One of your parents, your spouse – or you – may never have had a disability before, but in their senior years develops a serious physical or cognitive impairment. Depending on the condition’s severity, they may be eligible for the disability tax credit.

With this credit, the individual pays less tax each year as long as they remain eligible. That means requiring less income to cover the cost of living, so their Registered Retirement Income Fund (RRIF) mutual fund savings go further.

Eligibility is determined in one of two ways. The individual has a “severe and prolonged impairment” involving either walking, speaking, hearing, vision, dressing, feeding, eliminating, mental functions or life-sustaining therapy. Or they have “significant limitations” in two or more of these categories. For example, an individual may be eligible if they have significant hearing loss and need assistance getting dressed because of arthritis.

To apply to the Canada Revenue Agency (CRA) for the credit, you must submit the Disability Tax Credit Certificate, which includes a section that must be completed by a medical practitioner prior to submission.