Are Hearing Aids Tax Deductible?

Hearing aid tax deduction requirements

The IRS lists hearing aids, batteries, repairs and maintenance as qualified medical expenses, though not everyone is eligible to deduct them. To qualify, you need to itemize on Schedule A rather than take the standard deduction. Only the amount exceeding 7.5% of your adjusted gross income (AGI) is deductible.

If you have hearing aid coverage through insurance, your plan may reimburse you a portion of your hearing aid costs. Only unreimbursed costs count toward this deduction. If you’re enrolled, check whether Medicare covers hearing aids before calculating your unreimbursed costs.

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Hearing aid expenses the IRS allows

The IRS allows hearing-related costs that qualify as medical care, including devices, professional services and upkeep. Because of this, you could potentially deduct more than just your hearing aids.

Eligible expenses may include:

• Hearing aids
• Batteries
• Repairs and maintenance
• Replacement parts necessary for operation
• Audiologist visits
• Hearing exams and diagnostic testing
• Hearing aid fitting and adjustment services
• Cochlear implants and other medically necessary hearing devices
• Assistive communication equipment for people who are deaf or hard of hearing
• Physician-prescribed hearing treatments or therapy

Any costs tied to evaluating hearing loss, fitting or adjusting a device and keeping it working may count when they meet the IRS definition of medical care.

If you paid several hearing-related expenses during the year, track them alongside your other unreimbursed medical expenses so you can calculate your total at tax time.

Hearing aid deductions and the AGI threshold

Your medical expense deduction only applies to costs above 7.5% of your AGI, which appears on line 11 of Form 1040. This means you first calculate 7.5% of your AGI, then compare that amount with your total eligible medical expenses.

You can combine hearing aid costs with other eligible unreimbursed medical expenses, such as prescriptions, surgeries, doctor visits and dental care. Once the total passes your 7.5% threshold, only the amount above that cutoff is deductible.

How to claim hearing aids on taxes

To claim hearing aid expenses, you need to itemize deductions on Schedule A (Form 1040) rather than take the standard deduction.

Keep records throughout the year so you can total your eligible medical costs and support the deduction should the IRS ever come knocking.

Here’s how to calculate and claim a federal income tax deduction for qualified medical and dental expenses, including hearing aids:

1. Save receipts, invoices and proof of payment for hearing aids and related expenses.
2. Track all eligible unreimbursed medical expenses for the tax year.
3. Find your AGI on Form 1040.
4. Calculate 7.5% of your AGI.
5. Compare that threshold with your total eligible medical expenses.
6. Enter the qualifying amount in the medical expense section of Schedule A.
7. Keep supporting records with your tax files rather than sending them with your return, unless requested.

A tax professional should be able to help you figure out your deductions if you’re juggling insurance reimbursements, multiple taxpayers or other deductions.

Can you deduct hearing aids for a spouse or dependent?

You might be able to deduct hearing aid expenses you paid for a spouse or a dependent. IRS Publication 502 allows you to include these expenses for yourself, your spouse or a dependent, provided the person met the relationship requirements when the care was received or when you paid the bill.

The same deduction rules apply. The expense must remain unreimbursed; you must itemize rather than claim the standard deduction; and your combined eligible medical expenses must be above 7.5% of your AGI.

When hearing aid costs can’t be deducted

Unfortunately, not every dollar you spend on health care is tax deductible. You can’t deduct expenses reimbursed by another source, including hearing aid costs covered by Medicaid. You also can’t claim expenses paid with tax-free health savings account (HSA) funds.

Because insurance coverage for hearing aids varies by policy, keep records showing what you paid and what your insurer covered. Also note whether you paid with HSA or flexible spending account (FSA) funds. This will help you separate deductible costs from expenses for which you already received a tax benefit.

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