Common Reasons DTC Applications Are Rejected — and How to Avoid Them

A Disability Tax Credit application can be denied for many reasons — and it is worth being clear from the outset that a denial does not always mean the applicant does not have a condition that could qualify. Often, it means the application, as submitted, did not provide the CRA with the specific information needed to demonstrate that the eligibility criteria are met. This distinction matters because it points toward what can be done next.

Reason 1: The Certification Describes the Diagnosis, Not the Functional Impact

A medical practitioner’s certification that says, in effect, "patient has [condition]" describes a diagnosis — but the DTC eligibility criteria are about functional impact, not diagnosis. Two people with the same diagnosis can have very different levels of functional limitation, and the CRA’s assessment is based on the latter. A certification that does not describe how the condition specifically restricts the applicant’s ability to perform basic activities of daily living — in terms like "unable to," "takes an inordinate amount of time," or "all or substantially all of the time" — may not provide enough information for approval, even if the underlying condition is genuinely severe.

Reason 2: The "All or Substantially All of the Time" Threshold Is Not Addressed

Eligibility generally requires that the restriction applies all or substantially all of the time — commonly interpreted as at least 90% of the time. For conditions that fluctuate — periods of significant impairment alternating with periods of relative function — the certification needs to address this specifically: is the cumulative time spent in a restricted state at or above this threshold? A certification that does not address frequency or duration, focusing only on the existence of the condition, may leave this critical question unanswered.

Reason 3: The Impairment Does Not Clearly Fit Within an Eligible Category

The DTC categories (vision, walking, mental functions, life-sustaining therapy, and others) are specific. A condition that causes significant difficulty in daily life, but does not clearly map onto one of these categories as described in the certification, may be denied — not necessarily because the condition is not significant, but because the application did not connect it to one of the recognized categories in the way the CRA’s assessment framework requires. This is particularly relevant for the "cumulative effect" category, which is more complex to certify and may require more detailed information than a single-category claim.

Reason 4: Missing or Incomplete Information

Applications can be denied, or returned for more information, simply due to incomplete sections — a question left blank, a required signature missing, or insufficient detail in a narrative section. While these issues are often correctable, they add time to the process and, if not addressed, can result in a denial that might have been avoided with a more complete initial submission.

Reason 5: The "Prolonged" Requirement Is Not Clearly Established

For conditions that are relatively recent in onset, the certification needs to address the expectation that the impairment will last at least 12 months. If the medical practitioner’s certification does not speak to the expected duration — particularly for newly diagnosed conditions where long-term prognosis may feel less certain — this can be a point of denial, even if the condition is, in practice, expected to be long-term or permanent.

What to Do If Your Application Is Denied

Request a Review or Reconsideration

If a denial appears to be based on incomplete or unclear information rather than a genuine absence of qualifying impairment, requesting that the CRA review the application — potentially alongside additional information from the medical practitioner — is often a reasonable first step. This does not require starting over; it can be framed as providing clarification on the existing application.

Submit Additional Medical Information

If the original certification was brief or general, working with the medical practitioner to provide a more detailed letter or supplementary information — specifically addressing the functional impact, frequency, and duration criteria — can support a reconsideration. This is where the preparation suggested in our companion article (concrete examples of how the condition affects daily activities, prepared in advance for the medical practitioner) becomes particularly valuable, whether used in an initial application or a reconsideration.

Formal Objection (Notice of Objection)

If a reconsideration does not resolve the matter, taxpayers have the right to file a formal Notice of Objection, which is reviewed by a different area of the CRA than the original determination. This is a more formal process with specific time limits for filing, and benefits from professional guidance — whether from an accountant, a disability advocate, or in some cases a lawyer specializing in this area — particularly for complex cases.

Reapply With a Stronger Application

In some cases, particularly if significant time has passed or the condition has progressed, reapplying with a new, more detailed application — rather than pursuing a reconsideration of the original — may be the more practical path. This effectively starts the process again, but with the benefit of understanding what the original application lacked.

The Value of Preparation Before Applying

Preparation Step	Why It Helps
Document specific daily examples of the impairment’s impact	Gives the medical practitioner concrete material to work from, rather than relying on general impressions
Review the specific eligible category criteria before the appointment	Helps frame the conversation with the medical practitioner around the language the CRA is assessing against
Allow adequate time for the medical practitioner’s appointment	A rushed appointment may result in a brief certification; requesting a dedicated appointment for this purpose can result in a more thorough one
Consider whether the "cumulative effect" category applies	If no single category clearly applies but the combined effect of several limitations is significant, this category may be relevant — and benefits from being identified before the application is submitted, not after a single-category denial

A Denial Is Information, Not a Final Verdict

It can be discouraging to receive a denial, particularly for someone whose condition genuinely and significantly affects their daily life. But a denial based on an incomplete or unclear initial application is different from a denial that reflects a genuine absence of qualifying impairment — and the path forward depends on understanding which situation applies. Reviewing the specific reasons given for the denial (the CRA’s determination letter typically explains the basis for the decision) against the eligibility criteria is the starting point for determining whether reconsideration, additional information, an objection, or reapplication is the most appropriate next step.