If your Disability Tax Credit (DTC) application is denied, you may be able to request a review, submit additional medical evidence or file a formal objection. Start by reading the CRA’s reasons and checking the date on your notice of determination.
A denial can be discouraging, especially when your condition already makes daily life difficult. It does not necessarily end your options. The next step is to identify what the CRA found missing or why it decided the eligibility requirements were not met.
Check Your Deadline First. The CRA’s DTC guidance states that you have 90 days from the date of the notice of determination to file an objection. Do not wait for an informal review to finish or assume that reapplying extends your objection deadline.
For a broader explanation of the program, see our Disability Tax Credit guide.
On This Page:
- 1. What to Do First
- 2. Why Applications Are Denied
- 3. Review or Formal Objection?
- 4. Medical Evidence to Discuss
- 5. Should You Reapply?
- 6. Frequently Asked Questions
- 7. Get Help With Your Next Steps
What Should You Do First After a DTC Denial?
Put these documents together before deciding how to respond:
- Your notice of determination: Highlight the date, reasons for denial and any years affected.
- Your completed T2201: Review what was actually submitted, including the medical section.
- Other CRA correspondence: Include requests for information and any responses.
- Relevant medical records: Identify reports that may clarify the specific issue raised.
Make a short list of the points you disagree with. For each one, note whether the concern is a factual error, missing information or a disagreement about how the DTC criteria apply.
Check What the Letter Actually Says. A request for more information or a returned, incomplete form is different from a decision denying eligibility. Respond to the instructions in the letter rather than assuming every problem requires a new application.
Why Might the CRA Deny a Disability Tax Credit Application?
The CRA assesses whether the information establishes qualifying limitations. Possible issues include:
- Severity: The evidence describes difficulty but does not establish the required level of restriction.
- Frequency: The limitation is not shown to exist all or almost all of the time where that test applies.
- Duration: The impairment is not shown to have lasted, or be expected to last, at least 12 continuous months.
- Daily functioning: The application focuses on diagnosis or inability to work without explaining the relevant everyday limitations.
- Combined limitations: The evidence does not explain how restrictions in multiple eligible categories interact.
- Therapy requirements: The information does not establish the applicable life-sustaining therapy criteria.
Sometimes additional information can clarify the application. In other cases, the person’s limitations do not meet the DTC test. More detailed wording alone cannot make someone eligible.
Review our DTC conditions and eligibility guide alongside the reasons in your notice.
Requesting a Review vs. Filing a Formal Objection
Request a Review or Provide New Medical Information
A review lets you ask the CRA to reconsider using relevant information it has not already received. This could include an updated report or a letter from a practitioner familiar with your limitations.
The CRA currently directs applicants to mail review requests and documents to the tax centre that processed the application. Follow its DTC decision and review instructions, and keep copies.
File a Formal Objection
An objection formally disputes the determination. You do not have to wait for an informal review to be refused before objecting.
You can use the CRA account’s “Register my formal dispute” option, an authorized representative, or the CRA’s paper objection process. Explain the decision you dispute, the facts and why you disagree. See the CRA’s objection instructions.
A Review Request Is Not a Formal Objection. If your deadline is approaching, get advice promptly about preserving your objection rights while any review is underway.
What if You Missed the Deadline?
An extension may be available if the legal requirements are met. The CRA generally requires an extension application within one year after the objection deadline. Approval is not automatic, so seek advice promptly.
What Medical Evidence Could Help Address the Denial?
Ask your practitioner to review the denial reasons with you. Focus on the disputed issue rather than collecting more paperwork without a clear purpose.
- Specific activities: Which tasks are affected, and what happens when you attempt them?
- Time and assistance: How long do they take, and what help is required?
- Frequency: How often are the limitations present, including on better days?
- Treatment: What restrictions remain despite appropriate medication, therapy or devices?
- History: What records support when the qualifying limitations began?
- Combined effects: Do limitations in different categories need to be considered together?
Example: If the concern is how long dressing takes, another letter simply confirming arthritis may not address it. Discuss the fasteners you cannot manage, help you need, time involved and how consistently these problems occur. Describe your real experience without exaggeration.
For more specific guidance, see our DTC pages for arthritis, mental health conditions, ADHD and hearing loss.
Should You Reapply for the Disability Tax Credit?
A new application may be appropriate when your circumstances have changed or you are seeking eligibility for a different period. If you disagree with the original decision, first consider whether a review or objection is the appropriate route.
Submitting the same information again may leave the original concern unresolved. Identify what is different and whether it addresses the reason for denial.
If you proceed with a new application, follow our DTC application guide. A new application does not replace a timely objection to the earlier determination.
DTC Denial: Frequently Asked Questions
Can I Dispute the Years Approved?
Yes. You can disagree with the eligibility period even if the CRA approved some years. Identify the disputed years and the evidence supporting limitations during that period.
Can I Receive Back Pay if the Decision Is Changed?
Potentially. Approval for past years may allow tax-return adjustments going back up to 10 years. A refund depends on the approved period, tax paid and any eligible transfer to a supporting family member. See our DTC refunds guide.
Does a DTC Denial Mean I Cannot Receive LTD or CPP Disability?
No. These programs use different eligibility tests. A DTC decision does not automatically decide entitlement to private disability insurance or CPP Disability.
What Happens if My Objection Is Unsuccessful?
You may have a further right of appeal to the Tax Court of Canada. This is a separate process with its own deadlines. Review the decision and obtain advice about the next step promptly.
Does My Doctor’s Support Guarantee Approval?
No. A practitioner’s evidence is important, but the CRA must be satisfied that the applicable eligibility requirements are met. Ask whether the evidence addresses the specific reason for denial.
Was your LTD insurance denied or cut off? Samfiru Tumarkin LLP’s disability lawyers help people challenge private disability insurance decisions across Canada, excluding Quebec. That is a separate process from disputing a CRA tax-credit decision.