Transfer of Disability Tax Credit

As per the Canada Revenue Agency (CRA): Transferring the credit 

If the person with the impairment does not need the entire disability amount to reduce their income tax, they may transfer some or all of the disability amount to the supporting family member who is identified on the DTC application form (Part A question 2).

Who qualifies as a supporting family member

If the supporting family member who wants to claim the credit was not identified on the initial application, they can submit a written request to the CRA for the transfer. This request must be signed and include details of the support they provide for the basic necessities of life.

For guidance, please see our TurboTax FAQ How do I claim the Disability Tax Credit transferred from my dependant?

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To see the deduction for disability in Turbotax please do the following:

Look at the left hand navigation pane then find the word deductions.  Click the deductions button and look for disability near the bottom.  (Right above students.)  The T1 / Federal worksheet line numbers for the disability are found on line 31600 and the disability transfer is found at line 31800.

Hi and thanks for the reply.  I am familiar with the material you have referenced, however, it does not answer my question.  My question is "Where do I enter the transfer of the DTC on the tax return of the person transferring the credit?"  The return shows the $8870 tax credit on line 31600.  However, I want to claim $0 on line 31600 and transfer that credit to the daughter.  How do I do that on the tax return of the person transferring the credit?

Thanks very much.

The transfer does not go on your return only on the transferee's return if the Disability Tax Credit(DTC) agreement was already accepted with this person's name to be transferred (adult daughter and not mother). If the mother's name is on the DTC then only she can get the transfer.

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Got it.  I can then just override line 31600 and set it to $0 so it doesn't automatically enter $8,870.

Thanks for your help!  Much appreciated.

No, to claim the Disability Tax Credit (DTC) and then transfer, you need to have the amount in line 31600 of the deceased person's tax return. If the amount is not there, the transferee will not be able to transfer it on their line 31800 in their return.

Here is a TurboTax video on how to claim the DTC: How do I claim the Disability Tax Credit?

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Doesn't that mean both taxpayers are claiming the DTC?  I don't understand how that gets resolved.

It means one claims the Disability Tax Credit amount and the other claims the left over unused part to transfer. The system at the Canada Revenue Agency will compare the file online to make sure the right person, who has been included in the original agreement, will be the one to get the transfer when applied for as seen in this Canada Revenue Agency link: Claiming the credit.

In order to help you with this situation, we believe your best option is to contact our telephone support team if you're in need of further assistance, as they have the option to view your screen to help and guide you. To contact them, please follow this link: Contact Us. 

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I phoned CRA about this and they advised that the taxpayer needs to claim the $8,870 amount on line 31600 and CRA will see that the full amount is not needed to be claimed and can therefore be transferred to the daughter.  The daughter will claim the amount that can be transferred on line 31800 of her tax return.  So, in effect, the Disability Tax Credit will appear on both of their returns.  Seems odd but that is the way it is to be done.  Thanks to all who have responded, especially TurboTaxGinette, who had the correct response, which I questioned 😃

Thank you for your feedback. I am happy to see that your DTC will be entered correctly so it can be of benefit.

Thank you for choosing TurboTax.

I also am thankful for yourself and TurbotaxGinette for promting me to look more into this credit as well!!!

I now have the right understanding!!  Thank you both! 🙂

I am having the same problem when I transfer my son’s disability tax credit to myself. My refund amount has increased, and the credit is showing on my return but his refund amount didn’t decrease and the credit is also still showing on his return. So are you saying you just netfile like this and the returns get reassessed and adjusted by the CRA?

so we won’t know what my sons refund is until they get reassessed? Because the amount that I’ve transferred to myself isn’t reflected on his return yet?

So are you saying it will get reassessed by the cra after we netfile?  So we won’t know the true amounts of each person’s return until they get reassessed?

Hi, 

I did exactly the same in my last year report. But when I get my NOA, I was told that I cannot allow the DTC amount transferred to me. I called CRA, I was told that disabled person shouldn't claim the amount in his Tax report. But Turbox Tax looks like I couldn't do so except override the credit amount in his tax report. But once I am override the amount in line 31600, I couldn't submit the tax report through Netfile.

Well, this is different from the advice I was given by CRA. I may end up having to speak to CRA after they assess the returns. It’s not ideal. 

You can always override the field just to see how much your son’s refund will be but don’t file it that way. I’m a CPA but not a tax expert so take this for what it’s worth. Good luck!

If you are transferring the DTC from your dependent- Then you will need to make sure that your Dependent is entered on your tax return. Then you will claim the DTC transferred from your dependent following the steps in the article below: 

How do I claim the Disability Tax Credit transferred from my dependant?

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I believe it's line 31800 to enter the amount for a DTC transfer 

This topic shows solvd, but I still don't know how to do that. I have the same suituation.

Should we claim the DTC on both taxer ( self and dependant )? I believe we all know how to do that, but just don't know how to not claim the DTC for himself after the DTC has been transfer to someone who qualify.

If both person claim DTC at the some time, just take too much time to make adjustment later if it's not correct.

Turbotax should post the guide to do that. This is so frustrating.

I agree with you. This is far from perfect. After all of this I am still not able to have the dependent claim the amount that can be transferred. When completing the worksheet on the dependent’s return, it shows the taxpayer’s income is too high to get the Disability Tax Credit. So now I have a situation where the taxpayer does not have enough income to use the DTC but has too much income for the dependent to claim it. I cannot figure it out now. Something seems screwed up with this. It shouldn’t be this difficult. 

If you are still not able to resolve this issue, please contact our phone support team at 1-888-829-8608.

This doesn't work. Info is transferred from dependant but stays on dependants return as well. When the cra audits, you get a letter stating the following.

Not correct. I did it this way and below is the cra response. My daughter was to get approximately $3600 back, ended up only $1800. 

Unfortunately, the Canada Revenue Agency has information on file that someone else is claiming the dependant.

In order to help you with this situation, we believe your best option is to contact our telephone support team for further assistance, as they have the option to view your screen to help. To contact them, please follow this link: Contact Us. 

You may need to show the support person all three returns, ie: dependant, spouse and yours.

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