Can a Hot Tub Be a Medical Expense?

Medical expense deductions can offer valuable tax relief for individuals facing significant healthcare costs. Many are familiar with deducting common expenses like doctor visits and prescription medications. However, questions arise about less common items, such as whether a hot tub can be a deductible medical expense. Under specific conditions, the cost of a hot tub, like other home improvements, may qualify for this deduction.

Qualifying a Hot Tub as a Medical Expense

For a hot tub to be considered a medical expense, its primary purpose must be medical care for you, your spouse, or a dependent, used to alleviate or prevent a specific physical or mental illness, not merely for general health improvement or recreation. The Internal Revenue Service (IRS) defines medical care expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any part or function of the body. Therefore, a general desire for relaxation or fitness benefits would not meet this strict criterion.

A physician’s clear recommendation or prescription is required to substantiate the medical necessity of the hot tub. This recommendation should detail the specific medical condition the hot tub is intended to treat. Without this medical directive, the IRS would likely view the purchase as a personal expense. The hot tub must be used primarily for the prescribed medical purpose, even if it offers incidental recreational benefits.

Conditions that might qualify for hot tub therapy include arthritis, fibromyalgia, chronic back pain, or certain injuries, where hydrotherapy is a recognized treatment. The expense must directly relate to a medical condition and not just be generally beneficial.

Necessary Documentation

Thorough documentation is needed to support any claim for a medical expense deduction, especially for significant capital expenditures like a hot tub. You must obtain a written prescription or a letter of medical necessity from a licensed physician. This document should clearly state the medical condition requiring the hot tub.

Detailed receipts for the hot tub purchase, including the base price, any sales tax, and delivery charges, are also necessary. Keep records of all installation costs, such as plumbing, electrical work, and any structural modifications made to your home to accommodate the hot tub. Maintain these records, as they will be required to substantiate your claim if questioned by tax authorities.

Calculating the Deductible Amount

Deducting a capital expense like a hot tub as a medical expense follows a specific rule for home improvements. You can include the cost of special equipment installed in a home or improvements if their main purpose is medical care. However, if the improvement increases the value of your property, only the amount by which the cost of the improvement exceeds the increase in the home’s value can be included as a medical expense.

For example, if a hot tub costs $10,000 to purchase and install, but it increases your home’s value by $2,000, only $8,000 of the cost would be considered a medical expense. If the improvement does not increase the value of your property, the entire cost can be included. Determining the actual increase in home value is best assessed through a professional appraisal.

Beyond the initial purchase and installation, ongoing costs for the operation and upkeep of the hot tub can also be deductible. This includes expenses such as electricity, chemicals, and repairs, provided the hot tub continues to be used primarily for medical care. These maintenance costs qualify as medical expenses even if the original cost of the hot tub was only partly or not at all deductible due to increasing the home’s value.

Claiming the Deduction

To claim a medical expense deduction, you must itemize your deductions on Schedule A (Form 1040) of your federal income tax return. You can only deduct the amount of your total medical and dental expenses that exceeds 7.5% of your Adjusted Gross Income (AGI). For instance, if your AGI is $70,000, you can only deduct the portion of your medical expenses that is greater than $5,250 (7.5% of $70,000).

You would report your total qualified medical expenses on the appropriate line of Schedule A. If your total itemized deductions, including medical expenses, exceed the standard deduction for your filing status, itemizing may reduce your taxable income. Maintain all supporting documentation, such as physician’s prescriptions, purchase receipts, and appraisal reports, in your records in case of an inquiry from the tax authorities.