1. Read the notice of determination first
The notice should explain why the CRA denied the application. The CRA looks at how your condition affects your daily life, not just your diagnosis. One law firm says many denied applicants were turned down because of how the application was completed, not because they don't meet the criteria. That's one firm's view, but it's a good reason to have someone experienced compare the stated reason against what your Form T2201 actually said.
2. Watch the 90-day deadline
This is the most important date. The CRA's own guidance says you can file an income tax objection within 90 days of the date on your notice of determination. If you miss it, the CRA generally requires an extension application within one year after the objection deadline. If you're anywhere near the deadline, get help right away rather than waiting.
3. Your options
- Call the CRA. The CRA's own letter on denials suggests calling to ask questions or discuss your application (1-800-959-8281). This can clarify what was missing.
- Request a review or submit more medical information. You can request a review, submit new information, or file a formal objection. A review request is not a formal objection and doesn't stop the 90-day clock.
- File a formal objection. You can use the "Register my formal dispute" option in your CRA account, an authorized representative, or the paper process. Filing a Notice of Objection costs nothing, though professional help does.
- Reapply with a stronger application. Depending on the reason for denial, a new T2201 with more detail may be faster than a dispute.
4. Why an advocate or lawyer is worth considering
You're allowed to handle this yourself, but there are good reasons not to go it alone:
- The decision turns on wording and evidence. Small differences in how a practitioner describes your limitations can change the outcome, and an experienced helper knows what the CRA looks for.
- Deadlines are strict. Missing the 90-day window creates extra hurdles.
- The process can escalate. If the CRA confirms the original decision, you can appeal to the Tax Court of Canada within 90 days of the decision on your objection. That stage is much easier with legal representation. Appeals aren't guaranteed to succeed either. One accountant's write-up describes a three-year DTC claim that was denied on appeal to the Tax Court, and notes that the Income Tax Act gives little specific direction on many DTC terms.
- The stakes can be large. If you're approved and the condition began years ago, one legal guide says you can request adjustments for up to 10 previous tax years. Approval can also open the door to programs like the registered disability savings plan and the Canada workers benefit disability supplement.
5. Who can help
- Lawyers or accountants experienced with DTC objections. One legal directory estimates $500 to $2,000 to manage an objection, but fees vary, so get quotes.
- Disability advocates and advocacy organizations. Many provinces have groups that help people with disability benefit applications and appeals, sometimes free or low-cost.
- Legal clinics and lawyer referral services. If cost is a concern, community legal clinics or your provincial law society's referral service can point you in the right direction.
Ask about fees before you sign anything. Some DTC services charge a percentage of any refund you receive. That isn't automatically a bad deal, but understand exactly what you'd owe, what's included, and whether you pay if the claim fails.
6. Strengthen your evidence either way
Ask your practitioner to describe concretely how your condition limits you in daily activities, how often, and for how long. Vague or generic wording is a common weak point, and whoever helps you will likely start by tightening this up.
Other things to know
A DTC decision doesn't automatically decide your entitlement to private disability insurance or CPP Disability. Those are separate processes, and they may need separate help.
This is general information, not legal or tax advice. Reading it does not create a lawyer-client relationship. Your deadlines depend on the dates in your own notice. If you're close to the 90-day mark, get advice or file your objection now.
This article provides general information about the law in Alberta and is not legal advice. Every situation is different. Reading this article does not create a lawyer-client relationship. For advice about your circumstances, contact Andrew Green Law.