Why Was My Disability Tax Credit Denied? The Top Reasons from the CRA
A denial from the CRA is often not the final word. Understanding why the CRA denies claims is the first step to a successful appeal. Most denials are not about your diagnosis — they are about how your daily life is documented.
Top 5 Reasons for DTC Application Denial
1. Insufficient Detail About Functional Limitations
This is the single most common reason for denial. The CRA needs to understand the specific ways your condition restricts your ability to perform basic functions of daily living — walking, dressing, mental functions, etc.
2. Focusing on the Diagnosis, Not the Effects
Having a diagnosis, even a severe one, does not automatically qualify you for the DTC. The application must focus on the effects of the condition on your daily life — not the diagnosis itself.
3. Not Meeting the "All or Substantially All" Criteria
For most categories, the CRA requires that your limitations are present "all or substantially all of the time" (at least 90% of the time). If your doctor's report suggests symptoms are intermittent or only occur 50% of the time, the application will be denied.
4. Cumulative Effects Not Properly Documented
Many people qualify because of the combined effect of multiple limitations. If the application doesn't clearly explain how multiple conditions combine to create a significant overall impact, it will be denied.
5. Medical Practitioner's Report is Vague or Contradictory
If your doctor fills out the form with generic language, or if their notes contradict the information you provided, the CRA will almost always deny the claim. The medical report must be detailed, specific, and consistent.