Nobody likes tax season—except maybe the Tax Man himself. But what if we told you there’s a way to keep more of your hard-earned money and hear better at the same time? That’s right—your over-the-counter (OTC) hearing aids may be tax-deductible, and if you’re not claiming this deduction, you’re leaving money on the table!
If you or a loved one purchased hearing aids this year, here’s how to beat the Tax Man at his own game and save big on your tax bill.
How to Calculate Adjusted Gross Income (AGI)
Your Adjusted Gross Income (AGI) is the starting point for determining whether your medical expenses—including OTC hearing aids—exceed the 7.5% threshold for tax deductions. To calculate your AGI, use this simple formula:
Total Income − Adjustments = Adjusted Gross Income (AGI)
Here’s a simple table template to help you calculate your AGI:
| Income Source | Amount ($) |
|---|---|
|
Wages/Salaries
|
$XXX.XX |
|
Social Security Income
|
+ $XXX.XX |
|
Pension/Retirement
|
+ $XXX.XX |
|
Investment Income
|
+ $XXX.XX |
|
Other Income
|
+ $XXX.XX |
|
Total Income
|
= $XXX.XX |
|
Adjustments (e.g., IRA contributions, educator expenses)
|
− $XXX.XX |
|
Adjusted Gross Income (AGI)
|
= $XXX.XX |
Once you calculate your AGI, you can determine how much of your medical expenses can be deducted.
Important Tax Note: This content is not official tax advice, please ask a qualified tax adviser to help you out when filing taxes.
Can Seniors Deduct Hearing Aids on Their Taxes?
Yes! The IRS considers hearing aids a qualified medical expense, which means you can potentially deduct them from your taxable income. But there’s a catch: you can only deduct medical expenses if they exceed 7.5% of your adjusted gross income (AGI).
Here’s how it works:
-
If your AGI is $40,000, your first $3,000 in medical expenses isn’t deductible.
-
But if your medical costs—including OTC hearing aids—exceed $3,000, the extra amount can be deducted.
For many seniors with ongoing medical expenses, reaching this threshold is easier than you think.
How to Track and Deduct Your Medical Expenses
The key to maximizing your tax savings is tracking all qualifying medical expenses throughout the year. Here’s how you can stay organized and ensure you claim every deduction you deserve.
Common Deductible Medical Expenses
Below are some of the most commonly deductible medical expenses seniors can claim:
| Expense Type | Examples |
|---|---|
| Hearing Aids & Accessories |
OTC hearing aids, extra chargers, batteries
|
| Medical Equipment |
CPAP machines, wheelchairs, canes, walkers
|
| Medications & Prescriptions |
Insulin, blood pressure medication, etc.
|
| Medical Alert Systems |
Fall detection devices, emergency response systems
|
| Dental & Vision Costs |
Dentures, eyeglasses, contact lenses
|
| Medical Procedures & Treatments |
Surgeries, physical therapy, diagnostic tests
|
| Mileage for Medical Travel |
Driving to doctor’s appointments, pharmacies
|
How to Compile Your Medical Expenses
-
Save Your Receipts – Keep both digital and paper copies of your medical purchases. Store them in an app or file them in an easy-to-access folder.
-
Log Your Expenses Monthly – Don’t wait until tax time! Keep a simple spreadsheet or use an expense tracker app.
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Use a Dedicated Credit Card – If possible, using one credit card for medical expenses can make tracking easier.
-
Work with a Tax Professional – If you’re unsure whether an expense qualifies, a tax preparer can help you maximize deductions.
Here’s a simple table template to help you track your medical expenses:
| Date | Expense Type | Provider/Store | Amount ($) | Payment Method |
|---|---|---|---|---|
|
MM/DD/YYYY
|
Hearing Aid Purchase
|
MDHearing
|
$XXX.XX
|
Credit Card
|
|
MM/DD/YYYY
|
Prescription Medication
|
Local Pharmacy
|
$XXX.XX
|
HSA/FSA
|
|
MM/DD/YYYY
|
Medical Appointment
|
Doctor's Office
|
$XXX.XX
|
Check
|
|
MM/DD/YYYY
|
CPAP Machine Purchase
|
Medical Supplier
|
$XXX.XX
|
Credit Card
|
|
MM/DD/YYYY
|
Dental Procedure
|
Dentist
|
$XXX.XX
|
Insurance
|
|
MM/DD/YYYY
|
Medical Mileage (IRS Rate)
|
Various
|
(Track Miles)
|
-
|
How to Claim Your OTC Hearing Aid Deduction
-
Keep Your Receipts – Save all invoices, whether you bought hearing aids online or in-store. Digital and paper receipts both work.
-
Track Medical Expenses – If your total medical costs exceed 7.5% of your AGI, you qualify for a deduction.
-
Itemize Your Deductions – You’ll need to file Schedule A (Form 1040) instead of taking the standard deduction.
-
Consult a Tax Pro – A quick chat with an accountant can maximize your savings and ensure you’re getting every deduction you deserve.
Track Your Medical Mileage and Save Even More
Did you know you can deduct mileage for medical-related travel? Whether you're driving to a hearing consultation, the pharmacy, or a medical appointment, those miles add up and can be written off.
Pro Tip: Use a free mileage tracking app like Shoeboxed to log your medical trips. Shoeboxed can also store digital and paper receipts, making it easy to keep track of expenses when tax season rolls around. You can claim $0.21 per mile driven to and from medical visits according to the 2024 IRS/Federal mileage rates. If you drive for work or charity, you can track and claim that mileage as well!
Why the Tax Man Hopes You Ignore This Hack
Let’s be real—the IRS isn’t advertising this deduction because they’d rather keep your money. But knowing your tax benefits means you can put hundreds of dollars back in your pocket where it belongs.
So, if you’ve purchased affordable, high-quality OTC hearing aids this year, don’t forget to claim your rightful deduction. After all, you paid for better hearing—why pay extra to the Tax Man, too?
Hear Better. Pay Less. Save More.
At MDHearing, we believe great hearing shouldn’t break the bank—and neither should your taxes. If you’re looking for FDA-registered OTC hearing aids that are both affordable and high-quality, we’ve got you covered.
Want to save even more? Shop now and make your next hearing aid purchase tax-deductible!
Explore Affordable OTC Hearing Aids