Top Reasons Why the CRA Denies Disability Tax Credit (DTC) Claims

Understanding why the CRA denies DTC applications is the first step to a successful appeal. Most denials are not because you don't qualify — they happen because of how the application was prepared.

Reason 1: Insufficient Functional Language on the T2201

The most common reason for denial. The T2201 described a diagnosis but did not explain how the condition restricts daily activities using CRA's specific functional criteria. CRA evaluates function, not diagnosis.

Reason 2: Practitioner Unfamiliarity with CRA Criteria

Many medical practitioners are not trained in CRA's eligibility language. A clinically accurate form can still be insufficient for CRA purposes if it doesn't address the specific functional thresholds.

Reason 3: Missing Duration or Frequency Details

CRA requires that restrictions be prolonged (12+ months) and present all or substantially all of the time (90%+). Omitting these details leads to denial even when the condition is genuinely severe.

Reason 4: Cumulative Effects Not Documented

When multiple conditions combine to restrict functioning, each must be documented separately with their cumulative impact clearly stated. Failing to document the combined effect is a common oversight.

What to Do After a Denial

A denial is not final. You can file a Notice of Objection within 90 days, or submit a new application at any time. My Benefits Canada reviews denied applications at no cost.