Child Disability Benefit for Grandparents: Form T2201 and CDB in Canada

Two Benefits, One Application

When a grandchild in your care has a severe, prolonged physical or mental impairment, two federal supports become available: the Child Disability Benefit (CDB) and the Disability Tax Credit (DTC). They work differently — one is monthly cash, the other is a tax credit — but both start with the same form.

The Child Disability Benefit adds up to $3,480 per year ($290 per month) on top of your regular Canada Child Benefit payment. It's tax-free, paid monthly, and phases out only when household income exceeds $82,847. For most grandparent-led households on pension income, you'd receive the full amount.

The Disability Tax Credit is a non-refundable credit worth up to $10,341 in basic disability amount plus a child supplement of up to $5,914 on your annual tax return. If you provide basic necessities — food, shelter, clothing — for the child, you can claim the transfer on Line 31800 of your T1.

Form T2201: What It Is and Who Fills It Out

Form T2201, the Disability Tax Credit Certificate, has two parts:

Part A — completed by you, the caregiver. It covers your identification, consent for the CRA to adjust previous tax years, and authorization details. Nothing medically complex here.

Part B — completed and signed by a qualified medical practitioner. This is the critical piece. The practitioner must certify that the child has a "marked restriction" in at least one category of daily living (vision, hearing, walking, elimination, feeding, dressing, or mental functions), or an equivalent cumulative restriction, lasting at least 12 continuous months.

Qualified practitioners include physicians, nurse practitioners, psychologists, speech-language pathologists, audiologists, occupational therapists, and optometrists — depending on the type of impairment.

If the Child Already Has an Approved T2201

Here's the good news many grandparents don't realize: if the child's biological parent previously applied for and received the Disability Tax Credit, that T2201 approval stays active on the child's SIN until its expiry date. You don't need to take the child back to the doctor for re-certification.

What you do need:

1. File Form RC66 to establish yourself as the CCB recipient for the child (if you haven't already)
2. Once your CCB claim is approved, the CRA automatically adds the Child Disability Benefit to your monthly payment
3. On your own T1 tax return, claim the transferred DTC amount on Line 31800

The CDB is linked to the CCB — once you're receiving the CCB and there's an approved T2201 on file for the child, the disability supplement starts flowing automatically.

Applying for a New T2201

If the child doesn't have an existing DTC approval — perhaps the disability developed after they moved into your care, or the parents never applied — you'll need to submit a new Form T2201.

The medical certification process can take time. Book an appointment with the child's primary doctor or specialist, explain that you need Part B completed, and bring the form with you. Some practitioners are more familiar with the DTC criteria than others — paediatricians and child psychologists who work with developmental conditions tend to be the most experienced.

Common qualifying conditions in kinship care include autism spectrum disorder, FASD (Fetal Alcohol Spectrum Disorder), severe ADHD, intellectual disabilities, physical impairments, and trauma-related conditions that markedly restrict daily functioning.

Check the CRA's current processing target for Form T2201. Applications can take longer when the CRA needs more information from you or the medical practitioner. If approved, the CDB is added to your CCB for eligible months while the child was in your care.

The Tax Credit Transfer for Grandparents

Beyond the monthly CDB cash, the DTC provides direct tax relief on your annual return. Under Section 118.3 of the Income Tax Act, any relative who provides basic necessities of life to a disabled child can claim the unused portion of the child's disability amount.

For 2026, the basic disability amount is $10,341 and the child supplement is up to $5,914. If the child has little or no taxable income (most don't), the full amount transfers to you. On a grandparent's pension income, this credit can eliminate or substantially reduce your income tax bill.

Claim it on Line 31800 of your T1. You don't need a separate form — just the child's SIN and the T2201 approval on file.

Practical Steps

1. Check whether the child already has an approved T2201 — call the CRA at 1-800-387-1193 and ask
2. If approved, make sure you're receiving the CCB for the child (the CDB depends on it)
3. If not approved, book a medical appointment and bring Form T2201
4. On your next tax return, claim Line 31800 for the disability amount transfer

Our kinship caregiver guide includes a walkthrough of Form T2201 alongside the CCB application process, so you can submit both at the same time and avoid separate processing delays.

See more Canada guides →