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Disability Tax Credit and Its Impact on Accessing the Canada Disability Benefit

Disability Tax Credit and Its Impact on Accessing the Canada Disability Benefit

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When the Canada Disability Benefit (CDB) launched in 2025, it was celebrated as a landmark program aimed at lifting people with disabilities out of poverty. But there’s an important detail many Canadians are only discovering now: to access the CDB, you first have to qualify for the Disability Tax Credit (DTC).

For many, this extra requirement can feel like a hidden hurdle—and it’s one that can block access to much-needed financial support.

What Is the Disability Tax Credit (DTC)?

The DTC is a non-refundable tax credit meant to reduce the income tax burden for people with disabilities and their caregivers. To qualify, an applicant must submit a form signed by a medical professional showing they have a severe and prolonged impairment in one or more areas of daily living.

Approval gives access not only to the tax credit itself, but also to related programs such as the Registered Disability Savings Plan (RDSP) and now, the Canada Disability Benefit (CDB).

Why the DTC Requirement Matters

By linking the new Canada Disability Benefit to DTC approval, the government effectively created an extra layer of eligibility screening.

  • Barrier to entry: If your DTC application is denied, you cannot receive the CDB—even if you clearly meet the CDB’s intended purpose.

  • Unfair exclusions: People with episodic disabilities (such as multiple sclerosis or certain mental health conditions) often find it harder to demonstrate eligibility under the DTC’s strict criteria.

  • Complex paperwork: Many Canadians struggle with the forms, medical documentation, and technical language required for a successful DTC application.

Advocacy groups have raised concerns that this gatekeeping may exclude many of the very people the CDB was designed to help.

Common Reasons DTC Applications Are Denied

  1. Insufficient detail from doctors: Applications often fail because medical professionals don’t provide enough specifics about the impairment’s daily impact.

  2. Focus on diagnosis instead of function: The DTC doesn’t assess your condition name—it looks at how it affects your ability to walk, feed, dress, or manage mental functions.

  3. Episodic symptoms: If your condition is not constant, but still severely limiting, it can be harder to explain within the DTC framework.

How to Improve Your Chances of Approval

If you’re applying for the DTC to access the Canada Disability Benefit, here are some practical steps:

  • Work closely with your medical provider. Provide them with detailed examples of daily challenges so they can complete the form accurately.

  • Focus on function, not just diagnosis. Describe how impairments limit everyday activities, even if they fluctuate.

  • Include additional documentation. Attach supporting medical notes, test results, or specialist letters when possible.

  • Be prepared to appeal. If your first application is denied, you can request a reconsideration and, if needed, take the matter to the Tax Court of Canada.

Why Legal Support Can Help

Many people who genuinely qualify for disability supports are denied at the DTC stage simply because their application was incomplete or poorly framed. Since the Canada Disability Benefit depends on DTC approval, getting this step right is critical.

At Hilborn & Konduros, we regularly help clients appeal denials and secure the benefits they deserve. Whether it’s guiding you through the paperwork or representing you in an appeal, legal support can make the difference between receiving life-changing benefits or being left out.

How the New Canada Disability Benefit Fits Your Situation

How the New Canada Disability Benefit Fits Your Situation

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For people living with disabilities, government supports can feel complicated and fragmented. Between provincial programs like the Ontario Disability Support Program (ODSP), federal benefits like the Canada Pension Plan Disability (CPP-D), and now the newly introduced Canada Disability Benefit (CDB), it’s not always clear how everything fits together.

This post breaks down what the new Canada Disability Benefit means, how it interacts with existing supports, and what steps Ontarians should take to ensure they’re not missing out.

What Is the Canada Disability Benefit (CDB)?

The Canada Disability Benefit Act was passed in 2023, with applications officially opening in June 2025. The benefit aims to provide direct financial support to low-income Canadians with disabilities, reducing poverty and improving quality of life.

Some key points:

  • Eligibility: You must qualify for the Disability Tax Credit (DTC) to apply for the CDB.

  • Administration: Applications are handled by Service Canada.

  • Payments: The first round of payments began in July 2025. The exact monthly amount varies depending on income and other benefits received, but the intent is to “top up” incomes for those living below the poverty line.

How Does the CDB Work with ODSP?

One of the biggest concerns for Ontarians is whether new benefits will reduce ODSP payments. With the CDB, the government made a key decision:

  • CDB payments are fully exempt from income calculations under ODSP.

That means if you are already receiving ODSP, the new Canada Disability Benefit will not cause your provincial benefit to be reduced. Instead, it acts as an additional layer of financial support.

This is important because in the past, some federal or third-party payments were clawed back from ODSP, reducing their usefulness. The CDB is designed differently to ensure it actually improves financial security.

Step-by-Step: How to Apply for the CDB

  1. Confirm Eligibility for the DTC

    • If you don’t already have the Disability Tax Credit, you’ll need to apply with medical certification from a health professional. Without the DTC, you cannot qualify for the CDB.

  2. Apply through Service Canada

    • Applications are available online and in paper form. You’ll need your Social Insurance Number and banking details for direct deposit.

  3. Provide Income Information

    • The CDB is income-tested. You’ll need to provide consent for the CRA to share your tax information.

  4. Track Your Application

    • Processing times may vary. Keep a copy of your submission and check your Service Canada account for updates.

  5. Appeal if Needed

    • If your application is denied, you have the right to request a reconsideration and appeal. This is often where legal representation becomes essential.

How the CDB Fits with Other Supports

  • ODSP: As noted, fully exempt.

  • CPP Disability: If you qualify for CPP-D, you can still receive the CDB. The benefit is meant to supplement—not replace—existing supports.

  • Employment Income: Having some earned income does not automatically disqualify you. The CDB is designed to lift people above the poverty line, so it may taper off as income increases.

Why Legal Guidance Can Help

While the CDB is a welcome addition, navigating the system can be stressful. Many people face barriers getting approved for the Disability Tax Credit or run into challenges with Service Canada paperwork and appeals.

At Hilborn & Konduros, we have extensive experience helping Ontarians secure the disability benefits they deserve—whether through insurance claims, CPP-D appeals, or now the new Canada Disability Benefit. If you’ve been denied or are unsure how these programs interact, speaking with a lawyer can help you protect your rights and maximize the support available.

How Disability Benefits Are Taxed in Canada: A Clear Guide for Beneficiaries

How Disability Benefits Are Taxed in Canada – A Clear Guide for Beneficiaries

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One of the most common—and confusing—questions we hear from clients is: “Will my disability benefits be taxed?”

The answer depends on what type of benefits you receive and how those benefits are funded. Some are taxable, some are not, and understanding the difference can help you avoid surprises and plan ahead.

This post explains how disability benefits are taxed in Canada, with a focus on short-term disability (STD), long-term disability (LTD), and CPP Disability (CPP-D) benefits.

Short-Term and Long-Term Disability Benefits

Many Canadians receive STD or LTD benefits through their workplace or private insurance. Whether these benefits are taxable comes down to one key factor: who paid the premiums, and how.

  • Employer-paid premiums (pre-tax): If your employer paid the insurance premiums—and deducted them before taxes—your benefits are generally taxable income.

  • Employee-paid premiums (after-tax): If you paid the premiums yourself using after-tax dollars, the benefits you receive are usually tax-free.

  • Mixed contributions: If both you and your employer contributed, then a portion of your benefits may be taxable.

Example:

  • If your employer pays 100% of the premiums, you may need to pay income tax on every LTD payment you receive.

  • If you pay all the premiums yourself, your LTD income is typically non-taxable.

Canada Pension Plan Disability (CPP-D)

CPP Disability benefits are considered taxable income. Each year, Service Canada issues a T4A(P) slip showing the total benefits you received, which must be reported on your tax return.

For many people, CPP-D is a modest benefit, but combining it with other income (including retroactive lump-sum payments) can create tax challenges.

Disability Tax Credit (DTC) and Offsetting Taxes

The Disability Tax Credit (DTC) can help offset taxes owed on disability benefits. If you qualify, the DTC reduces the amount of income tax you pay and may even provide retroactive tax relief for up to 10 years.

This is particularly important for CPP-D recipients, as it can ease the tax burden created by taxable benefits.

Strategies to Manage the Tax Impact

  1. Plan for withholdings. Ask your insurer or Service Canada to withhold taxes from your benefits so you aren’t surprised at tax time.

  2. Spread out lump sums. If you receive a large retroactive payment (e.g., back pay from CPP-D), request a T1198 form to spread the income across multiple years for tax purposes.

  3. Keep good records. Hold onto your T4 slips, insurance documents, and medical expense receipts.

  4. Use credits wisely. Apply for the Disability Tax Credit or caregiver credits to reduce your tax bill.

  5. Seek advice. Tax professionals or disability lawyers can help maximize credits and minimize liability.

Why This Matters

Taxes may not be the first thing on your mind when applying for disability benefits, but failing to plan can create financial stress later. Understanding how your benefits are treated—and knowing which strategies can help—ensures you keep as much support as possible in your pocket.

Final Thoughts

Disability benefits are designed to provide financial stability during challenging times, but taxation rules can complicate things. The good news is that with proper planning—and sometimes legal support—you can minimize the tax impact and focus on your health and recovery.

At Hilborn & Konduros, we guide clients through every stage of the disability claims process, including the tax implications that come with receiving benefits. If you’re unsure how your benefits will affect your taxes, we’re here to help.

WSIB Claims in Ontario: Common Mistakes That Could Cost You

Common WSIB Claim Mistakes That Could Cost You

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If you’ve been injured at work, you may be entitled to benefits through Ontario’s Workplace Safety and Insurance Board (WSIB). Unfortunately, many claims are delayed or denied because of avoidable mistakes.

At Hilborn and Konduros, we’ve worked with injured workers across Kitchener-Waterloo to help them get the compensation they deserve. Here are some of the most common missteps we see—and how to avoid them.

1. Waiting Too Long to Report the Injury

Reporting your injury to your employer as soon as possible is crucial. Delays can raise questions about when and how the injury occurred, which could hurt your claim. Always document the incident in writing, even if you speak to someone in person.

2. Skipping Medical Treatment

Even if your injury seems manageable, it’s important to get checked by a doctor. Medical records are a key part of your WSIB file. If you don’t follow through with appointments or treatment, the WSIB may assume your injury isn’t serious.

3. Downplaying Your Symptoms

Some workers try to “tough it out” or return to work too quickly. But if you aren’t fully recovered, this can make things worse and impact your claim. Be honest about your pain and limitations, both with your doctor and the WSIB.

4. Trying to Handle It Alone

The WSIB system can be complicated, especially if your claim is denied. A WSIB lawyer in Kitchener or Waterloo can help you gather the right evidence, meet important deadlines, and guide you through appeals if needed.

You Don’t Have to Face It Alone

If your benefits were denied, cut off, or delayed, legal advice can make all the difference. Hilborn and Konduros offers free consultations, and we’re here to help injured workers throughout the region move forward with confidence.

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Navigating Disability Benefits in Kitchener-Waterloo: What You Need to Know in 2025

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If you’re unable to work due to illness or injury, you may be eligible for long-term disability (LTD) benefits—but navigating the application or appeal process can be confusing and stressful. At Hilborn and Konduros, we help individuals in Kitchener, Waterloo, Cambridge, and across Ontario access the support they deserve when facing a disability.

Understanding Long-Term Disability Benefits
LTD benefits provide financial support to those who can’t work due to a prolonged medical condition. These benefits are usually offered through employer-sponsored group insurance plans or privately purchased disability policies. To qualify, you’ll need to meet the policy’s definition of “disability” and provide extensive medical documentation.

Denied LTD Claim? You’re Not Alone
Unfortunately, denied disability claims are common. Insurance companies may argue that you are not “totally disabled” or that you haven’t provided enough evidence. If your LTD claim has been denied or terminated, you still have options.

At Hilborn and Konduros, we assist clients with:

Reviewing denial letters and insurance policies
Gathering medical reports and expert opinions
Filing appeals or initiating legal action when necessary


Local Legal Support You Can Trust
As experienced disability lawyers in Kitchener-Waterloo, we understand the challenges you’re facing. We’ve helped many clients across the region fight denied disability claims and get the benefits they’re owed.

If your claim has been denied, there are strict deadlines to file an appeal or lawsuit. Contact our office today to book a free consultation with a disability lawyer in Kitchener or Waterloo. We’re here to help you move forward with confidence.

What to Say When the Insurance Company Calls

What to Say When the Insurance Company Calls

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After an accident or injury, hearing from the insurance company might feel routine—but what you say on that call can have long-term consequences. The person on the other end may sound friendly, but their goal is to protect the company’s bottom line, not necessarily to help you.

Start by being polite but cautious

You can confirm your name, contact info, and the date of the incident, but you don’t need to go further right away. If the adjuster starts asking for details about how the accident happened or how you’re feeling, it’s okay to pause. You’re not required to answer everything on the spot, and you certainly don’t have to go into detail before you’re ready.

Avoid guessing or minimizing

One of the most common mistakes people make is downplaying how they’re feeling. Saying something like “I’m doing okay” can seem harmless, but it may be used to argue that your injuries aren’t serious. On the flip side, guessing or speculating about what happened—especially when you’re still processing it—can open the door to misinterpretation later.

Don’t give a recorded statement right away

If they ask to record the call, you can decline or ask to reschedule. A simple response like “I’d prefer to speak with my lawyer before giving a recorded statement” is more than enough. Once something is on record, it can be replayed and dissected—and sometimes, innocent comments get twisted or taken out of context.

Never admit fault

Even casual phrases like “I didn’t see them” or “maybe I was going too fast” can be viewed as admissions. It’s human nature to want to be polite or take some of the blame, but in legal terms, that can have consequences. Stick to what you know and avoid making assumptions or accepting fault.

It’s okay to ask for more time

If you’re caught off guard or feeling unsure, there’s nothing wrong with asking to continue the conversation later. Say something like, “I’m not in a position to speak right now—can I get back to you once I’ve had time to review things?” Taking time to prepare is a smart move that helps you avoid saying something that could affect your claim.

Why having legal guidance matters

Insurance adjusters work for the insurer, not for you. They’re trained to gather information in ways that might limit what you receive. Having someone in your corner—especially early on—can make a big difference in how your claim is handled.

If you’re feeling unsure about how to deal with an insurance call after an accident, you’re not alone. At Hilborn and Konduros, we can help you navigate these conversations, protect your rights, and make sure you’re not taken advantage of. Reach out to us before you speak to the insurer—we’ll make sure you’re prepared.

The Impact of Surveillance Evidence on Personal Injury Claims

The Impact of Surveillance Evidence on Personal Injury Claims

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In Ontario personal injury law, insurance companies often conduct surveillance on claimants to look for inconsistencies between their reported injuries and their observed activities. While this can be legal, it raises concerns about privacy and fairness.

Surveillance may include video recording, photography, and online monitoring, particularly social media posts. If you’re claiming significant limitations, but you’re recorded doing physically demanding tasks, the insurer may use this to dispute your credibility.

However, surveillance has limits. Courts often scrutinize how and when the surveillance was conducted, whether it was misleading or out of context, and whether it reflects the claimant’s typical abilities. For example, someone photographed lifting a bag on one good day doesn’t disprove they suffer chronic pain the rest of the week.

Ontario courts generally allow surveillance evidence, but it must be disclosed during the discovery process. It cannot be used as a surprise in trial unless there are exceptional circumstances.

If you suspect you’re under surveillance, continue to follow your treatment plan and be honest with your doctor and lawyer. Don’t exaggerate or minimize your injuries.

To ensure your personal injury claim is handled fairly, including how to respond to surveillance, contact Hilborn and Konduros in Cambridge, Ontario.

Understanding the Definition of 'Total Disability' in Insurance Policies

Understanding the Definition of ‘Total Disability’ in Insurance Policies

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If you’re applying for disability benefits, understanding how “total disability” is defined in your insurance policy is critical. In Ontario, insurance companies often use specific criteria to determine whether someone qualifies, and these definitions can vary significantly between policies.

Total disability typically means that an individual is unable to perform the essential duties of their own occupation due to illness or injury. Some policies start with an “own occupation” definition and later transition to an “any occupation” definition after a certain period (commonly two years). This means the insured must be unable to work in any occupation they are reasonably suited for by education, training, or experience.

This shift in definition can lead to disputes between the insurer and claimant. The insurer may argue that the individual can perform some other type of work, even if it’s less suitable or pays significantly less.

Medical documentation is key. Your doctor’s opinion, along with detailed reports about your diagnosis, treatment history, functional limitations, and prognosis, all help determine whether you meet the definition of total disability.

If your benefits are denied based on this definition, you have the right to appeal or pursue legal action. For support interpreting your disability insurance policy and advocating for your rights, contact Hilborn and Konduros in Cambridge, Ontario.

Long-Term Disability vs. Personal Injury Claims: What You Need to Know

Long-Term Disability vs. Personal Injury Claims: What You Need to Know

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Navigating the world of long-term disability (LTD) and personal injury claims can be complex, especially in Ontario, where the laws and processes governing these claims are distinct but sometimes interconnected. Understanding the differences between these two types of claims is crucial for anyone dealing with a serious injury or disability. This post will explore the key differences and provide guidance on what you need to know if you are pursuing either or both types of claims.

What is a Long-Term Disability Claim?

A long-term disability (LTD) claim is made when an individual is unable to work due to a disability, illness, or injury for an extended period. In Ontario, LTD benefits are typically provided through private insurance policies, either purchased individually or provided as part of an employer’s benefits package. These benefits are intended to replace a portion of your income—usually between 60% and 85%—to help you meet your financial obligations while you are unable to work.

LTD claims are typically filed with your insurance company, and the eligibility for benefits depends on the specific terms of your policy. Insurance companies often require detailed medical documentation to prove that your condition prevents you from performing your job or any other occupation for which you are reasonably suited by education, training, or experience.

What is a Personal Injury Claim?

A personal injury claim, on the other hand, is a legal action taken to seek compensation for injuries sustained due to another party’s negligence or wrongful act. This could include car accidents, slip and falls, medical malpractice, or any other incident where someone else’s actions caused you harm.

In Ontario, personal injury claims are governed by tort law, and the compensation awarded can cover a wide range of damages, including medical expenses, lost wages, pain and suffering, and more. Unlike LTD claims, which are typically handled through insurance companies, personal injury claims often involve legal action against the responsible party.

Key Differences Between LTD and Personal Injury Claims

  1. Source of Compensation:

    • LTD Claims: Compensation comes from an insurance policy, either private or provided by an employer.
    • Personal Injury Claims: Compensation is sought from the at-fault party, often through a lawsuit.

  2. Type of Damages Covered:

    • LTD Claims: Focus on income replacement, providing a portion of your salary while you are unable to work.
    • Personal Injury Claims: Can cover a broader range of damages, including medical expenses, pain and suffering, loss of future earning capacity, and more.

  3. Eligibility Requirements:

    • LTD Claims: Based on the terms of your insurance policy, usually requiring proof that you cannot perform your job due to a disability.
    • Personal Injury Claims: Require proving that another party was at fault for your injuries and that those injuries have caused you damages.

  4. Duration of Benefits:

    • LTD Claims: Benefits can last for a specific period, such as two years, or until you reach retirement age, depending on the policy.
    • Personal Injury Claims: Compensation is generally a one-time payment, either through a settlement or court award.

Interplay Between LTD and Personal Injury Claims

It’s not uncommon for individuals to have both an LTD claim and a personal injury claim simultaneously. For example, if you are injured in a car accident, you might file a personal injury claim against the at-fault driver while also seeking LTD benefits through your insurance. In such cases, the compensation received from a personal injury claim may affect your LTD benefits, as some policies allow insurers to offset the amount they pay by the amount you receive from other sources.

Understanding the differences between long-term disability and personal injury claims is essential for effectively managing your financial recovery after an injury or disability. Each type of claim serves a different purpose and involves different processes and sources of compensation.

If you are dealing with a disability or have been injured and are unsure of how to proceed, the experienced lawyers at Hilborn and Konduros in Cambridge, Ontario, can help. Contact us today to discuss your case and ensure that your rights are protected throughout the process.

The Importance of a Comprehensive Disability Insurance Policy

The Importance of a Comprehensive Disability Insurance Policy

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Having a comprehensive disability insurance policy is essential for anyone who relies on their income to support themselves and their family. In Ontario, as in the rest of Canada, disability insurance serves as a crucial safety net, providing financial support if you become unable to work due to illness or injury. However, not all disability insurance policies are created equal, and having a comprehensive plan can make a significant difference in your financial security.

What is Disability Insurance?

Disability insurance provides income replacement if you are unable to work due to a disability, whether it’s a result of an injury, illness, or chronic condition. In Ontario, there are several types of disability insurance, including short-term and long-term policies, as well as coverage offered through employer plans, private insurance, and government programs like the Canada Pension Plan (CPP) disability benefits.

The Importance of Comprehensive Coverage

  1. Income Protection

The primary purpose of disability insurance is to protect your income if you are unable to work. A comprehensive policy typically covers a higher percentage of your income, often up to 70-85%. This is crucial in maintaining your standard of living and ensuring you can meet your financial obligations, such as mortgage payments, utility bills, and other essential expenses, during your recovery period.

  1. Broader Definition of Disability

A comprehensive disability insurance policy often has a broader definition of what constitutes a disability. For example, some policies only provide benefits if you are unable to perform any job, while others offer “own occupation” coverage, which means you are eligible for benefits if you cannot perform the specific duties of your occupation. This is particularly important for professionals and skilled workers, whose ability to perform their specific job tasks may be more critical than being able to work in any capacity.

  1. Longer Benefit Period

The duration of benefits is another critical factor. Comprehensive policies usually offer longer benefit periods, sometimes until retirement age, whereas less comprehensive plans might only provide coverage for a few years. A longer benefit period is especially important for those with conditions that may not improve or may worsen over time.

  1. Inflation Protection

A comprehensive disability insurance policy may also include inflation protection, ensuring that your benefits keep pace with the cost of living. This feature is essential for maintaining your purchasing power over time, especially if your disability lasts for many years.

  1. Additional Features

Comprehensive policies often include additional features such as cost-of-living adjustments (COLA), partial disability benefits (which provide income if you can work part-time but not full-time), and waiver of premium (which allows you to stop paying premiums while receiving benefits). These features add significant value and protection, ensuring that the policy meets your needs in a wide range of circumstances.

The Risks of Inadequate Coverage

Without comprehensive coverage, you may find yourself without sufficient income to cover your expenses if you become disabled. Some people rely on group disability insurance provided by their employer, but these policies often have limitations, such as lower benefit amounts, shorter benefit periods, and strict definitions of disability. Additionally, if you change jobs or lose your employment, you may lose your coverage.

Conclusion

A comprehensive disability insurance policy is not just a luxury; it’s a necessity for anyone who depends on their income. It offers peace of mind by ensuring that you have the financial resources to support yourself and your family if you become unable to work. By providing broader coverage, longer benefit periods, and additional features, a comprehensive policy ensures that you are protected in a wide range of situations.

If you have questions about your disability insurance coverage or need assistance with a disability claim, the experienced lawyers at Hilborn and Konduros in Cambridge, Ontario, can help. Contact us today to discuss your situation and ensure that your rights are protected.

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