CRA Confirms Up to $8986 Refund in 2025, Check Who Qualifies, How to Apply and What You Could Get Back

Big news for 2025—if you’re living with a disability or supporting a loved one who is, you could receive up to \$8,986 back in tax refunds through the Disability Tax Credit (DTC).

This CRA-approved tax measure is designed to reduce the financial stress faced by Canadians living with severe, long-term impairments. And the relief doesn’t stop there—if you don’t owe much tax personally, a family member supporting you may be able to claim the credit on your behalf, ensuring the benefit isn’t lost.

Here’s a comprehensive breakdown of what the Disability Tax Credit is, who qualifies, how to apply, and why it matters more than ever in 2025.

Eligibility: Who Can Qualify for the DTC

Not everyone with a medical condition automatically qualifies. The CRA requires specific conditions to be met:

• A medical professional must certify that you have a severe and prolonged impairment (mental or physical).
• The impairment must restrict your ability to perform basic daily activities such as walking, dressing, feeding, hearing, or speaking.
• The condition must last for at least 12 consecutive months.
• You must complete and submit Form T2201, signed and validated by a qualified doctor or health practitioner.

If the person with the disability has little or no taxable income, a supporting family member—such as a spouse, parent, or child—can claim the credit and receive the refund instead.

Refunds: How Much You Could Receive in 2025

The Disability Tax Credit provides savings at both the federal and provincial levels. While the combined credit value is over \$14,000, the actual refund is typically up to \$8,986.

Here’s a simplified breakdown:

Component	Federal Amount	Provincial Average	Total Value
Base Disability Tax Credit	\$9,428	\$5,135	\$14,563
Refundable Amount (actual)	N/A	N/A	Up to \$8,986

Your exact refund will depend on your income, tax liability, and provincial supplements. Some families may also qualify for retroactive refunds if the condition has lasted for years but was never claimed before.

Application: Step-by-Step Process

Applying for the Disability Tax Credit is more straightforward than it appears. Here’s what to do:

1. Download Form T2201 from the CRA’s website.
2. Have your doctor or licensed medical practitioner complete and certify the form.
3. Submit the form through CRA My Account (online) or by mailing it to the address provided.
4. Wait for the Notice of Determination. The CRA will confirm whether you’re approved or request further details.
5. If approved, you may also be able to claim the DTC retroactively for up to 10 years, potentially leading to much larger refunds.

Benefits Beyond the Refund

Being approved for the DTC opens the door to several other programs, making it much more than a one-time tax break:

• Registered Disability Savings Plan (RDSP) – long-term savings with government contributions.
• Canada Workers Benefit – Disability Supplement – additional income support for working Canadians with disabilities.
• Provincial disability programs – including help with housing, utilities, or medication costs.

The tax refund itself can also be put toward essential needs such as mobility aids, medical travel, home modifications, or therapies.

Why the DTC Is Especially Important in 2025

With inflation driving up the cost of living and medical expenses climbing nationwide, the DTC is more relevant than ever. For families coping with long-term disabilities, this credit can mean the difference between constant financial strain and a measure of security.

The CRA’s confirmation of nearly \$9,000 in refunds makes it clear that Canadians should carefully check their eligibility. Even if you’ve never applied before, it’s worth speaking to your doctor and exploring whether you or your loved one qualify.

FAQs

Q1. How much is the Disability Tax Credit worth in 2025?
The credit provides a refund of up to \$8,986, depending on your income and provincial supplements.

Q2. Who can apply for the DTC?
Canadians with a severe and prolonged mental or physical impairment lasting at least 12 months, certified by a medical professional.

Q3. Can a family member claim the credit?
Yes. If the disabled person has little or no taxable income, a supporting relative can claim the credit and receive the refund.

Q4. How do I apply for the DTC?
Complete Form T2201, have it signed by a qualified medical practitioner, and submit it online through CRA My Account or by mail.

Q5. Can I claim the Disability Tax Credit for past years?
Yes. If eligible, you can apply retroactively for up to 10 years, which could significantly increase your refund.