Written by Preethi Gopyshankar

Raising a child with disabilities comes with unique challenges, including financial strain. In Canada, families who have children with disabilities may be eligible for financial assistance through the Child Disability Benefit (CDB). However, interpreting the eligibility requirements, and understanding the benefits along with the process for back payments can be challenging. This blog post discusses the CDB eligibility requirements, how much financial assistance families can receive, the process for back payments and whether ADHD qualifies for Child Disability Tax Credit (DTC). 

What qualifies a child for disability benefits?

To be eligible for CDB, children must fulfill specific requirements under the Canada Child Benefit (CCB) and the Disability Tax Credit (DTC) programs. These two programs collaborate to provide financial aid to families raising children with disabilities. 

Eligibility for CCB

• The child must be under 18 years old. 
• The applicant (parent or guardian) must be the primary caregiver 
• Caregiver must be a Canadian resident with citizenship/permanent resident status 

It is vital to note that only one parent or guardian can obtain the CCB for a given child. This benefit is intended to provide direct assistance to families, despite their income, though higher-income families may receive decreased amounts. 

Eligibility for DTC

The DTC is available to individuals who have:

• Severe or  sustained impairment affecting daily tasks 
• Medical certification confirming a 12-month or longer duration 

The DTC includes several categories of disability:

• Walking 
• Mental functions 
• Getting dressed 
• Feeding 
• Eliminating (bowel or bladder functions)
• Hearing 
• Speaking 
• Vision 
• Life-sustaining therapy 

A medical professional must confirm that the child’s disability has been present or is expected to be present for at least 12 months, and the child has significant limitations in two or more of the listed categories. 

Once the child is approved for the DTC, they become eligible for the CDB, which offers further financial aid to families.

How much is Canada's child disability benefit?

The CDB amount received by a household is determined by the number of eligible children in the family and their adjusted family net income (AFNI). The CDB was established to provide financial relief to families with children who have disabilities, with benefits varied according to income levels.

CDB payments are reviewed and revised annually, with the benefit year lasting from July 1 to June 30 of the following year. Every July, the Canadian Revenue Agency (CRA) calculates the payments using the family’s AFNI from the previous year.

For example, for the benefit year from July 2024 to June 2025, families can receive up to $3,322 per child who qualifies for the DTC. These benefits are paid monthly, with a maximum of $276.83 per month for each eligible child. If the family has more than one child who qualifies for the benefit, the payment amount will increase accordingly.

The CDB aims to ease the financial burden for families with children who have disabilities. While the amount may seem modest, it can make a substantial difference in helping families cover the additional expenses involved with parenting a child with special needs.

For instance, a family with two children meeting DTC criteria and an adjusted net income of $45,000 may receive monthly payments totaling $553.66 ($276.83 per child).

Does the child disability benefit back pay?

Yes, the CDB makes back payments, which benefits families who were unaware of the benefit or missed the opportunity to apply in previous years.

When a family initially applies for the CDB, the CRA will automatically calculate payments for the current and previous benefit years. If a family feels they should have been receiving payments in the past but did not apply, they may request back payments. The CRA typically enables families to receive benefits for up to 10 years of missed payments, but families must formally request back payments through their tax centre.

It is crucial to note that back payments are determined based on the family’s adjusted net income from past years, so the amount varies on income and the number of eligible children at the time. Families should keep thorough records of their applications and interactions with the CRA to ensure they receive the maximum benefit to which they are entitled. 

Does ADHD qualify for a child disability tax credit?

Attention Deficit Hyperactivity Disorder (ADHD) is a complex condition that may or may not qualify a child for the Disability Tax Credit (DTC), depending on the extent and impact of the condition. The CRA recognizes ADHD as a disability, but for a child with ADHD to qualify for the DTC, the disability must be severe enough to fulfill the qualifying requirements.

ADHD can present in a variety of ways, and its severity varies widely from one individual to another. For a child with ADHD to qualify for the DTC, the condition must:

• Be severe and persistent, lasting for at least 12 months, and
• Significantly impact the child’s ability to perform at least two major life activities mentioned earlier, such as dressing, feeding, or mental functions.

For example, a child with severe ADHD may struggle to focus on regular tasks such as getting dressed or completing a morning routine. These limitations would be addressed when determining whether the child meets the criteria for the DTC Even if the child is diagnosed with ADHD, they may not be eligible for the CDB if they do not meet the criteria.

Families applying for the DTC on behalf of a child with ADHD must show thorough medical evidence outlining how the condition affects the child's ability to conduct daily tasks. The medical practitioner must provide a detailed description of the condition's severity and long-term implications. The application may be declined if there is inadequate paperwork or the condition does not match the requirements.

Applying for the Child Disability Benefit and Disability Tax Credit 

Filing for the Child Disability Benefit and the Disability Tax Credit requires careful focus on detail, and families may wish to consult a tax professional or adviser to guarantee that they completed the application process correctly.

The DTC application must be submitted through the CRA. A doctor or medical practitioner must complete the medical component of the form, providing specific details about the child’s condition and the limitations it causes.

Once the DTC is granted, families can apply for the CDB through their regular CCB application. If the child qualifies for both the CCB and the DTC, the CDB payments will be immediately processed. 

Back payment requests must be filed with the CRA, along with any supporting evidence from previous years. Families should provide all the necessary information to minimize delays in processing.

Final Thoughts 

The Child Disability Benefit is a crucial financial resource for Canadian families raising children with disabilities. By understanding the eligibility criteria, the application process, and how back payments work, families can ensure they receive the full support they are entitled to. 

While ADHD may be eligible for the Disability Tax Credit under certain conditions, each case is unique, and families should be prepared to provide present medical documentation to support their application. This procedure may be time-consuming, but financial help can be an invaluable resource for families in need. 

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