Taxes and benefits for Indigenous peoples

Disability Tax Credit

Tax credits and deductions are available for persons with disabilities, their supporting family members, and their caregivers

Some of the disability credits and deductions include:

• Disability tax credit
  • A non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of income tax they may have to pay. An individual may claim the disability amount once they are eligible for the DTC. This amount includes a supplement for persons under 18 years of age at the end of the year.
• Medical expenses
  • You can claim medical expenses on your tax return.
• Disability supports deduction
  • You could deduct expenses for items that helped you with work, go to school, or do research where you received a grant.
• Child disability benefit
  • Find out if you are eligible for the tax-free monthly payments, these are in addition to the Canada child benefit
• Registered disability savings plan
  • Find out how the RDSP can help you save for the long term financial security of a person who is eligible for the Disability tax credit.

Marital status

Update your marital status including if you’re living in a common-law relationship. We’ll recalculate your payments to account for your new marital status and your new family net income.

Some changes based on marital status include:

• GST/HST credit
  • instead of each adult receiving a separate amount, the couple receives a single amount
• Canada child benefit
  • the benefit amount depends on the number of children in your care and the new family net income is used to calculate the benefit amount
• Child disability benefit
  • the new family net income is used to calculate the benefit amount
• Canada workers benefit
  • the new family net income is used to calculate the benefit amount

Children in your care

Update the number of children in your care if a child starts living with you, you start sharing custody of a child, or a child is no longer in your care.

Some changes based on the number of children in your care include:

• GST/HST credit
  • the benefit amount depends on the number of children in your care
• Canada child benefit
  • the benefit amount depends on the number of children in your care and the new family net income is used to calculate the benefit amount
• Child disability benefit
  • the new family net income is used to calculate the benefit amount

Address

Update your address if you change your primary residence, to make sure your benefit and credit payments don’t stop.

Uncashed cheques

There are many reasons people in Canada may have an uncashed cheque from the CRA, for example if you move and do not update your address. To see if you have an uncashed CRA cheque sign into or register for MyAccount.

For more information, go to uncashed cheques from the CRA.

Direct deposit banking details

Direct deposit is a fast, convenient, reliable, and secure way to get your CRA payments directly into your account at a financial institution in Canada. For more information and ways to enrol, go to direct deposit or contact your financial institution.

Your workplace

The COVID-19 pandemic may have caused changes to your workplace.

You may have been required to work off-reserve because of workplace restrictions. Find out if your income is still exempt despite changes to your situation.

CRA and COVID-19 - Indigenous income tax issues

If you live on a reserve and were required to work from home, your employment income could now be fully or partly exempt from tax under section 87.

Information on the tax exemption under section 87 of the Indian Act

You may also be eligible to claim home office expenses if you are working from home.

It’s important to read these communications carefully. We might ask you to provide more information or documentation to confirm that you’re eligible for a benefit or credit. For example, we may ask you to confirm that you are the primary caregiver for children in your care.

Your benefits may stop if you don’t reply and provide all the information requested. If you do not have the documents or need some extra time to gather them, contact the CRA. Be sure to consider:

• what benefit the letter or message is about (for example, the CCB)?
• what eligibility criteria the letter or message is asking you to validate (for example, proof of dependents)
• what information or documents the message or letter says you can send
• how the message or letter says you should send this information or documents (mail, fax or online)

Documents you can be use for validation

Submitting your documents

For more information

• What to do if the CRA reviews your benefits
• Benefits being reviewed? Here’s what you need to know

Find out how to recognize messages from the CRA: Scam prevention and the CRA.