Are Hearing Aids Tax Deductible?
03-06-2023
Approximately 28.8 million Americans could benefit from wearing hearing aids. Unfortunately, many people do not benefit due to the high cost of hearing aids. Most hearing aids have a high initial cost, raising a common question among many, especially parents: Are hearing aids tax deductible?
We’ve put this article together to highlight whether hearing aids are tax deductible and how much you can deduct.
Can You Deduct Hearing Aid Costs from Your Taxes?
Many medical expenses in the US are considered eligible for tax deductions by the federal government. You can deduct the hearing aid cost since hearing loss is a medical condition, and hearing aids are medical devices regulated by the Food and Drug Administration. People with large uninsured hearing aid expenses of up to $6000 benefit from deductible tax through itemizing.
Tax Credit Legislations: Are There Tax Credits for Hearing Aids?
The Hearing Aid Assistance Tax Credit Act was introduced to Congress but still needs approval. The tax credit bill was read twice to Congress before being referred to the Committee of Finance, where it failed. This bill suggested that all citizens with hearing aids qualify for a guaranteed $ 500 tax deduction. Unfortunately, this bill has never passed its committees despite being proposed by the Senate and Congress. So, the Hearing Aid Assistance Tax Credit Act has yet to be reintroduced. Therefore, there is no tax credit for hearing aids.
How Much Can You Deduct?
In most cases, hearing aids medical expenses are identified as itemized tax deductions. Itemizing is highly beneficial. Therefore, parents who wish to itemize their tax deductions should do so on Schedule A (Form 1040). However, you can only deduct the hearing aid expenses if the total exceeds 7.5% of your adjusted gross income. For instance: If you earn $60000, the hearing aid expenses can be deducted if the total exceeds $4500.
The following are some of the tax-deductible related costs for hearing aids:
- Any transportation cost associated with your hearing loss
- Medical fees from diagnosis, consultation, in-patient care medications, and many more
- Hearing aid repair and maintenance
- Hearing aid batteries
- Accessories that amplify sound and the repair cost
- Installing alert systems in the homes that are specifically designed to assist those with hearing problems
Keeping a record of all the receipts for medical expenses associated with hearing aids is important if you are looking to take full advantage of these medical deductions each year.
Do People with Hearing Aids Qualify for The Disability Tax Credit or Earned Income Tax Credit?
There are two tax credits: the earned income tax credit and the disability tax credit, which benefit people with hearing aids. The disability tax credit applies to people 65 years and above and those who retire due to their disability and receive taxable disability income. Your hearing loss has to be severe, preventing you from working and earning a living to qualify for the disability tax credit. You might also need to produce a statement from a qualified healthcare provider.
The Internal Revenue Service establishes the Earned Income Tax Credit (EITC) regulations. You can qualify for EITC if you meet the basic rules such as:
- must be a US citizen
- have a valid social security number
- have earned adjusted gross income within certain limits.
The disability tax and EITC rules can be difficult to understand and interpret. Therefore, people with hearing aids should consider filing them carefully or request help from a tax professional to take full advantage of the tax credits.
Hearing Aids & Audiology Services in Laredo, TX
Are you looking for hearing aids or audiology services in Laredo, TX? Look no further than Oliveira Audiology & Hearing Center. We have the most reliable and professional audiologists offering accurate hearing evaluation services to provide quality hearing healthcare.
We also perform further assessments for your hearing needs, such as hearing aids and devices that meet your expectation, lifestyle, and preference. Contact Oliveira Audiology & Hearing Center for more information and schedule an appointment for audiology services.
Image credit: Sutthiphong Chandaeng