You may save money if you itemize your deductions for high, uninsured medical and dental costs such as hearing aids. The IRS allows the following qualifying expenses:
- Payments for dentures, reading or prescription eyeglasses, contact lenses, hearing aids, and guide dogs for the blind or deaf
- Payments of fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners
- Payments for insulin and other prescription drugs
- Payments for transportation which are essential for your qualifying medical care expenses
- Payments for medical insurance premiums
How much can you deduct?
You may deduct the amount you paid to diagnose and treat your hearing loss, including hearing aids, as long as it exceeds 7.5% of your adjusted gross income.
- Example: If your adjusted gross income is $50,000, you can deduct the cost of any allowable medical expenses that exceed $3,750. Calculate the amount you can take on Schedule A (Form 1040 or 1040-SR).
You can also deduct transportation costs related to your hearing loss including:
- Taxi, bus, train, and ambulance ride fares.
- If you don't use public transport, you can deduct vehicle expenses incurred for medical trips from your taxes. These include gas, oil, mileage, tolls, and parking fees, but only those directly related to medical expenses.
- Keep receipts and records for proof of your expenses.
- If you didn’t get receipts for these medical deductions this year but think itemizing may be beneficial, keep track of your expenses next year.
Using pre-tax dollars
You can use pre-tax dollars for hearing health costs if you don't have enough deductions to itemize. Check with your employer to see if they offer health spending accounts (HSA), Flex Spending Accounts (FSA), Medical Savings Accounts, or Health Reimbursement Arrangements.
Can I pay for hearing aids with my pre-tax HSA funds? Yes. Hearing aids are an allowable medical expense for HSAs. Your HSA contribution may not cover the entire cost of your hearing aids, but it will help.
- If you’ve already purchased hearing aids, you can use your HSA funds to cover repair, maintenance, and battery costs.
