Since hearing aids are medical devices, they may qualify for tax deductions based on an individual’s income for a given tax year. Before making any tax filing decisions, please consult a professional tax preparer.
Medical deductions exist to aid taxpayers facing significant medical costs in a tax year. Historically, the threshold for claiming a medical deduction was applied for medical costs exceeding 10% of the adjusted gross income for the tax year. In December of 2017, the Tax Cuts and Jobs Acts (TCJA) was passed and lowered the medical deduction threshold from 10% to 7.5% for the 2017 and 2018 tax years. After tax year 2018, the threshold will return to 10% of adjusted gross income. As an example, if your 2017 adjusted gross income was $100,000, you may be eligible for medical deductions for medical costs that exceeded $7,500.
Below is a basic definition of medical expenses and a list of some of the accepted medical deductions from IRS.com:
Topic Number 502 – Medical and Dental Expenses
If you itemize your deductions for a taxable year on Form 1040, Schedule A, Itemized Deductions, you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.
Deductible medical expenses may include but aren’t limited to the following:
In addition to the hearing aids themselves, other expenses like hearing aid batteries, supplies, and maintenance may also qualify as medical deductions. To claim these deductions, commit to keeping track of your itemized medical costs during the tax year and keep all receipts for those expenditures.
Please, call our office if you need a list of your costs with us for the 2017 tax year.