Are Medical Alert Systems Tax Deductible?

Understanding Medical Expense Deductions

Individuals may deduct certain medical and dental expenses paid for themselves, their spouse, and their dependents. These expenses become deductible only when they exceed a specific percentage of the taxpayer’s adjusted gross income (AGI). For most taxpayers, the threshold is 7.5% of AGI, meaning only the amount of qualifying medical expenses above this percentage can be included in itemized deductions. Taxpayers claim these deductions on Schedule A (Form 1040), Itemized Deductions.

To claim medical expense deductions, taxpayers must elect to itemize deductions rather than taking the standard deduction. Common examples of deductible medical expenses include payments for diagnosis, cure, mitigation, treatment, or prevention of disease. This can encompass fees paid to doctors, dentists, surgeons, and other medical practitioners. It also includes costs for prescription medicines, insulin, and payments for hospital care.

Qualifying as a Medical Alert System Expense

A medical alert system can qualify as a deductible medical expense if its primary purpose is for medical care. This means it must be intended to prevent or alleviate a physical or mental defect or illness, or for the diagnosis, cure, mitigation, treatment, or prevention of disease. The IRS emphasizes this “primary purpose” test to distinguish between medical expenses and general living expenses. For example, a system designed to detect falls and automatically alert emergency services for an individual with a medical condition would meet this criterion.

Establishing medical necessity often involves obtaining a recommendation or prescription from a physician. This documentation helps demonstrate the system is not merely for general safety or convenience, but is required due to a diagnosed medical condition. Without this clear link to medical care, the expense might be considered a personal expense and not deductible. The system must also be for the medical care of the taxpayer, their spouse, or a qualifying dependent.

What Costs Can Be Included

Once a medical alert system qualifies as a medical expense, several associated costs can be included in the deduction. The initial purchase price of the medical alert device or equipment itself is a deductible expense. This applies whether the device is a wearable pendant, a base unit, or other components that form the core of the alert system. Installation fees charged by the provider for setting up the system in the home are also includible.

Ongoing monitoring service fees, which provide continuous connectivity to an emergency response center, are also deductible. These monthly or annual fees are integral to the system’s function as a medical alert service. Necessary maintenance or repair costs directly related to ensuring the system’s medical function remains operational can be included. Costs for features not primarily medical, such as general home security functions, are not deductible.

How to Claim the Deduction

Taxpayers must track and total all qualifying medical expenses paid during the tax year. This includes the costs associated with the medical alert system, alongside other eligible medical expenses. The total amount is then entered on the appropriate line of Schedule A.

Maintaining thorough records is important for substantiating the deduction in case of an IRS inquiry. This documentation should include receipts for the purchase, installation, and recurring monitoring fees of the medical alert system. Doctor’s notes or prescriptions recommending the system for medical necessity should also be kept with tax records. These detailed records support the legitimacy of the claimed expenses and their medical purpose.