What should you do first after DTC approval?
Open an RDSP right away, because approval unlocks grants of up to $70,000 and bonds of up to $20,000 over a lifetime. Then claim back taxes for up to 10 years, check the Canada Disability Benefit and child disability benefit, and watch your approval's expiry date.
Need this in plain words? Read the Easy Read version of this guide: short sentences, plain words, the same facts.
You did it. After the forms and the waiting, that letter arrived and it says approved. Take a second and enjoy that, because this is genuinely good news. The Disability Tax Credit, or DTC, is one of the most valuable approvals a Canadian with a disability can hold.
Here is what I wish someone told every family on day one. The approval letter is not the finish line. It is the key. The real difference comes from what that key unlocks next. Too many families file the letter away and stop there, while the biggest money sits unclaimed. So let us walk through what to do next, in order.
1. Open the RDSP right away
This is step one for a reason. DTC approval is the key that unlocks the Registered Disability Savings Plan, or RDSP, a long term savings account built for Canadians with disabilities and the families who love them. Through the RDSP, the federal government can contribute grants of up to $70,000 over a lifetime and bonds of up to $20,000 over a lifetime, depending on income and contributions.
Unused grant and bond entitlement can also be carried forward from up to 10 past years, so you may be able to catch up on years you missed. Catch up grants are capped at $10,500 in a single calendar year, which is why starting sooner gives you more years to work with. To picture your own situation, try our RDSP checker, with zero pressure.
2. Claim your back taxes
Next, look backwards. DTC approval can often be applied retroactively for up to 10 years, so the credit may apply to tax years you already filed. To adjust those returns, you or your tax preparer can file a T1 adjustment request, using Form T1-ADJ, for the years the approval covers. Those adjustments can produce refunds for some people, although amounts vary and nothing is guaranteed until the Canada Revenue Agency reviews your file.
One detail matters here. Your tax return must be filed for benefits and credits to flow properly. Even in a year with little or no income, filing keeps you connected to those programs. If you have missed years, do not panic. It is common, and catching up is a practical, step by step job.
3. Check the Canada Disability Benefit if you are 18 to 64
If you are between 18 and 64, check the Canada Disability Benefit. It adds support for working age Canadians with disabilities, and DTC approval is required to qualify. The catch: it does not arrive automatically. It has its own separate application.
Think of the DTC as the foundation, with different doors opening off it. Programs do not always talk to each other, so check each one by name. For the fuller picture, see my plain English guide to the Canada Disability Benefit.
4. For parents: look for the child disability benefit
If the approved person in your house is your child, this one is for you. The child disability benefit is a tax free monthly amount added through the Canada child benefit for families caring for an approved child. It often follows from your child being eligible for the DTC, but confirm it is actually showing up in your payments rather than assuming it started on its own.
Parents, I know how much paperwork already runs your life. Add this one check to the list. Look at a recent Canada child benefit notice, confirm the amount is there, and if it is missing, ask why. Asking costs nothing.
5. Read your RDSP statement of entitlement every year
Once your RDSP is open, a document will arrive each year that most people honestly ignore. It is called your statement of entitlement, and I need you to be the person who reads it. It tells you exactly how much grant room you have for the year, including amounts carried forward. In plain terms, it shows how much contribution room could attract government grant money that year.
Without it, families are guessing. With it, you can plan calmly, on paper, before anyone puts a dollar anywhere. Keep each year's statement with your RDSP paperwork. Small habit, big payoff in clarity.
6. Watch the expiry date
A word of caution that protects everything you built. Some DTC approvals are indefinite, but others are time limited and must be renewed before they lapse. Check your letter for an end year and put that date in your calendar with room to spare. Renewal takes time and a medical practitioner's involvement, so early is your friend.
If a DTC approval lapses, RDSP grants and bonds can pause along with it, because the whole plan rests on that eligibility. A lapse can mean missed money and needless stress. A simple calendar reminder, set well ahead, is one of the cheapest forms of protection in your financial life.
7. Tell your future self, and the people who help you
Last step, and it is a human one. Keep your approval letter somewhere safe, and make sure the family members who help you know it exists and where to find it. If a trusted person ever has to step in and help with your affairs, that letter explains one of the most important facts in the file. Information that lives in only one person's head is information at risk.
So there is your order of operations. DTC first, then the RDSP, then back taxes, then the other benefits your approval unlocks, with a yearly eye on your statement of entitlement and your expiry date. You already did the hardest part, which was getting approved. Now, at your own pace, let that one letter do the full job it was meant to do. I am cheering for you. Around here, that is what we do: turn good news into lasting security, one clear step at a time.
New here? Start with the RDSP and Disability Finance hub for the short version of how it all fits together.
Common questions
What should I do first after my DTC is approved?
Open the RDSP right away. DTC approval is the key that unlocks the Registered Disability Savings Plan, and with it government grants and bonds that can add up to $90,000 over a lifetime. The approval letter is not the finish line. It is the starting point, and the plan is where the biggest long term money sits.
Can I claim back taxes after a DTC approval?
Yes. If the CRA approved your DTC for past years, you can ask to adjust those earlier tax returns and claim the credit for the years you were eligible. This is step two on the list for a reason. Families are often surprised how much a decade of missed credits can add up to once the returns are adjusted.
What other benefits should I check after approval?
If you are 18 to 64, check the Canada Disability Benefit. Parents should look at the child disability benefit, which comes with the Canada child benefit for an approved child. Approval can also open caregiver credits, medical expense claims, and other supports, so the letter is worth reviewing against the full list, not just the RDSP.
How do I protect my DTC approval?
Read the statement of entitlement that comes with your RDSP every year, and put your DTC expiry date on the calendar if your approval has one. Many approvals are time limited, and a lapse can pause RDSP grants and bonds. Renewing early, with a fresh Form T2201, is far easier than restarting after everything has stopped.
This guide is part of our pillar guide, the Disability Tax Credit explained, step by step.
See where you stand: the free DTC eligibility checker takes about a minute and shows whether you, or someone you care for, may qualify for the Disability Tax Credit. No signup, and no pressure.
A quick note: this post is educational, not financial advice. For guidance on your own situation, book a free conversation. You don't have to figure this out alone. I'm here to help you through every step.