Ergonomic Medical Tax Deductions

Tax Deductions for Ergonomic Equipment and Improvements

There is a lot you can do to improve the ergonomics of you humble abode. And some of those improvements might be helpful once tax time comes around as well.

Many people do not realize that the ergonomic equipment and home improvements that you purchase at the urging of your doctor to overcome a repetitive stress injury or other disability can be tax deductible. The IRS publishes a document each year, IRS Publication 502, to aid people in figuring out what expenses can be claimed as medical expenses on your taxes.

The terms used in the document for equipment installed in the home or home improvements is “Capital Expenses”. According to the IRS, "You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent."

Examples of such improvements listed in the document are:

• Constructing 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, support bars, or other modifications to bathrooms
  
• 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
  
• Adding handrails or grab bars anywhere
  
• Modifying hardware on doors
  
• Modifying areas in front of entrance and exit doorways
  
• Grading the ground to provide access to the residence
  

There is a little bit of math involved if the modification to the home results in an increase in value of the home. The IRS states that most do not, but some, like elevators, do result in a higher home appraisal value. The amount of the expense that is eligible to be claimed is then reduced by any added value to the home.

If the tax payer is a renter and their landlord did not provide a reduction in rent or pay for the cost, then the total amount is deductible. It is always important to consult a tax professional with questions concerning your specific situation. The IRS has a tax question hot-line to help as well: 1-800-829-1040.

If you are planning on taking this deduction on a future project, make sure to maintain very clear records of expenses paid and keep all receipts and invoices. These are required to be kept on file in the case of a tax audit.

As you can see, many ergonomic improvements you might make can be tax deductible. Whether they are made for medical or health reasons or to assist the elderly or disabled, the ergonomic improvements can be beneficial in more than one way.