Diabetes & Life-Sustaining Therapy
Type 1 & Type 2 Diabetes Disability Tax Credit Guide
How the CRA 14-hour-per-week rule for life-sustaining therapy (regular treatment needed to stay alive) applies to Type 1 and insulin-based Type 2 diabetes.
CRA Rules
CRA 14-Hours-Per-Week Life-Sustaining Therapy Rule
How the Canada Revenue Agency (CRA) (the federal office that handles taxes and benefits) reviews who may qualify under Section 118.3 of the Income Tax Act.
Under CRA rules (2021 tax year onward), people with Type 1 diabetes are treated as meeting the 14-hour-per-week rule for life-sustaining therapy (regular treatment needed to stay alive). For Type 2 diabetes, who qualifies depends on showing at least 14 hours per week spent handling insulin, testing, and dose changes.
CRA staff do not approve DTC forms based on diagnosis names alone. They look for clear notes showing that daily-life limits are severe and lasting (at least 12 months in a row).
Main Rules to Meet
- Type 1 diabetes is treated as meeting the 14-hour rule under current CRA tax rules.
- Insulin-based Type 2 diabetes needs notes showing 14+ hours/week for blood testing, carb counting, and insulin dosing.
- Therapy must be needed at least 2 times per week to sustain life.
- Can claim up to 10 past tax years.
Disability Tax Credit & Retroactive Refund Estimator
Estimate potential federal + provincial tax savings and retroactive back-pay for up to 10 prior tax years.
Estimated Total Value (5 Years)
$8,674 – $11,736
Estimated federal + Ontario provincial combined savings.
Avoiding a No
Why Type 1 & Type 2 Diabetes claims get denied
Common mistakes doctors and applicants make on Form T2201 Part B (the medical part).
Doctor Using Old Pre-2021 Rules
Some doctors still think Type 1 needs long hour logs. Under current CRA rules, Type 1 is treated as meeting the rule.
Missing Past Tax Years
Not ticking the box that asks the CRA to review past tax years back to the year of diagnosis (up to 10 years).
Type 2 Hour Logs Missing Tasks
Leaving out sensor checks, logs, low-blood-sugar recovery time, and mealtime carb math from the 14-hour count.
Quick Self-Check
If 2 or more of these fit your life, applying for the DTC may be worth a look:
- ☑Have you or your child been diagnosed with Type 1 diabetes or insulin-based Type 2 diabetes?
- ☑Do you spend time checking blood sugar, dosing insulin, or setting devices many times each day?
- ☑Was the condition diagnosed in the past 10 years?
- ☑Does a doctor or diabetes specialist manage your care?
Notes Your Provider Can Use
How a Registered Social Worker helps
For Type 1 diabetes, we make sure your doctor ticks the current life-sustaining therapy box in Form T2201 so approval is straightforward.
Common Questions
Common questions about Type 1 & Type 2 Diabetes & DTC
Does Type 1 diabetes automatically qualify for the DTC in Canada?
Yes. Under federal tax law changes made in 2022 (backdated to 2021), Type 1 diabetes is treated as meeting the 14-hour-per-week rule for life-sustaining therapy (regular treatment needed to stay alive).
Can I claim 10 years of money back for Type 1 diabetes?
Yes. If you were diagnosed 10 or more years ago and paid tax, you can ask the CRA to review the full 10 past tax years.
Does Type 2 diabetes qualify for the Disability Tax Credit?
Type 2 diabetes can count if you use insulin shots or a pump and spend at least 14 hours per week on therapy tasks (testing, carb counting, dose math).
Get clear help with your form
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General information only — not legal, medical, tax, or financial advice. We are not affiliated with the CRA, Service Canada, or any government program. Approval is never guaranteed.