Tax credit denial feared
People with Type 1 diabetes must reapply for Disability Tax Credit; 80% of claims are being denied, group estimates
A Millbrook resident with Type 1 diabetes fears she could soon be denied the Disability Tax Credit she’s been getting for a decade after 80 per cent of applicants were recently deemed ineligible.
Linda Sage, 49, was diagnosed with Type 1 diabetes when she was four.
For the last 10 years, she received the federal government’s Disability Tax Credit (DTC). It’s available to Canadians living with Type 1 diabetes if they spend 14 hours a week managing their disease.
To qualify, Type 1 diabetics have to get their doctor to sign off on paperwork verifying the time they spend caring for themselves.
Sage, a broker of record with DNS Real Estate, spends about 18 hours a week managing her disease. But in all honestly, she said it’s a 24/7 job.
Last year, Sage learned she’d have to reapply for the DTC, which struck her as odd. Type 1 is incurable.
“Once you’re a Type 1 diabetic, it doesn’t just go away. That’s like telling an amputee that their leg is going to grow back,” she said.
Although Sage was ultimately approved, it’s only for five years. She’ll have to reapply in 2021.
Sage considers herself one to be of the lucky ones, though.
According to the Diabetes Canada, recent changes to Canada Revenue Agency’s practice has led to 80 per cent of Type 1 diabetic’s DTC applications being denied. A year ago, 80 per cent were being approved.
As a member of DTC support group on Facebook, Sage is witnessing many fellow members with Type 1 being denied the credit, after previously qualifying.
Members are getting letters from CRA saying they don’t meet the “eligible criteria” to receive the DTC, Sage said.
Sage finds that confusing, though, because all applications have to backed by doctors.
“In my eyes, they’re more or less calling the doctor a liar that we don’t spend enough time on lifesustaining therapy.”
The Income Tax Act defines lifesustaining therapy as an act that happens three times a week for a total of at least 14 hours a week to sustain a vital function.
Although not all Type 1 diabetics monitor themselves in the same way, Sage said 14 hours of care, at minimum, is needed to maintain good health.
But she’s not sure the government recognizes what goes into managing Type 1.
“That’s the big thing – I don’t think (the government) understands the disease.”
To help monitor her highs and lows, Sage uses a monitoring system that’s not covered by OHIP or her benefits.
Sage gets about $1,500 a year for the DTC, but it varies from person to person.
“That Disability Tax Credit helps compensate the amount of money I’m out for the extras that I do to stay healthy.”
If she’s not diligent about her Type 1, Sage could end up in the hospital.
Twenty years ago, she was hospitalized for not recognizing a low and spent a week in a coma.
The equipment and tools she has today help her stay out of hospital, leaving those beds for others in need.
Type 1 diabetes is not preventable and can’t be cured through diet and exercise. It’s an autoimmune disease that doesn’t allow the pancreas to produce insulin.
Sage is flabbergasted that she’ll have to apply for the DTC again in five years and isn’t sure she’ll get approved.
“I’m worried I’m not going to get it again.”
She’s also awestruck that the government is denying so many Type 1 diabetics the financial support they need.
“I think the government needs to start giving Type 1 diabetes more of a break.”
Concerned with the recent plummet in approvals for DTC for Type 1 diabetics, Diabetes Canada is encouraging those affected to send a letter to their MP. The organization has developed a template for people to personalize and send out. It can be found on the Diabetes Canada website at www.diabetes.ca