Are Medical Alert Systems Tax Deductible?

With the deadline to file federal income taxes for 2019 just around the corner, we find ourselves in the thick of tax season. If you haven’t prepared your taxes for the April 15th deadline, now is the time to do so.

Taxes can be a heavy burden, especially on seniors living on a fixed retirement income. Thankfully, there are various ways you can lessen that burden, including itemizing eligible deductions to lower your taxable income. For some, that may include the cost of a medical alert system.

If you have medical alert devices in your home, you may be able to write them off as a medical tax deduction. In this article, we’ll outline the qualifying conditions and help you determine whether or not you benefit from this handy tax deduction.

Itemizing Tax Deductions

A tax deduction is an amount that is subtracted from your taxable income to lower the amount you owe to the federal government. When you file your taxes, you can choose to claim either the standard deduction or itemized deductions.

The standard deduction is a fixed amount of $12,200 for single taxpayers or $24,400 for married taxpayers filing jointly or qualifying widows or widowers. By eliminating the need to rifle through your payment records and receipts, this is the quickest and simplest deduction.

Itemizing your deductions takes more time and work, but it may be worth it if you paid large sums that total more than the standard deduction. Some expenses you may be able to itemize include home sales, charitable donations, investment expenses, tax-deductible retirement plan contributions, and medical and dental expenses.

Medical tax deductions make itemizing deductions particularly interesting to seniors, who tend to spend more on health and safety. Note that seniors (people who are age 65 at the end of the tax year) can only deduct medical and dental expenses if they total at least 7.5% of their adjusted total income. For anyone under 65, the total must be at least 10%.

To claim a medical tax deduction, use IRS Form 1040, Schedule A.

What Counts As a Medical Tax Deduction?

A medical tax deduction is an eligible medical expense you paid during the tax year, regardless of when the service was provided.

Eligible medical expenses are those associated with the diagnosis, treatment, prevention, or cure of a physical or mental disability or illness. This may include the costs of medical equipment, supplies, and services, such as:

• Physician-prescribed medical equipment
• Out-of-pocket costs of prescription medications
• Out-of-pocket costs of physical or mental healthcare
• Health insurance premiums
• Special items like artificial limbs, hearing aids, and wheelchairs
• Home improvements for the purpose of medical care, such as installing grip bars

To view a full list of expenses that may qualify for a medical tax deduction, visit the website of the Internal Revenue Service (IRS).

How to Deduct Medical Alert Systems

As you browse the list of eligible medical tax deductions, you might notice that medical alert systems aren’t specifically mentioned. That doesn’t mean that you can’t still write them off.

Under the IRS guidelines, medical alert systems may qualify for a medical tax deduction under two expense categories: “qualified long-term care services” and “medical information plans.” Depending on the terms and conditions of your medical alert plan, you may be able to claim the cost of your MAS as either of these types of expenses. Here’s how:

Medical Alert Systems as a Qualified Long-Term Care Service

According to the IRS, a long-term care service is a necessary diagnostic, preventative, therapeutic, curing, treating, mitigating, or rehabilitative service, or a maintenance and personal care service. A medical alert system may be considered a qualified long-term care service if it meets these two conditions:

• A doctor deems it necessary, and
• It has been prescribed by a licensed health care professional.

To receive a medical tax deduction for your medical alert device, you must have received a prescription from your doctor to purchase it. If you have not yet purchased a medical alert system but are considering one, first request an assessment from your doctor. Should they decide a medical alert system is a requirement for your health, you can claim the cost on your Schedule A.

Medical Alert Systems as a Medical Information Plan

A medical information plan is a plan that keeps your medical information in a computer database. It supplies this information to attending medical professionals who request it.

When you subscribe to a medical alert system, you provide your medical information to the MAS provider. This information is stored in a database that operators can consult in case the medical alert device is triggered and emergency medical professionals require your medical information.

Medical alert systems are so much more than a medical information plan, but because they also provide this service, they may qualify as a medical tax deduction.

Should You Itemize Your Medical Alert System?

Now you know that it is possible to claim your MAS as a medical tax deduction. Whether or not you should is an entirely different question.

First, remember that only seniors with medical expenses greater than 7.5% of their adjusted income can claim medical tax deductions. If your only qualified medical expense is your medical alert system, the total expense may not be enough to itemize. Second, even if the amount is high enough, you should verify that the total amount of itemized deductions is greater than the standard deduction.

Not everyone will benefit from claiming medical tax deductions. So, before you do so, be sure to check with your accountant to determine whether or not it is a good idea.

If it turns out that it isn’t worth it to claim your medical alert system as a deduction of your federal income taxes, there are other ways you can make your medical alert system cost-effective. Certain individual states may cover medical alert systems under Medicare Part C, also called Medicare Advantage, while other states cover MAS under Medicaid and HSBC waivers.

Finally, shop around to find a budget-friendly MAS. Medical alert systems come in a wide range of plans and price points, some of which are more affordable than others. Browse our site to compare package prices of award-winning MAS like LifeStation and MobileHelp to see if there is a cost-effective medical alert system for you.