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Disability tax credit

Disability tax credit

Individuals suffering from a severe and prolonged mental or physical impairment can claim a federal disability amount of $8,001 for 2016. If the person with a disability is a child under 18, there’s an additional supplement of $4,667 for 2016, for a total disability amount of $12,668. To qualify, a doctor must certify on Form T2201 that there exists a severe and prolonged impairment that “markedly restricts” the individual’s daily living activities. Read more about Disability tax credit

Tax free income ?

Tax free income ?

Almost all types of income are subject to income tax. However, there are some exceptions. Lottery winnings in Canada and gains from casual gambling are not taxable.Proceeds from damage awards are generally tax-free and, under certain circumstances, income earned on damage awards for taxpayers under 21 years of age is also exempt until the taxpayer turns 21.Various defined payments to war veterans are also exempt. Read more about Tax free income ?