Extra expenses associated with a disability could be tax deductible.
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Living with a disability requires making adjustments to your environment. From specialized equipment to additional medical care, coping with a disability can get expensive. The IRS recognizes this and lets you deduct from your income taxes some of the extra costs associated with being disabled. To take advantage of any of these deductions, you must itemize on Schedule A.
If you modify your home to widen doorways, install a wheelchair ramp, add a handi-cap accessible bathroom, or otherwise make changes to accommodate your disability, you can deduct part of the cost
of these improvements from your taxes. The IRS classifies such improvements under medical deductions, so they’re subject to the 7.5 percent limit, meaning you can only deduct the amount by which they exceed 7.5 percent of your adjusted gross income. Even then, you can’t deduct the entire amount, but only the amount in excess of the value the changes add to your home. So if you install a second bathroom on your home’s ground floor, you can only deduct the cost over and above the additional value the bathroom adds to your home. You might need a professional appraisal to determine how much value, if any, handicap accommodations add to your home.
Other Medical Expenses