The rules for the Earned Income Tax Credit ( EITC ) have been firmly established by the IRS. The disability tax credit applies to individuals that are “at least 65 years old, retired because of your disability and get taxable disability income.” Your hearing loss (or other disability) will need to be severe enough that it “bars you from gainful employment.” Because of this, you will need a statement from a qualified physician. Two specific tax credits -the disability tax credit and the earned income tax credit-can both potentially affect individuals with hearing aids. Do people with hearing aids qualify for the disability tax credit or earned income tax credit? If you are unsure which tax deductions you currently qualify for, consider meeting with an accountant or other tax professional. If, after adding up all possible personal tax deductions-medical expenses, personal business expenses, charitable donations, etc.-the sum of the deductions you qualify for is greater than the standard deduction, then it will be in your best interest to itemize expenses (including hearing aids). This means that, even without itemizing all deductible expenses, you will be able to essentially write-off the corresponding taxable income. For married partners filing together, the standard deduction is $24,800 (or $12,400 each). In 2020, the standard tax deduction for individuals is $12,400. Other “non-traditional” medical expenses, such as eyeglasses and basic prescriptions, can also be deducted. When calculating your total medical expenses, be sure to include everything that is medical-related, including batteries, repairs, supplementary devices, and insurance premiums. Medical expenses can be claimed as an itemized tax deduction if the expenses collectively equal more than 7.5 percent of your adjusted gross income ( AGI ). However, there are some stipulations you will need to pay attention to. In the eyes of the federal government, virtually all personal medical expenses-including hearing aids-can potentially qualify for a tax deduction. Hearing aids, cochlear implants, sound therapy sessions (with a licensed audiologist), and hearing tests can all be loosely categorized as medical expenses.Ĭan medical expenses, such as hearing aids, be used as tax deductions? This classification holds true whether your hearing loss is conductive, sensorineural, mixed, or any other type of hearing loss. Though hearing loss is not classified as a disease, it is a recognized medical condition that affects about 35 million Americans. Generally speaking, any expense that is used to treat a medical condition can be considered a medical expense. Are hearing aids considered a medical expense? In this article, we will discuss everything you need to know about using hearing aids as a tax deduction. However, as you will find with many tax-related subjects, the deduction status of hearing aids can also be rather complicated. Deducting the cost of hearing aids from your taxable income can lower the amount you pay for hearing aids by as much as 35 percent. In many cases, hearing aids are tax-deductible. While this puts hearing aids beyond many people’s typical monthly budget, there are actually quite a few ways that these costs can be controlled. Hearing aids, on average, cost between about $1,000 and $4,000 (according to a report from Consumer Affairs ). One of the most common reasons that people don’t purchase hearing aids is they are assumed to be expensive. Currently, there are about 25 million people who could benefit from purchasing hearing aids but, for various reasons, have not yet been willing or able to. Only about 30 percent of people with hearing loss are receiving adequate care. Hearing aids are remarkably useful for treating hearing loss, especially since there is no cure for sensorineural hearing loss. Currently, about 10 million Americans have hearing aids or a related hearing device.
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