People on Disability Get Back Taxed

JUNE 2ND, 2008 ONTARIO DISABILITY SUPPORT PROGRAM


Mr. Michael Prue: My question is for the Premier. Thousands of Ontarians have disabilities. Those disabilities include mental, physical and emotional illnesses that pose serious barriers to their ability to work and earn a living. Through no fault of their own, people with disabilities who also receive ODSP payments are condemned by this government to a life sentence of poverty. ODSP benefits leave single adults $6,000 below the after-tax Statistics Canada low-income cut-off number. When will this government stop forcing Ontarians with disabilities to live on sub-poverty level benefits?

Hon. Dalton McGuinty: To the Minister of Community and Social Services.

Hon. Madeleine Meilleur: It’s a very interesting question. This government has worked since we have been elected to improve the quality of life of those on ODSP. We have removed most of the barriers that were put in place by the previous government to prevent them to improve their quality of life. For instance, we consulted with them and some of them told us that they would go back to work if they were provided the medication by this government. There were also telling us that they would like to be able to retain more of what they are earning. So we worked on that. We have listened to them and we have amended our process to help them to improve their quality of life, and to help them if they want to go back to work.

Mr. Michael Prue: To the minister. And you continue to clawback everything they earn above $350 a month. Six ODSP recipients are with us here today—

The Speaker (Hon. Steve Peters): I would just remind the members of the use of some language in here. Thank you.

Mr. Michael Prue: Six ODSP recipients are here with us today: Ken MacLeod, Cheryl Duggan, Kyle Vose, Mike Yale, Chris Sartor and Sharon McPherson. They’re all here in the west gallery. They’re here to ask the Premier to listen to their stories and for the Premier to consider standing in their shoes. The meagre 2% ODSP increase that was in this budget amounts to 60 cents a day. What they want and what we all want is a commitment from this Premier that no Ontarian with a disability will be forced to live in poverty forever. Does this government believe that $2 a day is a reasonable amount for these people to have after rent and food expenses in their pocket?

Hon. Madeleine Meilleur: I will continue to let the people in the gallery know what this government has done since we came into power. We’ve listened to them. We have increased social assistance by—it’s going to be 9% this November. We know that they have a lot of challenge, and every time that we move forward to improve the quality of life, this party votes with their friends, who reduce their benefits by 22%. We’re listening to them. We want to improve their quality of life. We want to help them to return to work for those who are able to return to work. We are improving their quality of life so that they can keep their health benefits, they can keep their medication benefits and they can keep more of what they are earning and we will continue to work with them to improve their quality of life.

PARENTS AND PEOPLE WITH DISABILITIES GET BACK TAXES YOU HAVE ALREADY PAID
Parents and caregivers of people with a disability can claim past income tax credits for up to ten years. People with disabilities and their caregivers can have their income tax returns reassessed back to 1997. The 2004 federal budget restricted back filing after Dec. 31st 2004 to ten years. People with disabilities or their caregivers who have never claimed the Disability Tax Credit [DTC] should claim it now. Some claimant families have received refunds of $12,000. $17,000, $21,000, or more. Thousands of Canadian families, who care for a person with a disability, may be eligible to receive thousands of dollars in refunds from income tax they have already paid.

WHO CAN BENEFIT?

More than 3 million Canadians have a disability and depend on someone for support. A caregiver may be a senior caring for a disabled spouse or a common law partner, a child caring for a disabled parent, or grandchild, grandparent, brother, sister, uncle, aunt, niece or nephew. Any one of these caregivers are eligible to file or back file for this tax credit. However many of these people are unaware of the Disability Tax Credit’s existence? The tax credit is a non-refundable tax credit that reduces the amount of income tax payable and it may create a refund for past taxation years.

BENEFITS

If an individual or someone they care for is over age 18 and has a mental or physical disability that is severe and prolonged they could have claimed Disability Tax Credit on their income tax return. If at anytime the year they maintained a dwelling where the relative and their dependent lived, they may also be able to claim the Caregiver amount, and back file this to 1998. If the family has never claimed the Disability Tax Credit they may back file to 1997. Parents who care for a disabled child under age 18 may claim a reduced Disability Tax Credit. Families with low or modest incomes may be eligible to receive the Child Disability Benefit.

OTHER BENEFITS OF THE DTC

Qualifying for the DTC is the criteria to allow parents or relatives to establish a Registered Disability Savings Plan. It allows the individual or their caregiver to make claims for tax credits and deductions; such as education and tuition fees, attendant care, private nursing, aids to daily living, dental costs, prescription drugs, hearing aids, adapting a vehicle, travel expenses for medical treatment not locally available, therapy, group home fees, talking books, tutoring, renovations and many more.

GOVERNMENT ACTION

In 2003 the federal government initiated a committee to explore issues relating to the Disability Tax Credit for persons with disabilities. The committee’s recommendations are included in their final report which can be viewed on their web site at www.disabilitytax.ca. Or you can visit the Canada Revenue Agency web site at www.cra.gc.ca. If you have never claimed the Disability Tax Credit, DO IT NOW!!. Don’t delay do it today, before you lose $1,000. It’s never too late. John Dowson Ch lp.
Mr. Dowson is the Executive Director of LifeTRUST Planning an organization that is committed to serving the needs of families of people with a disability. To get back axes you already paid call 1 877-DTC-1986 or email dtc@life-trust.com Visit their web site at http://www.life-trust.com/ First of a DTC series

Here is a link to some info on various parties positions with respect to poverty.

Recent liberal strategy on poverty:
http://www.nugget.ca/ArticleDisplay.aspx?e=873647&auth=MARIA%20CALABRESE

Tell Premier Mcguinty your thoughts! http://www.premier.gov.on.ca/feedback/ http://www.incomesecurity.org/campaigns/documents/WorkingTable-1Oct.pdf

Click below to view upcoming 2007-8 changes to OW and ODSP recipients:

Please see the link below for impact of changes to OW and ODSP.

http://www.incomesecurity.org/documents/RateRestructuringandChildBenefits-5Oct07.pdf

Link to recent Welfare report 2006 http://www.ncwcnbes.net/.

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