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Are Hearing Aids Tax-Deductible?
Hearing aids are usually tax-deductible as a qualifying medical expense when itemized higher than 7.5% of your adjusted gross income (AGI). Just be sure to submit all proper documentation to the Internal Revenue Service (IRS).
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At a glance:
- The cost of hearing aids falls under IRS Publication 502’s list of deductible medical expenses, allowing you to deduct part or all of your out-of-pocket expenses when filing taxes.
- To qualify for the medical expense deduction, you’ll need to prove that hearing aids are medically necessary for your hearing loss and provide receipts for all related expenses. Then, you can list them as an itemized medical care expense on Schedule A (Form 1040).
- If your hearing care doesn’t qualify for tax deductions, you can also seek financial assistance through Medicare Advantage (Part C), Medicaid, Veterans Administration (VA) benefits, or local nonprofits.
Better hearing can come at the cost of $6,500 per pair of hearing aids, but did you know that you can often deduct that out-of-pocket expense on your taxes? For seniors without access to traditional healthcare options, tax deductions serve as a key way to address their hearing health while recouping lost funds.
In this blog, we’ll deep dive into how guides like IRS Publication 502 allow you to use your hearing aid prescription to either lower the amount of tax you owe or increase your tax refund. Read on to learn how lowering your taxable income makes it easier to live with medical conditions.
What Are IRS Medical Expense Tax Benefits?
For US seniors who have gone to the audiologist for a hearing test and received a formal hearing aid prescription, you can file an itemized deduction for the cost of the new device. More specifically, hearing aids are classified as a qualified medical expense, making them easier to file for than home improvements like stair lifts or walk-in tubs.
However, even with documented hearing loss, the IRS still has specific eligibility requirements. You’ll need to submit documentation from a licensed audiologist or other medical practitioner that proves your hearing aids are medically necessary.
Before you submit your Schedule A (Form 1040), you can check whether your hearing aids and related expenses are eligible on the IRS website. Some examples of deductible medical expenses include:
- Hearing aids and cochlear implants
- Hearing aid batteries, maintenance, and repairs
- Audiologist fees and hearing evaluations
- Health insurance premiums
- Prescription drugs
- Eyeglasses and some dental expenses
- Other communication aids and assistive listening devices
Are Hearing Aids Tax Deductible Under IRS Publication 502?
As the tax year comes to a close, hearing aids are usually deductible under IRS Publication 502 as a qualified medical expense. However, approval is on a case-by-case basis, and you will likely only be eligible if:
- The primary purpose of the hearing aids is to treat your or a senior spouse’s/dependent’s diagnosed hearing loss or tinnitus.
- You have documentation from a licensed medical professional confirming that the hearing aids are medically necessary.
- The total medical expense for the hearing aids exceeds 7.5% of your Adjusted Gross Income(AGI).
How Much Can I Deduct For Hearing Aids?
When it comes to paying for hearing aids, the IRS allows you to deduct more than just the initial cost of the pair. Almost anything related to the device, including fittings, batteries, and maintenance, are all deductible expense.
Hearing aids also don’t substantially increase your personal assets or property value, allowing you to deduct their full cost so long as everything exceeds 7.5% of your AGI. This is important to note because certain hearing-related home modifications (Assistive listening systems, amplified alerting devices, etc.) designed for in-home care are categorized differently. They add value to your property, which means you must subtract that increase in value from the total installation cost to determine your qualified deductible amount.
How Do I Claim Hearing Aids On My Taxes: Step By Step
Typically, the best way to get the most out of your hearing aid tax deduction is to work with a trusted tax professional, but you are also allowed to submit all the forms yourself. Here is a simple, step-by-step guide for taxpayers:
- Gather documentation: Whether you have a prescription or over-the-counter (OTC) hearing aids, the first step is to compile any related receipts or invoices. This can include purchase receipts, audiologist consultation fees, fitting and adjustment costs, battery and accessory purchases, and any repair or maintenance invoices from throughout the tax year.
- Itemize medical expenses on Schedule A (Form 1040): It’s important to use this specific form instead of a standard deduction to report qualified medical expenses, like hearing aids.
- Apply the 7.5% AGI threshold: AGI is your total income (wages, dividends, capital gains) minus specific deductions. Apply the 7.5% rule to your expenses to determine if they’re deductible under your current income. Example: with a $50,000 AGI, only hearing aid expenses over $3,750 are deductible.
- Complete Schedule A: Once you complete your form, submit your tax return as usual. Most hearing aid expenses fall under qualified medical expenses, so you shouldn’t have to worry about home improvement rules.
- Keep thorough records: Don’t lose track of invoices, proof of payment, your audiologist’s prescription, warranties, and any health insurance correspondence—just in case you need to resubmit or face an IRS audit.
Health Insurance Plans & Other Ways To Lower Hearing Aid Costs
Hearing aids are usually tax-deductible, but if you need more immediate financial assistance, there are some healthcare plans and local programs that can help. These options include:
- Medicare Advantage plans vary depending on your location, but they typically cover hearing aid expenses that Original Medicare won’t. This includes not only the cost of the hearing aids, but also exams, fittings, and evaluations. Just keep in mind that plans usually require monthly payments.
- Medicaid includes joint state and federal programs that cover the cost of hearing aids and related expenses with no monthly fee, but eligibility depends on your location, income, and current health conditions or disabilities.
- Veterans Benefits provide free hearing aids, batteries, and repairs to eligible senior veterans, especially if your hearing loss is connected to your service.
- Disability Tax Credits (DTC) are a non-refundable tax credit that deaf and hard-of-hearing seniors can use to reduce the amount of tax they owe, rather than reduce the total amount of income subject to taxation.
- Local nonprofits like the Hearing Loss Association of America (HLAA) or your nearby Area Agency on Aging (AAA) help seniors access free or reduced-price hearing aids.
- Health Savings Accounts (HSAs) allow seniors to use pre-tax dollars for hearing aid purchases, fittings, batteries, and maintenance costs. Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses, such as hearing aids, are tax-free, making HSAs a smart way to offset out-of-pocket costs.
- Flexible Spending Accounts (FSAs) are similar to HSAs but strictly employer-sponsored and typically expire at the end of the plan year, so you’ll need to plan your hearing aid purchases accordingly.
The Bottom Line: Hearing Aids May Be Tax-Deductible Medical Expenses
Like dentures or eyeglasses, hearing aids are a qualifying medical expense that you can deduct on your annual tax returns. Simply gather all your receipts and submit the proper documentation under IRS Publication 502’s guidelines, and you should be able to reduce the amount you owe in taxes.
Not sure if you’re eligible? We recommend reaching out to a tax professional today to learn how you can get money back for certain medical expenses.
Frequently Asked Questions (FAQs) About Tax-Deductible Hearing Aids
Yes, in addition to the medical expense deduction under IRS Publication 502, deaf and hard-of-hearing seniors may qualify for the Disability Tax Credit (DTC). However, eligibility is determined on a case-by-case basis, so it’s worth consulting a tax professional or visiting the IRS website to confirm whether you qualify.
Qualified medical expenses like hearing aids are tax-deductible when:
• Their primary purpose is to treat hearing loss
• The total cost exceeds 7.5% of your Adjusted Gross Income (AGI)
• They don’t increase your home value (this is only a concern for assistive listening systems or amplified alerting devices)
You’ll mainly need any documents related to hearing aid purchases, audiologist consultation fees, fitting and adjustment costs, and any repair or maintenance invoices. A letter of medical necessity (LMN) from your audiologist can be helpful, but it isn’t required. You must submit this information on Schedule A (Form 1040) as part of your income tax returns.
Prescription hearing aids typically cost between $1,000 and $12,000 out-of-pocket, meaning that if you make less than $20,000 a year, you should qualify for a tax deduction. However, some OTC options can cost as little as $100, making it less likely that they’ll be deductible. Consider the best hearing aid option for your situation, depending on whether you want to save upfront or take advantage of future tax benefits.
Yes, if you paid out of pocket for hearing aids, some HSA, FSA, or insurance plans offer reimbursements. Contact your plan provider directly to confirm the reimbursement process and any documentation required.
If your hearing aids aren’t tax-deductible, you may have options for financial assistance. Healthcare options like Medicare Advantage, Medicaid, and some Veterans Benefits can help. Local nonprofits are also great when you don’t have access to these programs.
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