Can you deduct the cost of your patient lift or vehicle lift from your
U.S. taxes? The answer is “it depends.” The IRS allows for deducting certain
medical expenses from your income tax but those deductions come with certain
conditions. If you, a spouse or a dependent has purchased a vehicle lift or patient lift device, you might be able to reduce
the income tax you owe by deducting the cost of the device.
It’s important
to remember that this article is not intended to be professional tax advice and
we encourage you to either contact the IRS or your tax professional to confirm
what you may or may not be eligible for.
Durable Medical Equipment (DME)
The IRS defines
DME as “certain medical equipment that is ordered by a doctor for use in the
home to alleviate or prevent a physical or mental defect or illness.” So the
first thing you are going to need is a letter from a physician stating the
medical necessity for the lift. Once you have that in hand there are a few
other qualifiers to consider:
- You can only deduct the cost of durable medical
equipment that you purchased in the tax reporting year. This might become
important if you are considering purchasing a patient lift or auto lift near
the end of a calendar year.
- You can only deduct that amount that you
actually paid. If the device was purchased by someone else or by an
insurance company, you won’t be able to deduct the cost. However, if you
paid a “deductible” or “co-pay” as a part of an insurance claim for the
device, that amount is eligible for deduction.
- Aside from lifts, other examples of DME items include crutches, service animals such as
a guide dog, diagnostic services, hearing aids, telephones for the hearing
impaired and wigs.
For a complete
list of what is and is not deductible, including health related home
improvements like stair lifts and alterations to accommodate a wheelchair,
visit the IRS site.
One last
consideration and it’s a big one.
In order to
deduct your medical expenses (lifts, medication, treatments, hospitalization
etc.) you have to itemize your deductions. If you own a home you probably
already do that as interest on mortgages and property taxes are large “itemized
deductions.”
However if you
don’t routinely itemize, you have to determine if your medical expenses are
greater than your “standard deduction” to determine how you will file. There is
also another limitation on how much you can deduct. The IRS will allow you to
deduct only that amount that exceeds 7.5% of your Adjusted Gross Income. So if
you have an AGI of $50,000 you’ll only be allowed to deduct medical expenses in
excess of $3750.
We hope this has
helped you with this issue. At Body Up Patient
Lift we know how
important mobility is to the quality of life. We know you want to provide your
loved one with the best care possible. We know how important mobility is to a
sense of self value and self-confidence. If you have any questions regarding
our products, how they are used or pricing please do not hesitate to contact us
today!