TurboTax FAQ
TurboTax FAQ
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How do I claim the disability tax credit transferred from my spouse/partner or dependant?

To claim the disability tax credit, you must have an approved DTC application (form T2201) on file with the CRA. The form must be completed by the person claiming the credit and a medical professional. If you’re transferring the credit from your spouse/partner or dependant, section 4 of the form must be signed by the person with the disability.

To claim the Disability Amount transferred from your spouse/partner

The spouse/partner with the disability must claim the disability amount first, as much as is needed to reduce their balance owing to zero. Only any unused amounts can then be transferred to their spouse or common-law partner.

If you’re preparing your returns together (sometimes referred to as a joint or coupled return), TurboTax automatically claims the disability amount for the spouse/partner with the disability. If there’s an amount left over, TurboTax automatically transfers this amount to the other person’s return. So, there’s nothing you need to do to trigger a transfer.

If you’re preparing your returns separately, you’ll need to enter some amounts from your spouse’s return, so that TurboTax can calculate how much of the disability credit is available for transfer to your return.

Here’s what to do:

  1. In the upper-right corner, select Find.
  2. Type Federal spouse, select Federal Spousal or Common-law Partner Transfers from the list and then select Go.
  3. On the Details of Your Federal Spousal or Common-law Partner Transfers step, select Continue.
  4. In the Disability Amount field, enter the maximum amount allowed based on your spouse’s age and select Continue.
  5. Enter your spouse’s Taxable income and Other information according to the instructions and select Continue.

TurboTax then calculates the amount your spouse/partner can transfer based on the income and other info you entered and deducts this amount from your balance owing.

You’ll find the calculated amount as part of the Other amounts line (under Federal Non-Refundable Tax Credits) of your deductions summary.

 

To claim the Disability Amount transferred from your dependant

In online editions of TurboTax:

Before you can enter a disability transfer amount, you need to enter your dependant in your return.

Then,

  1. Using the navigation menu across the top of your screen, select Deductions > Additional Dependant Information.
  2. Complete the step Tell us about your dependants, confirming your dependant’s income is zero or entering their income amounts and then select Continue.
  3. Select Find in the upper right corner.
  4. Type Disability Amount Transfer, select it from the list and select Go.
  5. For the dependant whose disability amount you want to transfer, select Enter Credit Info.
  6. On the Claim Dependant Credits step, check Disability amount transfer and select Continue.
  7. Complete the Disability Transfer step and select Continue.

TurboTax then calculates the amount your dependant can transfer based on the income and other info you entered and deducts this amount from your balance owing.

You’ll find the calculated amount on your Dependant Credit Summary.

 

In CD/download editions of TurboTax

Before you can enter a disability transfer amount, you need to enter your dependant in your return.

Then,

  1. Select Find in the upper right corner.
  2. Type Claims for Dependants, select it from the list and select Go.
  3. On the Claims for Dependants step, answer Yes and select Go.
  4. Select the dependant whose disability amount you want to transfer and then select Enter Dependant Credits.
  5. On the Claim Dependant Credits step, check Disability amount transfer and select Continue.
  6. Complete the Disability Transfer step and select Continue.

TurboTax then calculates the amount your dependant can transfer based on the income and other info you entered and deducts this amount from your balance owing.

You’ll find the calculated amount on your Dependant Credit Summary.

 

 

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