Quick Answer
Yes, Alberta AISH recipients can and should apply for the federal Disability Tax Credit. AISH (provincial) and DTC (federal) are separate programs with different tests. Approval for one does not impact the other. DTC approval unlocks RDSP grants, bonds up to $90,000 lifetime, and the Canada Disability Benefit. Shelter retroactive DTC lump sums in an RDSP to protect AISH.
Two Separate Programs
AISH (Assured Income for the Severely Handicapped) is administered by the Government of Alberta. It provides monthly financial assistance, health benefits, and personal benefits for adult Albertans with severe and permanent disabilities. Eligibility focuses on the severe impact of the disability on the ability to earn a living, and the program is income- and asset-tested.
The Disability Tax Credit is a federal tax credit administered by the Canada Revenue Agency. Eligibility focuses on whether the impairment markedly restricts a basic activity of daily living. The DTC is not income- or asset-tested.
Why Every AISH Recipient Should Apply for the DTC
- RDSP eligibility: DTC approval is the gateway to the Registered Disability Savings Plan, which provides up to $70,000 in Canada Disability Savings Grants and $20,000 in Canada Disability Savings Bonds over a lifetime. AISH fully exempts the RDSP as an asset
- Canada Disability Benefit: DTC-approved working-age adults (18-64) can receive up to $200/month from the new federal Canada Disability Benefit. Alberta has indicated the CDB will be exempt from AISH calculations
- Retroactive refunds: if eligible for prior years, a retroactive DTC payment of $5,000-$30,000+ can be sheltered in an RDSP
- Credit transfer: if you have a supporting family member with taxable income, your unused DTC can transfer to them, generating tax savings
The AISH Asset Limit and How RDSP Helps
AISH has a non-exempt asset limit (currently $100,000 for a single adult, higher for households). Cash assets exceeding the limit can suspend AISH benefits. A retroactive DTC lump sum could push you over the limit unless sheltered.
The RDSP is the standard shelter:
- Open an RDSP at any major Canadian bank after DTC approval
- Contribute the lump sum within the allowable window
- AISH treats the RDSP as exempt; the funds no longer count against your $100,000 limit
- Future grants and bonds also accumulate within the exempt RDSP
This is the single most powerful financial protection available to AISH recipients in 2026.
AISH vs DTC Comparison
| Feature | AISH | DTC |
|---|---|---|
| Government | Alberta | Federal (CRA) |
| Type | Monthly income support | Federal tax credit |
| Application | AISH office | Form T2201 to CRA |
| Asset test | Yes ($100,000 limit) | No |
| Income test | Yes | No |
For more on Alberta-specific DTC rates, see our Alberta DTC guide. For the federal application process, see the how to apply guide or the official CRA Disability Tax Credit page.
Frequently Asked Questions
No. The two programs have different tests. AISH focuses on the impact of disability on earning capacity; DTC focuses on functional restriction in basic activities of daily living. You must apply for the DTC separately using Form T2201.
The annual non-refundable DTC credit itself has no impact on AISH because it does not produce direct cash income (it reduces tax owed). The retroactive lump sum is the issue; shelter it in an RDSP to avoid asset-limit problems.
Yes, once you have DTC approval. The RDSP and its accumulated funds are fully exempt from AISH asset calculations. This is the most valuable financial tool available to AISH recipients.
Alberta has indicated the CDB will be exempt from AISH income calculations, so the $200/month should stack on top of AISH. Confirm with your AISH worker for the latest treatment.