Why Is It So Hard to Get the Disability Tax Credit for Mental Health?

Applying for the Disability Tax Credit (DTC) in Canada can be challenging—especially if you live with a mental health condition. While the DTC is designed to support people with severe and prolonged impairments, the application process is often inaccessible, confusing, and riddled with systemic bias against those whose disabilities aren’t always visible.

This post breaks down why it's so difficult to get approved for the DTC with a mental health-related disability, what the process entails, and how to advocate for yourself or others during the application.

What Is the Disability Tax Credit?

The DTC is a non-refundable tax credit through the Canada Revenue Agency (CRA), intended to help reduce the tax burden for individuals living with serious disabilities—or for a family member who supports them. If approved, it can mean between $1,300–$2,500 in tax savings per year, and it opens the door to other financial supports like the Registered Disability Savings Plan (RDSP), which includes government contributions.

Importantly, the DTC can be applied retroactively for up to 10 years, which could lead to a significant refund if you’ve been eligible in the past.

Mental Health Conditions That Can Qualify

Yes—mental health disabilities are eligible under the DTC, and recognized conditions include:

• Depression

• Bipolar disorder

• PTSD

• Schizophrenia

• Anxiety disorders

• OCD

• ADHD

• Autism Spectrum Disorder

• Dementia and cognitive impairments

But simply having a diagnosis is not enough. The CRA is not evaluating your diagnosis—they're evaluating your functional impairment in specific areas of daily life.

Doctors filling out paperwork

Why It's Especially Hard for Mental Health Disabilities

The DTC process was not built with mental health in mind. Many people face rejections because their conditions are "not severe enough," "too intermittent," or because the language used in their application doesn’t align with what the CRA wants to hear.

Here’s why mental health applicants often struggle:

1. Fluctuating Symptoms Mental health conditions aren’t static. A person may function relatively well one day and be completely debilitated the next. The CRA expects impairments to be present at least 90% of the time, which doesn’t account for the reality of how most people experience mental illness.

2. Language Matters—A Lot The CRA evaluates impairments in eight areas of “mental functioning,” including memory, judgment, adaptive functioning, emotional regulation, and more. If your application doesn’t clearly show how your condition severely affects you in these areas, it's likely to be denied—even if you're struggling.

3. Doctors Don’t Always Know How to Help Part B of the form must be filled out by a healthcare provider—but many doctors aren’t familiar with the specific language requirements of the DTC.

4. The Burden Is on You to Prove It Mental illness is still widely misunderstood. You might be asked to “prove” your suffering in ways that feel invasive or dehumanizing, and applications are often denied for being too vague, too honest, or not dramatic enough.

How to Strengthen Your Application

Despite the barriers, it is possible to get approved—especially if you approach the form strategically.

1. Fill Out the Form Based on Your Worst Days

Don’t generalize or downplay. Describe your symptoms and limitations as they are at their most severe. That’s what the CRA is evaluating.

2. Ask to Help Fill Out Part B

You know your day-to-day better than your doctor does. Ask if you can walk through the answers with your healthcare provider. This ensures more accurate and impactful responses.

3. Be Clear About Support Needs

If you receive help from a partner, parent, or support worker—even if it's informal—state that clearly. Explain what they do (e.g., reminding you to eat or take meds, helping with hygiene or decision-making) and why their help is necessary. Even if the support feels “normal” to you, it may be considered significant by the CRA.

Final Thoughts

Getting the Disability Tax Credit for a mental health condition can be exhausting—but it’s not your fault. The system isn’t built to accommodate invisible, fluctuating, or nuanced disabilities. If you’ve been rejected before, know that you’re not alone—and you can always appeal or reapply with a stronger application.

If you're considering applying, take your time, advocate for yourself, and don’t be afraid to ask for help. You deserve support—financial and otherwise—for what you live with every day.

For more support, book a System Navigation session.

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Disclaimer: This blog is for informational purposes only and does not constitute legal or financial advice. Please consult with a disability advocate, tax professional, or legal representative for individualized guidance.