Tax Tips: You’ve Got This!
It’s April 19th, how are those taxes coming along? If that sentence strikes terror in your heart, we’ve got you covered. Continue reading for some helpful suggestions on how to tackle doing your taxes without going off the rails.
A major struggle and source of anxiety for ADHD’ers is financial paperwork so it makes sense that neurodiverse folks feel extra anxious around tax time.
But this yearly personal administrative task can potentially yield some financial relief, depending on your situation. With living costs skyrocketing across the country, spending some time to organize your files and get ready to submit your taxes can yield big results.
People with ADHD pay what’s colloquially known as an ADHD tax for all the forgotten subscription sign ups, library late fees, and spoiled groceries. Not to mention the high cost of medications that often aren’t covered by Pharmacare or personal health insurance plans.
If you’re already paying more for so many other things, why not take some time to ensure you’re getting the benefits you’re entitled to?
In Canada, the Disability Tax Credit or DTC is designed to help offset the many costs of living with a disability. If you’re not on disability, that’s ok, you can still apply. Many working Canadians with varying degrees of challenges qualify for this benefit. Take some time and read through the criteria.
Don’t leave money on the table
It’s important to research what benefits you may be entitled to! Most tax credit programs aren’t widely advertised so we’ve created a resource page, just for you.
In order to apply for the Disability Tax Credit, you’ll need to work with a nurse practitioner or your family doctor to fill out the form. Depending on your health care team and access, this should be free of charge, but check with your provider. In BC, the Medical Services Plan covers this fee. Even if it isn’t covered, it can be applied as a deduction on your taxes next year.
Once you apply for the credit, it usually takes two to four weeks (longer around tax time, due to high volume) to be screened and approved. Once you receive the letter of approval, you can fill out your taxes.
But wait, there’s more! Once approved for the DTC, you can open up a Disability Retirement Savings Plan which is a fantastic way to set yourself up for future financial security. For those younger than 49-years-old, there are government grants that can help you grow your funds so make sure you ask about this important resource.
Help is available
We understand just thinking about taxes and all that mundane paperwork is often the overwhelming part! But there are many free tax software programs available online if you have a fairly straightforward tax return.
There are also free tax clinics that many non-profit organizations, including MOSAIC, that help folks new to Canada navigate the complexities of the tax system.
In Vancouver for example, many neighbourhood houses host tax clinics. For a full directory of local tax clinics, visit this page on Canada.ca.
If you are on disability, there are advocates that can assist with more complex tax returns through Disability Alliance BC.
For those with very simple tax returns, Wealthsimple Tax has a no-nonsense online filing system that links directly to your CRA account.
There are expenses that you can claim but may not be aware of, including the cost of some medications, even medical assessments such as those for ADHD. A helpful guide can be found here.
At the Adult ADHD Centre, we understand how hard it is to start a daunting task such as your taxes, but as with many other projects, getting started can break the spell of analysis paralysis and/or perfectionism.
Break it down
One way to minimize overwhelm is to break it down into smaller chunks. For example, taking 20 minutes to read up on free tax clinics, then take a 5-minute break, then return to signing up for a CRA online account if you don’t yet have one. Once you get rolling, you’ll be surprised how quickly it all comes together.
Remember, the urgency and stress you’re experiencing from procrastinating on your tax return may not be how the government sees it. In Canada, even if you overlook an important item on your return, you can refile through the CRA my account online portal.
Wherever you are on your journey, it’s important to give your attention to this yearly paperwork. You may even be entitled to a tax credit or refund!