COLUMN: Ask the Money Lady – Disability benefits

Dear Money Lady: My nine-year-old daughter has MS. I read your newspaper column about government programs. It’s not exactly easy to make sense of all the information out there. What are the first steps I should take? Thanks, Marlene

Great to hear you’re looking to take advantage of what’s available to you and your family, Marlene! The most important first step is getting the Disability Tax Credit (DTC), which helps those people living with disabilities and their families reduce the income tax they pay each year. It’s also the first step to becoming eligible for important supports like the Registered Disability Savings Account (RDSP) that offers government contributions of up to $90,000.

To be eligible for the DTC, your daughter’s medical practitioner must certify that her disability causes a severe and prolonged impairment in one of the following categories, or she has significant limitations in two or more categories, or she receives therapy to support a vital function. Categories include walking, mental function, dressing, feeding, elimination, hearing, speaking, vision or a life-sustaining ongoing therapy.

Today, over 21 million Canadians live with a medical condition that may potentially qualify for the disability tax credit, but most are unaware of this benefit. In fact, according to a 2025 survey shared with me by Concentra Trust, 23 percent of caregivers incorrectly believed that DTC eligibility was based on having a specific diagnosis they didn’t meet the criteria for. The reality is that the DTC eligibility doesn’t require a specific diagnosis but rather considers other restrictions or limitation factors that are certified by a medical practitioner.

With the DTC, you can then open the Registered Disability Saving Plan (RDSP), which I wrote about in my previous column. To recap: the RDSP is a tax-deferred savings plan for Canadians and their families living with disabilities that can provide up to $90,000 in government-contribution grants and bonds. Of this, $20,000 in bonds does not require any contribution for beneficiaries from low-to-modest income households – which means it’s worth opening even if you have nothing to contribute.

While RDSPs are offered by many financial institutions, I always recommend going with a team that knows RDSPs, which are often not as well-understood as other registered plans like the RRSP or TFSA. Concentra Trust, a reputed provider of RDSPs, has an experienced, knowledgeable team who can help you with the ins and outs of opening an RDSP. If you are a member of a credit union, that’s also a great way to explore the RDSP given their community involvement and understanding of their members.

Other benefits worth exploring include the Canada Disability Benefit and the Canada Pension Plan Disability Benefit (CPP-D). For any readers caring for a child with a severe disability, look into the Child Disability Benefit (CDB) if you haven’t already. It’s also a good idea to apply for any provincial benefits such as the Ontario Disability Support Program (ODSP), the Alberta Assured Income for the Severely Handicapped (AISH) or the British Columbia Persons with Disabilities benefit (PWD). I hope more Canadians, like you, explore and take advantage of these benefits if they are dealing with a disability.

Christine Ibbotson is a Canadian finance writer, radio host & YouTuber. For more advice check out her YouTube channel: ASK THE MONEY LADY – Your Canadian Finance Coach.