As the filing deadline looms large, you may be gathering those final details, including receipts for your deductions. Did you purchase hearing aids last year? If so, you’re in luck! Hearing aids are tax deductible if you itemize your medical deductions on your federal income taxes. In fact, the savings includes hearing-related costs for you, your spouse and your dependents. As with most things related to taxes, there are some caveats. We’ve gathered some of the most relevant information for you. And if you’ve already filed, keep this in mind as you plan medical spending for 2018, so you’re ready next year.
Not sure if you can deduct your hearing aids? To start, you must decide if you will itemize your medical expenses or not. If you don’t itemize your deductions, then you can’t take advantage of this savings. However, if you have significant medical expenses, it might be worth it for you or your family to do so this year. For the next two years, if you spend more than 7.5% of your income on medical expenses1, you can deduct medical costs from your insurance. (Previously, the threshold had been 10%.) Some years, itemizing may make more sense than others. If you have invested in hearing aids and had other significant medical expenses, such as a hospital stay or surgery where you paid a portion of the cost, this may be the right year to deduct these expenses.
According to TurboTax2, the following hearing-related expenses can be deducted:
For many of us, doing your taxes can be confusing. If you are doing your own, here are a few tips:
Of course, we are not tax experts, and highly advise you to bring specific financial questions to your tax advisor or an accountant.
You may wonder what counts as a medical expense. Another great source for information is the IRS’s information page on medical and dental expenses.3 If you have a person in your household, such as a parent or child, who purchased hearing aids last year, you can only deduct these costs if you claim this person as a dependent on your taxes – even if you paid for the hearing aids.
If you are a first-time hearing aid wearer or you are looking to upgrade, remember to save your receipts, because before you know it, you’ll need them for next year’s filing. If you know you will have significant medical expenses coming soon, this might be a good year to spring for the latest technological advances. That way, Uncle Sam can pay you back next year. For more information on the latest in high-tech hearing aids, give us a call at (219) 576-6310.