Medical Expense Deductions for Stairlifts
It’s hard to believe, but tax season is here! As you put together your documents, statements, and more, you may wonder if there are tax benefits for disability-related expenses. Equipment, including stairlifts, is expensive, but luckily, you can potentially recoup some of the expenses by deducting the cost of the items on your taxes. We’re here to help. Learn more from the 101 Mobility team about key factors determining whether a stairlift qualifies for a deduction under IRS guidelines. Read on to find quick and accessible answers.
Are Stairlifts Tax Deductible?
Consulting an accountant is always best practice, but to get started, here is a quick breakdown to help you understand how and why stairlifts can be tax deductible.
- Medical Expense Deduction: According to eFile, “The IRS allows you to deduct a certain amount of medical expenses if you itemize deductions. Qualified medical deductions are expenses you paid during the tax year for yourself, your spouse, or your dependents.” “Qualified Medical Deductions” refer to the costs associated with the “diagnosis, cure, mitigation, treatment, or prevention of any disease recognized by the medical community… and the costs for treatments affecting any area or function of the body” (eFile). This includes equipment, supplies, and diagnostic devices required for the above purposes.
But not all qualified expenses count for deduction purposes. According to the IRS, medical expenses are deductible if they exceed 7.5% of your Adjusted Gross Income (AGI).
- Who Qualifies for Medical Expense Deductions?: Medical equipment must be considered “medically necessary” to qualify for a deduction. You will need a written recommendation from your doctor to prove that certain equipment or home modifications are medically necessary. Without a written recommendation, you may not be able to receive itemized deductions for medical equipment—regardless of how necessary you may consider it to be.
- What Documentation Is Needed?: Saving any documentation, such as receipts, prescriptions, medical records, and tax forms, is essential for attempting to receive a tax deduction. If you don’t have any verification to support your expenses, you cannot deduct any accrued costs.
IRS Tax Deductions for Mobility Equipment
If you’re still wondering, “Are home mobility aids tax deductible?” you’re not alone. Home improvements (or capital expenses) that may be deducted per the IRS are as follows:
- Entrance or exit ramps for your home
- Widening doorways at entrances or exits to your home
- Widening or otherwise modifying hallways and interior doorways
- Installing railings and grab bars, either in bathrooms or other areas of the home
- Lowering or modifying kitchen cabinets and equipment
- Moving or modifying electrical outlets and fixtures
- Installing porch lifts and other forms of lifts
- Modifying fire alarms, smoke detectors, and other warning systems
- Modifying stairways (including the addition of stairlifts)
- Modifying hardware on doors
- Modifying areas in front of the entrance and exit doorways
- Grading the ground to provide access to the residence
The only reasonable costs to accommodate ADA-compliant home modifications for a disabled condition are considered medical care. Additional costs for personal motives, such as architectural or aesthetic reasons, aren’t medical expenses.
Is a Stairlift Tax Exempt? Understanding Healthcare-Related Tax Write-Offs
Home modifications and tax exemptions can be on a case-by-case basis. Learn more about what opportunities are available to you and why.
- Sales Tax Exemptions by State: Each state has its own exemptions for medical equipment. Be sure to understand your specific state of residence’s guidelines and what sales tax exemptions are available.
- Medicare & Medicaid Implications: If the stairlift is deemed as “medically necessary,” then it is possible to receive tax exemptions. These expenses would be classified as capital expenses and include improvements meant to accommodate a home to your needs. It’s always recommended to check irs.gov for the latest and your state’s guidelines.
How to Claim a Stairlift Tax Deduction
If you’re ready to start claiming your stairlift as a tax deduction, it’s essential to understand the various processes. Discover the options available to you that affect eligibility.
- Itemizing Deductions vs. Standard Deduction: A standard tax deduction is a fixed amount that reduces your taxed income. On the other hand, itemized deductions are made up of eligible expenses that lower your Adjusted Gross Income (AGI). When claiming a stairlift as a tax deduction, that would be classified as an itemized deduction. Before you choose which tax deduction route to follow, do some math first to see what makes the most sense.
- IRS Form 1040 & Schedule A: If you’ve decided that itemizing your deductions gives you a better tax break, complete Schedule A, part of the Form 1040 tax return. All your medical expenses will be inputted within this form, giving the IRS a clear view of all your deductions.
- Consulting a Tax Professional: Consulting with a tax professional never hurts. They can walk you through the forms you need to fill out and what tax credits and deductions can help you get a big refund.
Other Financial Assistance Options for Stairlifts
Apart from tax deductions, it is possible to receive financial assistance for medical equipment, including stairlifts. Learn more about what’s available:
- State and Local Grants: Depending on where you live, you may be eligible for state and local grants. For example, some states have modification grants through the Department of Housing and Urban Development and even offer state tax credits for home accessibility. Funding may be limited, but it’s worth knowing your options.
- Veterans Benefits & HISA Grants: It pays to serve. If you’re a U.S. veteran, you can apply for a grant through Veterans Affairs (VA). The program offers funding for stairlifts that other programs, including Medicare, may not provide. The Home Improvements/Structural Alterations (HISA) benefit works in tandem with the VA to help offer medically necessary improvements and structural alterations to help make a veteran’s home more accessible.
- Private Insurance & Long-Term Care Policies: Depending on your health insurance or long-term care coverage, mobility equipment may be covered. Review your policy documents regarding insurance reimbursement for stairlifts or check in with a provider for further information.
How 101 Mobility Helps You Find Affordable Stairlift Solutions
101 Mobility wants you to make your home or business accessible. We also want you to receive the tax deductions or funding you deserve to stay free of hefty costs and focus on what matters most—staying mobile and independent.
Contact our team today to learn more about what we can do for you. We’ll happily provide you with free consultations and help you explore your options. In the meantime, don’t hesitate to learn more about our wide range of stairlift options. Your needs are our top priority!
