The Disability Benefit Regulations under the Income Tax Act, 2000, also known as Newfoundland and Labrador Regulation 102/24, were established to provide a monthly disability benefit for eligible individuals. The purpose of this regulation is to outline the conditions under which individuals can qualify for and receive a disability benefit in the province.

The regulations specify the criteria for being considered an eligible individual. To qualify, an individual must be between the ages of 18 and 65, a resident of Newfoundland and Labrador, and must be a DTC-eligible individual, which refers to someone who meets the eligibility requirements for the Disability Tax Credit under the federal Income Tax Act. Furthermore, the individual must have filed a return of income for the immediately preceding taxation year. An eligible individual’s cohabiting spouse or common-law partner may also be considered in the calculation, but only if they are not a DTC-eligible individual or have a reduced income based on the formulas provided in the regulations.

A key aspect of these regulations is the provision for individuals who may experience an overpayment of taxes. The regulations establish a formula for determining the amount of overpayment, which is calculated based on the individual’s income and the presence of a cohabiting spouse or common-law partner who is also a DTC-eligible individual. The overpayment amount is determined by a specific formula, which varies depending on whether the eligible individual has a cohabiting spouse or common-law partner who is also DTC-eligible. If the individual has no cohabiting spouse or their partner is not DTC-eligible, the reduction based on income is calculated at 36.92% of the individual’s adjusted income that exceeds $29,402. If the individual’s cohabiting partner is DTC-eligible, the reduction is 18.46% of the adjusted income above the same threshold.

The total amount of overpayment, after accounting for any applicable reductions, is divided by 12 to calculate the monthly disability benefit amount. If the resulting monthly amount is less than $10, the full annual amount of the overpayment will be refunded in one lump sum at the start of the payment period. This is intended to ensure that individuals who are eligible for smaller refunds are not subject to frequent small payments. These payments will be refunded monthly to eligible individuals, with the first payment for the year being issued in the first month of the payment period.

The Disability Benefit Regulations are designed to provide financial relief to individuals who have a disability and meet the required criteria, ensuring that they receive assistance in a timely manner. The benefit is structured to be accessible for individuals who may have been overpaying taxes, with a clear and straightforward method for calculating the overpayment amount and refunding it to eligible individuals. By addressing the specific needs of DTC-eligible individuals and their families, these regulations aim to improve the financial well-being of those living with disabilities in Newfoundland and Labrador.

Newfoundland and Labrador (102/24) December 27, 2024