Registered Disability Savings Plan for Type 1 Diabetes

Qualifying for an RDSP with type 1 diabetes

If you have type 1 diabetes, or your child does, you or your child may qualify for both the Disability Tax Credit (DTC) and a Registered Disability Savings Plan (RDSP). We’ll explain:

Why isn’t common knowledge that type 1 diabetics can qualify for the DTC and open an RDSP.

What’s the DTC is and what’s required to qualify for it.

What an RDSP is and what’s required to open one.

Why don’t more people know about this?

Simply put, people think of type 1 diabetes as a medical condition but not as a disability. While it takes time and effort to manage type 1 diabetes, diabetics don’t generally suffer from physical or mental limitations due to being diabetic.

The good news is that now you know that you may qualify! Qualifying for the DTC and opening an RDSP are both great ways to plan for your or your child’s financial future.

What is the Disability Tax Credit?

What is the Disability Tax Credit?

What is the Disability Tax Credit (DTC)?

The DTC is a non-refundable tax credit that reduces the amount of taxes that someone with disabilities must pay. If claiming the credit for a child, this credit is applied to a parent’s tax bill.

To qualify for the DTC, a diabetic (or their caregiver) must claim they require what is referred to as “life-sustaining therapy.” Your doctor must sign off on a T2201 form that confirms that you spend an average of 14 hours per week managing your diabetes, OR that you spend that much time helping your child with their diabetes management.

You can include the following activities in the fourteen hours:

• Checking you or your child’s blood sugar levels.

 • Preparing and administering insulin.

• Changing infusion sets for insulin pumps.

• Keeping a log of blood sugar levels.

You cannot include activities such as attending medical appointments or shopping for medication in the 14 hours.

What is a Registered Disability Savings Plan (RDSP)?

You or your child must be approved for the DTC before you can open an RDSP. You must also have a valid SIN, be under the age of 60, and be a resident of Canada.

An RDSP is a registered savings plan designed to help qualified individuals save for their financial future. Depending on your family income, the federal government will deposit the following into your RDSP:

• Canada disability savings grant (matches your contributions up a defined maximum)

• Canada disability savings bond (no contribution required)

How do I get started?

Once you’re ready to open an RDSP, book a meeting with us! We’re here to help walk you through the process and answer any questions you may have.

What are RDSP Grants? How does Grant matching work?

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