Vol. 4, No. 2, March/April 1996	Previous Issues Subscribe to AT Messenger Download PDF Viewer
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Tax Deductions for People with Disabilities

It's that time of year again. The time when our hearts and minds turn to taxes...or better yet, deductions. Did you know that many medical and dental costs are deductible?

You can only deduct the amount of medical and dental expenses that is more than 7.5% of your adjusted gross income that insurance does not reimburse. Adjusted gross income is salary plus other income (i.e., alimony, Social Security benefits) minus certain deductions such as IRAs and alimony paid.

This means that if your adjusted gross income is $20,000, then 7.5% would be $1,500. If your medical expenses after insurance were $5,000, you could deduct $3,500 in expenses, the difference between the 7.5% limit and what the taxpayer spent.

Of course, this is the IRS. There are a few rules to follow before considering these deductions. You must figure your deductions using Schedule A, Form 1040. Medical expenses that an insurance company or other sources paid do not count. However, you can claim the amount you paid if the insurance company did not pay 100% of the item or procedure. This applies whether they made the payments directly to you, to the patient, or to the service provider.

The list below highlights eligible deductible expenses:

• Ambulance service
• Braille books and magazines
• Capital expenses including:
  • ramps
  • widening doorways
  • modifying hallways
  • grab bars
  • lowering kitchen cabinets
  • lifts
  • modifying door handles
• Modifications to cars/vans
• Crutches
• Diapers (prescribed)
• Glasses and contacts
• Guide dogs (and their care)
• Hearing aids and batteries
• Hospital services
• Health insurance premiums
• Tuition to special schools
• Prescription medicines
• Nursing home services
• Prosthesis
• Special phones
• Closed captioners
• Therapy
• Wheelchairs

These are just some items that are deductible medical expenses. Be aware that unless your itemized deductions, including those for medical expenses, are more than the standard deduction ($3,900 for single, $6,550 for couples filing jointly, $5,750 for head of household and $3,275 for married filing separately) it may not be worth the time and energy to itemize. Check out IRS Publication 502 "Medical and Dental Expenses" for a complete listing of deductible expenses.