Alberta Disability & Health Credits & Benefits (2025 Guide)
Alberta residents living with a disability, chronic illness, or caring for a family member with special health needs can access a broad range of provincial and federal tax credits, cash benefits, and support programs. This in-depth guide covers the Alberta Assured Income for the Severely Handicapped (AISH), the federal Disability Tax Credit (DTC), Alberta Aids to Daily Living, provincial and federal medical expense credits, caregiver relief, and strategies for stacking multiple credits to maximize your refund.
Key Alberta Disability & Health Credits
- Assured Income for the Severely Handicapped (AISH): Alberta's flagship cash benefit for adults with severe and permanent disabilities. Provides income support, health benefits, and additional supplements for dependants.
- Disability Tax Credit (DTC): A non-refundable federal tax credit for individuals with a severe and prolonged physical or mental impairment, often unlocking additional provincial credits and child/family benefits.
- Alberta Aids to Daily Living (AADL): Provincial program providing funding for approved medical equipment, supplies, and assistive devices (e.g. wheelchairs, prosthetics, communication aids).
- Medical Expense Tax Credit (METC): Federal and Alberta credits for out-of-pocket medical and disability-related expenses not covered by other programs.
- Caregiver Credits & Supports: Credits for those supporting a spouse, child, or family member with a disability (including Canada Caregiver Credit and Alberta supports).
- Supplementary Health Benefits: Provincial drug, dental, and vision coverage for AISH recipients and qualifying low-income Albertans with disabilities.
Assured Income for the Severely Handicapped (AISH)
What is AISH? The AISH program provides monthly income support and health benefits to eligible adults (18+) in Alberta with a severe and permanent disability that substantially limits their ability to earn a living. In addition to basic income (over $1,800/month for an individual in 2025), AISH recipients get coverage for prescription drugs, dental, optical, ambulance, and some medical supplies.
Eligibility Criteria
- Alberta resident, age 18 or older
- Severe and permanent disability expected to last at least 1 year
- Significant restriction in ability to earn a living
- Must meet financial eligibility (income and asset limits for applicant and spouse/partner)
Application & Ongoing Requirements
- Apply directly to Alberta Community and Social Services (forms, medical reports, and financial info required)
- Annual reviews of disability and financial status
- Recipients may work and keep some earnings (with income exemptions)
Tip: AISH is not taxable income and does not reduce your eligibility for the Disability Tax Credit, RDSP, or federal credits. However, it may affect some other provincial benefits—always report AISH receipts correctly.
Disability Tax Credit (DTC) for Alberta Residents
The Disability Tax Credit (DTC) is a non-refundable federal credit that reduces your income tax owing, with a matching Alberta provincial component. It is available to individuals with a severe and prolonged physical or mental impairment, and can be transferred to a supporting family member if not fully used.
Eligibility
- Must have Form T2201 certified by a qualified medical practitioner
- Impairment must be severe, prolonged (at least 12 months), and markedly restricts one or more basic activities of daily living
- Includes physical, mental, intellectual, or behavioral conditions (e.g. mobility, vision, hearing, mental health, autism, diabetes with intensive therapy, etc.)
Claim Steps
- Get Form T2201 completed by your doctor/specialist
- Submit to CRA (online via My Account or by mail)
- If approved, claim the DTC amount on your federal and Alberta returns (Line 31600 for self, 31800 for dependants, 32600 for spouse/partner)
- Unused amounts may be transferred to a supporting relative (parent, spouse, child, grandparent, etc.)
- You can request adjustments for up to 10 prior years if newly approved
Tip: The DTC unlocks additional benefits: Child Disability Benefit, RDSP, and sometimes triggers eligibility for AISH or Alberta Health premium waivers.
Alberta Aids to Daily Living (AADL) & Medical Supplies
Alberta Aids to Daily Living (AADL) is a provincial program that helps cover the cost of approved medical equipment and supplies for eligible residents with chronic health conditions or disabilities. This includes mobility devices (wheelchairs, walkers), communication aids, orthotics/prosthetics, ostomy supplies, respiratory therapy equipment, and more.
Eligibility
- Alberta resident with a long-term disability, chronic illness, or terminal condition
- Must have a valid Alberta Health Care card and a clinical assessment by an authorized health professional
- Income-tested cost-sharing may apply for some items (full subsidy for AISH recipients, low-income, or children)
How to Access
- Assessment and prescription by an AADL-approved health professional
- Vendor supplies equipment; AADL pays approved portion
- Keep all receipts for any co-pays or items not fully covered (may be claimed as a medical expense)
Medical Expense Tax Credit (METC): Alberta & Federal
The METC is a non-refundable credit for out-of-pocket medical and disability-related expenses (not reimbursed or covered by insurance/government). It is claimed on both your federal and Alberta tax returns, with slightly different calculation thresholds.
Eligible Expenses
- Prescription drugs, dental care, vision care
- Mobility aids, prosthetics, hearing aids, CPAP, oxygen therapy
- Attendant care, nursing home fees (see DTC coordination rules)
- Travel >40km for medical treatment unavailable locally (mileage, meals, accommodation)
- Home accessibility renovations (ramps, lifts, accessible bathrooms)
- Medical devices and supplies not covered by AADL or insurance
Claim Process
- Total all eligible expenses for yourself, spouse, and dependents for any 12-month period ending in the tax year
- Subtract the lower of 3% of your net income or the threshold amount (federally: $2,635 for 2025)
- Claim the excess on both your federal and Alberta return (Lines 33099/33199 federally; Alberta schedules auto-calculate)
- Retain all receipts, prescriptions, and supporting documents for 6 years
Tip: Claim unused medical expenses for up to 10 prior years by requesting an adjustment (T1-ADJ or ReFILE). For large claims or where you support other family members, consult a tax professional.
Caregiver Credits & Relief for Alberta Families
Alberta residents supporting a spouse, child, or dependent with a disability may claim the federal Canada Caregiver Credit as well as claim caregiver/medical expenses on their Alberta return. There is no standalone Alberta caregiver credit, but the medical and disability credits are stackable.
- Canada Caregiver Credit: Non-refundable federal credit for supporting an eligible spouse, child, parent, or dependent with a physical or mental impairment. Claimed on your T1 return (Lines 30450, 30400, 30500, 30700).
- Medical Expense/Disability Amount: If your dependent qualifies for the DTC, you may claim additional amounts for supporting them, including transferring unused DTC credits.
- Respite & Community Supports: Alberta Health and Community Social Services offer respite care, home adaptation grants, and other supports—apply through your local health authority or Alberta Supports centre.
Case Examples: Maximizing Alberta Disability Credits
Case 1: AISH & DTC for an Adult with Severe Disability
Sarah (age 28, Edmonton) receives AISH due to a severe mobility impairment. She also has the DTC approved, claimed $9,400 on her federal return (Line 31600) and the Alberta equivalent. Her medical expenses (prescriptions, home modifications) exceed the 3% threshold, so she claims both federal and provincial METC. Her mother, who provides daily care, claims the Canada Caregiver Credit and can transfer Sarah’s unused DTC amount if Sarah’s tax is zero.
Sarah (age 28, Edmonton) receives AISH due to a severe mobility impairment. She also has the DTC approved, claimed $9,400 on her federal return (Line 31600) and the Alberta equivalent. Her medical expenses (prescriptions, home modifications) exceed the 3% threshold, so she claims both federal and provincial METC. Her mother, who provides daily care, claims the Canada Caregiver Credit and can transfer Sarah’s unused DTC amount if Sarah’s tax is zero.
Case 2: Parent of a Child with Autism
John’s 8-year-old son is diagnosed with autism and qualifies for the DTC. John claims the DTC for his son, receives the federal Child Disability Benefit (CDB), and can deduct attendant care and therapy costs as medical expenses. John also applies for AADL coverage for communication devices and receives partial funding, with the out-of-pocket portion claimed on his taxes.
John’s 8-year-old son is diagnosed with autism and qualifies for the DTC. John claims the DTC for his son, receives the federal Child Disability Benefit (CDB), and can deduct attendant care and therapy costs as medical expenses. John also applies for AADL coverage for communication devices and receives partial funding, with the out-of-pocket portion claimed on his taxes.
Case 3: Senior with Multiple Disabilities
Mary, age 72, uses a walker and has vision impairment. She receives AISH, claims the DTC, and receives Alberta Health coverage for medications and mobility aids. Her daughter, who lives with her, claims the Canada Caregiver Credit and medical expenses for Mary. They coordinate to maximize the claim and avoid double-counting expenses.
Mary, age 72, uses a walker and has vision impairment. She receives AISH, claims the DTC, and receives Alberta Health coverage for medications and mobility aids. Her daughter, who lives with her, claims the Canada Caregiver Credit and medical expenses for Mary. They coordinate to maximize the claim and avoid double-counting expenses.
Frequently Asked Questions: Alberta Disability & Health Credits
Can I claim both AISH and the Disability Tax Credit?
Yes. AISH is a provincial benefit and does not affect your eligibility for the DTC or the federal/provincial tax credits. Always claim both if you qualify.
Can I transfer unused DTC credits to a family member?
Yes. If you (the person with a disability) do not need the full DTC to reduce your taxes to zero, you may transfer the unused portion to a supporting spouse, parent, child, grandparent, or sibling—provided they supported you and meet eligibility rules.
What expenses are covered under the Alberta Aids to Daily Living program?
AADL covers a wide range of equipment and supplies, including mobility aids, communication devices, respiratory equipment, and more. A full list is available on the Alberta Health website. Some items require co-pays or cost-sharing for non-AISH/non-low-income recipients.
Can I claim medical expenses for a spouse or dependent?
Yes. You can claim eligible medical expenses for yourself, your spouse/common-law partner, and dependent children under 18 on Line 33099. You may also claim for other dependents (parent, grandparent, adult child) on Line 33199 if you support them and they meet income tests.
What if I missed claiming a disability or medical credit in a previous year?
You can request an adjustment (T1-ADJ or ReFILE) for up to 10 prior years. Attach supporting documents (e.g. T2201, receipts) and explain the reason for the adjustment.
Does AISH or DTC affect my eligibility for other Alberta programs?
Yes. Both AISH and DTC approval may unlock additional Alberta programs—such as low-income health benefits, property tax deferral, and home adaptation grants. Always report your status to Alberta Health and Social Services to ensure full access.
Tips for Maximizing Disability & Health Credits in Alberta
- Apply for the DTC as soon as eligible. Retroactive approval can mean substantial refunds for prior years.
- Coordinate claims between spouses and family to allocate the DTC, medical expenses, and caregiver credits for maximum family benefit.
- If you are approved for AISH or AADL, keep all approval letters and receipts for your records and future claims.
- Use certified tax software or a professional for complex claims (multiple dependents, large medical expenses, home modifications).
- Home modifications (ramps, lifts, accessible bathrooms) are often claimable as both a medical expense and for provincial home adaptation grants—always keep invoices and prescriptions.
- Review eligibility for federal programs (RDSP, Child Disability Benefit, Canada Workers Benefit disability supplement) once DTC is approved.
Related Alberta & Canada-Wide Disability Resources
- Alberta Individual Tax Breaks Directory – All major Alberta personal credits
- Canada Disability Tax Credit Guide – Step-by-step eligibility and application
- Medical Expense Tax Credits – Federal and Alberta claim details
- Alberta Family & Children Credits – Stacking with disability supports
- Canada-Wide Individual Credits – Coordination with Alberta credits
- AISH Official Site (Alberta)
- Alberta Aids to Daily Living (AADL)
For more support or help with complex situations, consult Alberta Community and Social Services, a disability advocacy group, or a tax professional with experience in disability claims.