Are hearing aids tax deductible? If so, how does that affect the consumer? What other supplemental hearing devices may also be tax deductible?
These are some of the questions frequently asked by patients. Let us take a look at some interesting findings on this important matter.
Q: Are hearing aids tax deductible?
A: You might be pleasantly surprised to learn that the answer is Yes! According to IRS.GOV, hearing aids are in fact tax deductible on your annual taxes when itemizing deductions. Turbotax, a popular tax preparation software, also confirms on their website that hearing aids are tax deductible.
In fact, not only are the hearing aids themselves tax deductible, but the batteries that power the hearing aids are also! Charges for office visits, adjustments, repairs of hearing aids and amplified telephones may also be tax deductible.
You may also receive a tax deduction when you donate your old hearing aids to a qualified organization. Starkey Hearing Foundation’s hearing aid recycling program utilizes donated hearing aids on its international hearing missions. NewSound Hearing Aid Centers is a generous supporter of Starkey Hearing Foundation’s mission to provide better hearing throughout the world.
Q: How does this affect the consumer who is interested in purchasing a pair of hearing aids?
A: I’ve yet to meet a patient who isn’t interested in taking advantage of every tax deduction they can for their medical care. The benefits of hearing aids are vast and in many ways immeasurable when it comes to connecting someone back to their world. When patients discover the money they spend to correct their hearing loss is actually tax deductible, it makes the decision to purchase hearing aids even easier.
As with any situation regarding taxes, you should always consult a tax professional to make the most of your tax deductions. If you struggle with hearing loss, make an appointment with a hearing professional. You can get the help you need knowing that your hearing aid purchase is tax deductible.
Q: Is there any new tax information for this year?
As we get into tax season, we thought it was a great time to revisit the question of Are Hearing Aids Tax Deductible? We earlier determined that hearing aids are indeed tax deductible as a medical expense. To reiterate, hearing aid batteries, charges for office visits, adjustments, repairs of hearing aids and amplified telephones may also be tax deductible, depending on your tax situation.
First, in order to deduct your hearing aid expenses, you must itemize deductions on your tax return. Secondly, your total out-of-pocket medical expenses must be more than 10% of your adjusted gross income in order to claim them as a deduction. So, if your adjusted gross income is $40,000, your out-of-pocket medical expenses would need to be more than $4,000 in order to claim a tax deduction. Only the amount over the $4,000 would be claimed as the deduction.
As previously mentioned, it is also possible to receive a tax deduction by donating your old hearing aids to a qualified organization as a non-cash charitable donation. The deduction taken would be equal to the market value of the hearing aid(s) on the donation date, so generally speaking, the newer and better shape the hearing aids are in, the higher the deduction.
Q: Anything else on the horizon for taxes and hearing aids?
There is potential for even better tax-related news for those needing hearing aids in the future. There is a bi-partisan bill (S.315), the Hearing Aid Assistance Tax Credit Act, in the Senate that would provide a $500 tax credit for the purchase of a hearing aid, or $1,000 for purchasing two hearing aids. Purchasers taking the tax credit would be eligible again after five years. The bill is co-sponsored by Senators Dean Heller (R-NV) and Amy Klobuchar (D-MN), and has been read twice on the Senate floor and referred to the committee on finance.
Q: Are there other ways to pay for hearing aids?
A: Yes, you can read more about that on our page about Hearing Aids and Insurance.