deducting the cost of energy for Vest, air compressor, etc. from taxes

[LouLou]

Anyone done this?

Medically necessary costs prescribed by a physician. That means if your doctor told you to add a humidifier to your home's heating and air conditioning system to relieve your chronic breathing problems, the device (and additional electricity costs to operate it) could be at least partially deductible.

<a target=_blank class=ftalternatingbarlinklarge href="http://www.bankrate.com/brm/itax/tips/20010323a.asp?caret=14">http://www.bankrate.com/brm/it...20010323a.asp?caret=14</a>

 

[NoExcuses]

Some energy companies will give you a discount right off the bat. I know Southern California Edison will.

But in terms in writing off the cost on my taxes, I've done that as well. I know my parents did while I was a minor living with them as well.

 

[LouLou]

Anyone know how to compute the deduction?

 

[folione]

Calculating electricity usage is pretty straight-forward:

(Kw rating) x (Price per Kw) x (time used).

Kw rating is the kilowatts drawn by the appliance. Most smaller appliances are going to be stated in watts so you have to divide that number by 1,000 to get Kw.

Price per Kw is from your electric bill - what you're paying for 1 kilowatt-hour of electricity.

Time used is in hours. Keep in mind that not all appliances run all the time even if "on" - i.e. your fridge compressor is not running 24 hours a day even though it is plugged in.

 

[julie]

Have you visited the IRS website for some further information??? I just looked around breifly last night to see what I could find, but I'm not sure I looked long enough. I'll check out some more today and see what I can find.

Lauren, are you also keeping track of your medical expenses and food expenses??? I think you are, but my pregnancy brain is taking over and I can't really remember.....

 

[LouLou]

Folione,
Thanks for the formula. Have you deducted from taxes with this method? I can't seem to find info about it on the IRS website.

Julie,
I am tracking medical and food expense thanks to your spreadsheet and info that jump started my efforts!! I couldn't find anything about the energy deduction for medical equipment on the IRS website. Have you found anything? Also, you know how there's that 7.5% rule for medical deductions... I understand that the amount of med. expenses have to exceed 7.5% of our gross household income but here's my question. Let's say your medical expenses are 20% of the household income, do I claim all 20% or only 12.5% (the amount that exceeds 7.5%)?

Does anyone have info from the IRS on this? ...or am I wrong that this is a deduction?

 

[LouLou]

<div class="FTQUOTE"><begin quote><i>Originally posted by: <b>LouLou</b></i>

Does anyone have info from the IRS on this? ...or am I wrong that this is a deduction?</end quote></div>

-----------------
What I meant was does anyone have info from the IRS on deducting energy for medical device usage such as the Vest and air compressors for nebulizing?

 

[NoExcuses]

No info. I've always done it through - the past 20 years or so.

Call the IRS and ask them for info.

 

[LisaV]

Here's a link to the IRS site for info on medical expenses ( <a target=_blank class=ftalternatingbarlinklarge href="http://www.irs.gov/publications/p502/ar02.html#d0e1270">http://www.irs.gov/publications/p502/ar02.html#d0e1270</a> ).

You'll notice in one example they are talking about installing an elevator in your home because of mobility impairment and in this case they specifically say that you can deduct the cost of the electricity used to run it. (That means that my husband and I could deduct the cose of the proch lift he used and the electricity for it.)

This is also true for other medical equipment that uses electricity (like oxygen generator and Vest, etc). It's up to you to compute the amount of electricity used for each "treatment" then multiply that by the number of treatments over the tax year and then multiply that by the cost of electricity. The formula given before would help with that.

Also, don't forget that you can also deduct the cost of any transportation related to medical care - whether public transportation or car (IRS has a formula tor mileage) including parking (need parking receipts). For public transportation you need receipts (if you have them) or a "log" that lists the dates and transportation used and either cost (for public) or mileage (for car).

 

[folione]

When I posted the formula, you asked if I took the energy use as a deduction. No because we've not hit the 7.5% threshhold. Note, however, that there is a proposal in Congress to change the rules making it easier to deduct medical costs. I have no idea if it stands a chance of passing any time soon but it's a good idea to re-read the IRS rules every year to not miss out on any changes.

 

[julie]

Lauren, you would add up ALL of your medical expenses and there is a formula that is calculated out for you by the IRS worksheets. Are you doing your own taxes, Turbo Tax, an accountant, some other online tax software??? As long as you aren't doing them manually (which makes calculation a bit more difficult and time consuming) you plug ALL your medical expenses into that section and the software will figure out the deductible portion. Also, if you are married filing joint, I believe your standard deduction for this year was $10,000. It only makes sense to use the medical deductions if ALL your itemized deductions exceed that "standard" deduction amount. Itemized deductions include mortgage interest, property tax, medical expenses, dependent care expenses and a few others.

Does that make sense? Let me know if it doesn't.

 

[LouLou]

I'm going to an accountant on Sat. so I'll bring all my spreadsheets and totals and see what he says. I'm pretty sure we'll go itemized because we have 20K of medical deductions so far and I'm working on getting this energy expense in there too!

 

[LisaV]

Scroll down in this link ( <a target=_blank class=ftalternatingbarlinklarge href="http://www.pulmonarypaper.org/main.asp?CatID=20">http://www.pulmonarypaper.org/main.asp?CatID=20</a> ) to "Get the tax deduction" and you'll find out how to figure out electricity usage.

 

[julie]

Glad you found something Lisa, I'm banging my head against the wall. I think I've read about 1000 documents on the IRS website today.

Good luck Lauren,

 

[LouLou]

Thanks to everyone that helped me with this. In case anyone is curious, the energy used by my Vest and air compressor is only ~$35 per year, so not a big deduction but it all adds up. My total is $20K in deductions for food and medical expenses. Plus we have moving expenses!! I go to my cpa tomorrow so we'll see if he thinks it's all legit - and hopefully get a big return!!

 

[anonymous]

GREAT topic and VERY informative! This may be a really stupid question, but what if you get your meds paid for through insurance? Can you still deduct them? I usually have to pay out of pocket, but do get most, if not all, reimbursed.... Obviously, I don't get reimbursed for energy and food costs, though, so that I will deff. take advantage of. Basically, I just wonder how/if you can deduct if you have insurance???

Sonia

 

[JazzysMom]

Sonia....U can only deduct what is out of your pocket. So if you have a $15. copay on a med, but the med cost $100., you can only claim that $15. that you spent. You can include occ things that goes towards a CFers care as well as your portion of any healthcare premiums. OUT OF POCKET expenses.

 

[LouLou]

Sonia, If you pay premium payments for your medical insurance you can claim this along with the copays like Jazzy was saying. The big thing is the food deduction which is considered a medical deduction fror Cf. Any food you purchase over the amount of the dollar amount the IRS says a person of your age and sex needs is is deductible with CF. PM me if you have specific questions. You should definitely go for it! I couldn't believe how much I was spending..

 

[anonymous]

how much can a 36 year old female who weighs 125 deduct?

 

[LouLou]

bump