CRA DTC Denied? 2026 Reconsideration Guide)

Opening a letter from the Canada Revenue Agency (CRA) only to see the word "Denied" regarding your Disability Tax Credit (DTC) application is exhausting. You likely spent months gathering medical records and paying your doctor to fill out Form T2201, only to have a tax assessor decide your condition isn't "severe" enough.

In 2026, the CRA is increasingly strict about the specific language used in these applications. However, a denial is often just a request for more information. Instead of jumping straight to a high-conflict legal appeal, most successful applicants use a "hidden" middle step: The Request for Reconsideration.

This is the Direct Problem Solver Guide for fixing a rejected DTC application. We decode the reasons behind the "No," explain the 2026 timelines for a second review, and provide a strategy to help your doctor fix the original errors.

Related: Fix Common Rejection Errors before you appeal.

Quick Answers: DTC Reconsideration

How do I ask the CRA to reconsider my DTC denial?

You can request a reconsideration (also called a "Second Review") by writing a letter to your regional Tax Centre.¹ You must include new or updated medical information that was not in your original application.² This is different from a formal objection, which is used when you believe the CRA applied the law incorrectly despite having all the facts.

How long does a DTC reconsideration take in 2026?

The target processing time for a DTC reconsideration is generally 8 to 12 weeks. However, if the CRA needs to send a follow-up questionnaire to your doctor, the timeline can stretch to 16 weeks. You can track the progress of your review using the Progress Tracker in your CRA My Account.³

What is the difference between a Reconsideration and a Formal Objection?

A Reconsideration is a "second look" where you provide more medical evidence to fix a weak application.⁴ A Formal Objection (filed via a Notice of Objection) is a legal dispute handled by the Appeals Branch.⁵ You have 90 days from the date of your denial letter to file a formal objection.⁶

The Top 3 Reasons for 2026 Rejections

Before you write your letter, you must understand exactly why the CRA said no. Their decision is almost always based on one of these three technicalities:

1. The "Activities of Daily Living" Gap

Your doctor may have confirmed your diagnosis but failed to describe how it limits you.⁷ The CRA doesn't care if you have "severe arthritis"; they care if you cannot walk 100 metres without significant pain or help.

• The Fix: Your reconsideration must focus on Function, not Diagnosis.⁸

2. The "90% Rule" Failure

To qualify, your impairment must be "marked," meaning it affects you "all or substantially all of the time" (generally interpreted as 90% of the time).⁹

• The Fix: If your condition is episodic (like MS or Epilepsy), you must prove that even during "good" days, the risk or recovery time prevents you from functioning at a normal speed.

3. Inordinate Time (The 3x Rule)

For many categories, you must prove you take an inordinate amount of time to complete a task. In 2026, the CRA's internal standard for "inordinate" is generally three times longer than a person without the disability.

$$Time_{Patient} \ge 3 \times Time_{Peer}$$

DTC Denial and the Canada Disability Benefit (CDB) Trap

In 2026, the stakes for a DTC denial have shifted from "missing a tax credit" to "losing a monthly income." The Canada Disability Benefit (CDB), which provides up to $200 per month ($2,400 per year) for low-income adults, is strictly tied to the DTC.

The "Hard-Gate" Problem:

If your DTC application is denied, you are automatically ineligible for the CDB. This creates a high-anxiety situation for families who were counting on that $200 monthly supplement to cover basic living costs.

The Strategy for 2026:

If you receive a DTC denial while waiting for the CDB, do not reapply for the CDB immediately. You must first resolve the DTC "No."

• Concurrent Appeals: You have 180 days to ask for a CDB Reconsideration, but Service Canada will simply wait for the CRA's decision on your DTC.
• The Back-Pay Protection: If your DTC is eventually approved through the reconsideration process, the CRA will back-date your eligibility. This allows you to claim retroactive CDB payments all the way back to July 2025 (the program’s start date), potentially resulting in a lump-sum deposit of over $1,400.

The Success Rate of Reconsiderations vs. New Applications

A common question is: "Should I ask for a reconsideration or just start over with a new doctor?" In 2026, the success rate for reconsiderations is significantly higher than for initial applications, provided you address the specific "Notice of Determination" code. The CRA prefers to see a "clarification" of an existing file rather than a brand-new application that might look like "doctor shopping."

Why Reconsiderations Win:

• Context: The assessor already has your file open.
• Targeted Evidence: When you provide a "Request for Reconsideration" letter, you are telling the CRA exactly where they were wrong.
• The "Cumulative Effect" Secondary Review: Often, a senior assessor reviews reconsiderations, whereas a junior agent may have handled the initial denial. Senior agents are more likely to understand the Cumulative Effect of two moderate disabilities.

The Working Income Exemption Math for 2026

Many applicants are denied the DTC because the CRA sees they are still working. The assessor may think, "If they can work 20 hours a week, they aren't severely impaired." However, the 2026 rules for the Canada Disability Benefit include a Working Income Exemption that you can use as evidence in your DTC reconsideration.

The Math:

The government allows disabled workers to earn a certain amount without it counting against their benefits. This recognizes that working with a disability requires extra costs (transportation, specialized aids, or extra time).

• Single Individuals: Up to $10,000 of working income is exempted.
• Couples: Up to $14,000 of combined working income is exempted.

How to use this in your appeal:

If the CRA denied you because you are "able to work," point to these 2026 thresholds. Argue that your ability to work a limited number of hours—often with significant pain or 3x more time—falls within the government's own recognition of "Working while Disabled." Check how these dates align with other benefits on our Master Payment Calendar 2026.

Using the "CRA My Account" Progress Tracker for Appeals

In 2026, the CRA Progress Tracker inside your My Account portal has been updated to show more than just "In Progress."

What the Statuses Mean:

• "Additional Information Requested": This is a red flag. It means the CRA has sent a follow-up questionnaire to your doctor. Action: Call your doctor immediately. If they don't respond within 45 days, your reconsideration will be denied by default.
• "In Queue for Medical Review": Your file is with a nurse or doctor at the CRA. This usually takes 4–6 weeks.
• "Notice of Determination Sent": The decision is made. Check your "Mail" tab in My Account instantly; you don't have to wait for the physical letter.

The "Specialist" Weight: Why GP Letters Often Fail

If your original application was signed by your General Practitioner (Family Doctor) and was denied, your reconsideration must include a letter from a specialist.

The CRA Hierarchy of Evidence:

The CRA gives significantly more weight to specialists in the following categories:

• Mental Functions: Psychiatrist or Psychologist.
• Walking: Physiotherapist or Occupational Therapist.
• Hearing: Audiologist.

If your GP said you have "severe anxiety," and the CRA said "No," a 1-page letter from a Psychiatrist confirming the same facts will turn that "No" into a "Yes" almost 80% of the time. The specialist is viewed as the "ultimate authority" on the 3x Time Rule.

This specialist proof is also required to unlock the Disability Supplement for students.

Final Check: The 12-Month Duration Rule

Before you spend time on a reconsideration, ensure you meet the Prolonged requirement.

• The Rule: The impairment must have lasted, or be expected to last, at least 12 months.
• The 2026 Trap: If you were injured in June 2025 and applied in January 2026, the CRA may deny you because the "12-month" mark hasn't been hit yet.
• The Fix: Have your doctor clearly state that the condition is permanent or chronic and not expected to improve significantly within the year.

The Reconsideration Letter: What to Include

A successful reconsideration letter is short, professional, and evidence-based. Do not focus on your emotions or how much you need the money; focus on the medical facts.

The "Sample" Strategy:

• Reference the Case: Include your Social Insurance Number and the date of the denial letter.
• Identify the Activity: Clearly state which category you are focusing on (e.g., Mental Functions, Walking, or Dressing).
• Attach New Evidence: Never just send the same form back. Attach a new, more detailed letter from a specialist or a fresh T2201 that corrects the errors in the first one.¹⁰

Pro Tip: Ask your doctor to use specific "CRA-Friendly" phrases like "The patient requires constant supervision for safety" or "The patient takes an inordinate amount of time (approx. 45 minutes) to dress themselves."

The "Follow-up Questionnaire" Trap

During the reconsideration process, the CRA may send a clarification letter or questionnaire directly to your doctor.¹¹

• The Danger: Many doctors find these 10-page forms annoying and fill them out hastily. If their answers in the questionnaire contradict what they wrote on the original T2201, the CRA will automatically uphold the denial.
• The Solution: Call your doctor's office. Ask them to alert you if a questionnaire arrives. Offer to sit down with them to ensure the answers accurately reflect your daily life.

When to Skip Reconsideration and File an Objection

If your doctor provided a perfect, detailed application that proved you take 3x longer to walk, and the CRA still denied you, a second review likely won't help. This is a legal disagreement.

• The Timeline: You must file a Formal Objection within 90 days of the date on your Notice of Determination.¹²
• The Benefit: Objections are handled by Appeals Officers who are not the same people who denied you the first time. They often have a better understanding of the legal nuances than the initial assessors.

DTC and the "Cumulative Effect" Strategy

If you were denied because your walking wasn't bad enough and your mental functions weren't bad enough, you should use the Cumulative Effect section during your reconsideration.

This allows you to add two "Significant" (but not "Marked") restrictions together.

• The Argument: If walking takes you 2x longer and dressing takes you 2x longer, the combined effect is a "Marked" restriction. This is the #1 way to get approved for multi-symptom conditions like Fibromyalgia or complex autoimmune diseases.

Financial Impact: Why the Appeal is Worth It

In 2026, an approved DTC is worth more than ever.

• The Canada Disability Benefit (CDB): An approved DTC is the primary door to the new monthly CDB payments.
• Retroactive Refunds: If your reconsideration is successful, you can claim the tax credit back for up to 10 years.¹³
• Child Support: If the application is for a child, it increases your monthly CCB payments by the "Child Disability Supplement."

Need Income While You Wait?

A reconsideration or objection can take 4 to 6 months to resolve. If your disability has made it difficult to maintain a full-time job and you need immediate cash flow:

👉 Find Daily Pay Jobs at BetterPayJobs.ca

About the Author

Jeff Calixte (MC Yow-Z) is a Canadian labour market researcher and digital entrepreneur specializing in government benefit data and cost-of-living support. As the founder of CanadaPaymentDates.ca and BetterPayJobs.ca, Jeff helps newcomers, students, and workers navigate the Canadian social safety net—from tracking CRA payment schedules to finding entry-level work.

Sources

• Canada Revenue Agency: CRA's review and decision process for DTC
• Disability Benefits Wayfinder: If your DTC application is denied
• Tax Court of Canada: Appeals and objections guide

Note

Official 2026 payment dates and benefit amounts are determined by the Canada Revenue Agency (CRA) and provincial governments. While we strive to keep this information current, government policies and schedules are subject to change without notice. All data in this guide is verified against official CRA circulars at the time of publication and should be treated as an estimate. We recommend confirming the status of your personal file directly via CRA My Account or by calling the CRA benefit line at 1-800-387-1193.