce the amount of income tax they need to pay, helping to offset some of the higher costs associated with living with a disability. 

The DTC acknowledges the various challenges and extra expenses that can arise, providing financial relief that can be essential for daily living. The credit is available both to those with the disability and, in some cases, to their supporting family members or caregivers. 

Applying for the DTC involves a certification process, where a medical practitioner must confirm the presence of a severe and prolonged impairment.

Type 1 Diabetes & Disability Tax Credit Eligibility

To access the advantages of the Disability Tax Credit, you need to meet the eligibility criteria. 

Approval is granted based on specific categories, including walking, hearing, mental functions, speaking, vision, dressing, feeding, eliminating (bodily functions), or requiring life-sustaining therapy.

For those with insulin-dependent Type 1 Diabetes, you’d fall under the ‘life-sustaining therapy’ category. 

To be eligible:

• Insulin Therapy: The Canada Revenue Agency (CRA) recognizes insulin therapy as a life-sustaining treatment. If you require insulin to manage your diabetes and it takes a significant amount of time each week, you may meet the criteria.

• Time Requirement: The DTC criteria specify that life-sustaining therapy must take at least 14 hours per week to administer. This includes time spent on activities directly related to administering insulin, like checking blood sugar levels, preparing and administering the insulin, and managing diet.

• Medical Certification: A qualified medical practitioner must certify your condition and the time you dedicate to managing it.

• Impact on Daily Life: The DTC isn't just about having a specific condition; it's also about how that condition affects your daily life. For Type 1 Diabetes, this can include the significant time and attention required to manage blood sugar levels and the broader impacts on your daily activities.

Understanding these criteria and how they apply to your situation is crucial for a successful DTC application. Remember, each case is unique, and consulting with a DTC expert can help clarify your eligibility and strengthen your application.

Not sure if you’d be eligible but interested to learn more about your options? Reach out to our Disability Tax Credit experts. We’re happy to guide you through the process and help you gain the support you’re entitled to. 

We Help Maximize Your Approval Chances & Refund Amount

Many deserving folks get their DTC applications denied. We help our clients avoid common application pitfalls. 

At True North, we specialize in simplifying the Disability Tax Credit process. Our expertise means higher approval chances and maximum refunds. We handle the details, review your past tax years for retroactive credits, and advocate tirelessly on your behalf. 

We’ll handle your claim end-to-end. Our goal is to advocate on your behalf. This includes a thorough assessment of your past tax years to identify any potential retroactive credits — which might result in a sizeable refund. 

You can trust True North to be your ally in this journey, helping you access the financial support you deserve.

We navigate both Type 1 Diabetes & Disability Tax Credit everyday. Reach out to our team for more information if you have any questions. We’re here to help!