It’s that time of year, where many of us are wading our way through tax forms. As the April 15th tax deadline grows closer, you may be pulling together the final details including receipts for your deductions. But are you potentially missing an important tax deduction? If you wear hearing aids, you could be.
Hearing aids are tax deductible if you itemize your medical deductions on your federal income taxes. Given that hearing aids are not cheap, this can be a great way to save yourself money on this life-changing purchase. We’ve put together a guide to show you how to save money on taxes with hearing aids.
Itemizing Medical Expenses
Before you deduct the cost of your hearing aids on your taxes, you must first determine if you plan to itemize your medical expenses for the year. If in 2018 your total out-of-pocket healthcare expenses exceeded 7.5% of your adjusted gross income (AGI), any expenditures above 7.5% can be itemized on your tax return. If, for example, you’ve had a number of large healthcare expenses, itemizing these expenses will increase your tax deduction. Medical expenses could include:
Note: This threshold increases to 10% for the 2019 tax year. We recommend speaking to a tax adviser to determine if itemizing your medical expenses makes sense for your tax returns.
Hearing Aid Deductions
If you have decided to itemize medical expenses, there are a number of hearing-related expenses that you can deduct as long as you still have the receipts:
When itemizing your hearing-related expenses:
Donate Your Hearing Aids
If you’re planning an upgrade of your hearing device, you may be considering donating your old hearing aids. These donations may also be eligible for a deduction if you donate through charities like the Lion’s Club’s HARP Program. The rate of deduction that you will be eligible for will depend on the value of the hearing aids at the time you donate them.
Further information on what counts as a medical expense can be found on the IRS website. See Can I Deduct My Medical and Dental Expenses? and further details on Medical and Dental Expenses.
We hope this guide helps demonstrate how to save money on taxes with hearing aids. We recommend speaking to your financial or tax advisor to ensure you can maximize your savings this tax year. If you’ve already filed your 2018 taxes, begin keeping receipts and an itemized list of medical expenses in preparation for your 2019 taxes. If you’d like to book in a hearing assessment, please give us a call on 1-800-HEAR-IT-1 or book a consultation with us today.
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