Type 1 Diabetes and insulin-dependent Type 2 Diabetes can qualify for the Disability Tax Credit under the Life-Sustaining Therapy category. CRA requires that the therapy take at least 14 hours per week, which includes time for blood glucose monitoring, insulin administration, dietary management, and carbohydrate counting. Many diabetics underestimate their total therapy time — when properly documented, the cumulative daily management often exceeds the 14-hour weekly threshold. Accurate time logging is essential for a successful application.
For a comprehensive overview of all DTC eligibility categories, see our Complete Guide to the Disability Tax Credit in Canada. For more on the Life-Sustaining Therapy category specifically, see our Life-Sustaining Therapy criteria guide.
CRA Functional Category
Life-Sustaining Therapy: CRA evaluates the DTC under the "Life-sustaining therapy requiring at least 14 hours per week" category. Eligibility is based on functional impact — not diagnosis alone. The restriction must be present all or substantially all of the time (at least 90%), even with appropriate therapy, medication, and devices.
Conditions Covered in This Guide
The following conditions are addressed in this guide: Type 1 Diabetes, Type 2 Diabetes Requiring Intensive Insulin Management.
Having one of these conditions does not guarantee DTC eligibility. CRA evaluates whether the condition causes a marked restriction — meaning the person either cannot perform the activity independently or takes approximately three times longer than someone without the impairment. Conditions not listed here may also qualify if they cause equivalent functional impact.
How CRA Evaluates Functional Impact
CRA looks for specific indicators of a marked restriction under the Life-Sustaining Therapy category. The following are common indicators that support eligibility:
- Requires at least 14 hours per week of therapy time
- Therapy is essential for sustaining life
- Includes time for blood glucose monitoring, insulin administration, dietary management, and carbohydrate counting
These indicators must be documented by a qualified medical practitioner on the T2201 form using CRA-aligned functional language. The practitioner should describe what the person cannot do or how long daily activities take — not simply list the diagnosis.
Who Can Sign the T2201
The following practitioners are authorized to complete the T2201 form for the Life-Sustaining Therapy category:
- Endocrinologist
- Nurse Practitioner
- Family Physician
Your practitioner does not need to be a specialist — Nurse Practitioners can sign the T2201 for any category. However, having documentation from a relevant specialist can strengthen the application.
Documents Typically Required
To support a DTC application under this category, the following documentation is typically needed:
- Therapy time logs
- Treatment plans
- T2201 — Life-Sustaining Therapy section
My Benefits Canada coordinates directly with your medical practitioner to ensure all documentation is complete and uses the precise functional language CRA evaluates.
What Happens If You Are Approved
If your DTC application is approved, you may be entitled to:
- Retroactive tax adjustments for up to 10 prior tax years
- Ongoing annual tax reduction through the non-refundable disability amount
- RDSP eligibility — the Registered Disability Savings Plan, which includes government grants and bonds
- Canada Disability Benefit — the new federal income support for working-age Canadians with disabilities (coming 2025-2026)
- Provincial benefits that use DTC eligibility as a gateway
For more on retroactive claims, see our Retroactive Claims Guide. For RDSP details, see our RDSP & DTC Integration Guide.
How My Benefits Canada Can Help
Our team manages the entire DTC application process — from initial eligibility assessment through CRA approval and retroactive tax adjustments. We coordinate directly with your medical practitioner to complete the T2201 using precise, CRA-aligned functional impact language.
Our fee is 25% of retroactive refunds only, collected after approval. No upfront costs. If your application is not approved, you pay nothing.
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My Benefits Canada is not affiliated with the Canada Revenue Agency. This content is for informational purposes only and does not constitute tax or medical advice. Individual eligibility depends on specific circumstances as assessed by CRA.
