Six months or more – we’ve heard it all. Many people spend countless hours completing the Disability Tax Credit application and after approval, why is it taking long to receive your benefit?
The truth is, the process for applying and receiving your disability tax credit is quite complex. There are various reasons why you could still be waiting on your credit, we’ve outlined some below. If you would like more information about your specific case, please reach out to us and we will help.
Too much back and forth
One reason you could still be waiting is due to a partial acceptance from the CRA. When you are approved as a partial acceptance, this usually requires additional information you need to gather or clarify before receiving your benefit. This could be a small mistake on your Disability Tax Credit application such as a wrong date/ first or last name or it could be a larger issue such as your application being filled incorrectly.
The CRA also frequently questions the eligibility of another person claiming transfer of DTC when the person approved for the DTC does not have enough income. Again, it is important to use the verbiage the CRA wants to see in your response otherwise the request to transfer may be rejected. Contact us if you have been approved and need to transfer the credit to another person.
Long analysis process
Depending on the complexity of your case, the CRA can take a long time to provide you with a decision on your application. For example, our disability tax credit experts know keywords and phrases the CRA looks for when approving applications. An unclear explanation of your disability and how it affects your daily life can cause delays in the acceptance of your application or the CRA requiring more information/clarification from the medical practitioner.
Lastly, another common delay we see is when you have been approved for a large amount. It is important to send all required documents, and adjustment to prior tax returns to ensure you are receiving the maximum amount you are eligible for. The CRA occasionally sends smaller payments over the course of the tax year rather than one large amount. If you have questions about the types of payments you are receiving and whether you are receiving the maximum amount – contact our experts to review your case.