Are Walk-In Tubs Tax Deductible?

March 10, 2023

*Updated on October 9th, 2024

Installing a walk-in tub can bring a variety of benefits, including improved accessibility and safety for individuals with mobility issues. Alongside these advantages, there may be a possibility of obtaining a tax deduction for the initial costs. However, the eligibility and requirements for such deductions can vary depending on individual circumstances and the tax laws on a federal and state level.

In this article, we’ll explain the potential avenues for tax deductions associated with walk-in tub installations, providing an overview of factors to consider and highlighting the importance of consulting with a tax professional for personalized guidance.

Medicare’s Walk-in Tub Policy

Let’s start with the not-so-great news: Walk-in tubs designed for older adults are usually not classified as medical devices by Medicare. This means that your insurance policy will not cover the purchase cost. However, there are instances when Medicare can offer financial assistance. In fact, they might even give you a reimbursement once you’ve completed the installation of your walk-in tub at home.

Factors to Consider

According to Medicare’s policy, reimbursement happens after the tub has been purchased, not in advance. In addition, in order to claim a walk-in tub as a tax deduction, the bathtub must be considered a medical necessity. In more depth, this means that it has been prescribed by a doctor as a way to improve overall health or alleviate specific symptoms.

To qualify for medical expense deductions, the cost of your bathtub must exceed 7.5% of your adjusted gross income. This threshold is the minimum amount required to count towards your medical expenses.

Not all cases are the same, but if you can meet this criteria you have a good chance to save money on your taxes through the investment of your walk-in tub. If one is caring for an elderly parent, the homeowner can claim the expense under the Dependent Care Tax Credit. Some states have their own version of this credit that you can get more detail on here.

Reimbursement Process

To receive reimbursement on your walk-in tub, you must complete a claims procedure and demonstrate how your unique circumstances merit reimbursement. This guide outlines the steps you should take to develop a compelling presentation of your Medicare reimbursement claim. Follow these recommendations to increase your chances of being compensated.

1. Obtain a Prescription from a Healthcare Professional

A doctor’s diagnosis qualifies for a tax deduction. For example, if you purchased the walk-in tub for medical reasons such as arthritis, sclerosis, or mobility issues, it can be considered a required medical expense. If you purchased the walk-in tub for soothing pain or for a spa-like feel in your home, it won’t be included.

2. Acquire a Recommendation

While this step isn’t completely necessary, it can’t hurt to add some context to specifically why you or a loved one needs the walk-in tub to benefit their health and keep them safe. The purpose of this letter is to highlight the benefits of using a walk-in tub as a treatment method. This will assist in processing your claim by providing more detail around your specific situation.

3. Purchase Your Walk-In Tub

Now it’s time to purchase your walk-in tub and have it installed in your home. It’s crucial to keep all your paperwork as proof of purchase, and make copies of your invoice or receipt for future reference. It’s important to keep in mind that although Medicare may cover the cost of the tub, they won’t cover any changes to your home that are required for installation.

4. Finalize and Send Your Claim

Once you have gathered the necessary information, send your documentation and forms in to be reviewed. We recommend keeping a copy for yourself on file as well.

Common Mistakes to Avoid When Trying to Deduct a Walk-In Tub

One common mistake homeowners make when attempting to deduct the cost of a walk-in tub is failing to obtain proper medical documentation. Without a doctor’s recommendation or prescription that confirms the tub is a medical necessity, you may not qualify for the deduction. It’s crucial to keep all relevant paperwork organized to support your claim.

Another frequent error is not itemizing deductions correctly. Homeowners should ensure they are filing the appropriate tax forms and exceeding the required percentage of income to maximize their deductions. Additionally, it’s important to consider other eligible home improvements that may qualify as medical expenses, such as grab bars or ramps, which could further enhance your tax savings. By avoiding these pitfalls, you can better navigate the process of claiming deductions for your walk-in tub and related modifications.

Consult a Tax Professional

Homeowners considering the tax deductibility of a walk-in tub should strongly consider consulting with a tax professional. These experts can provide tailored advice based on your individual financial situation and ensure that you are making the most of available deductions. They can also help you navigate the complexities of IRS regulations, which can be challenging to interpret without experience.

Ensuring compliance with IRS rules is crucial to avoid potential audits or penalties. A tax professional can guide you on proper documentation, itemizing deductions accurately, and identifying any other eligible home improvements that may enhance your overall tax savings. By seeking professional advice, you not only maximize your benefits but also gain peace of mind knowing that you are adhering to all tax laws.

Final Thoughts

In conclusion, exploring the possibility of a tax deduction for walk-in tub installations by submitting it as a medical expense can be worth considering. While eligibility for deductions depends on several factors, including medical necessity and adherence to tax laws, it is important to consult with a tax professional and review guidelines. By staying informed and seeking expert advice, we hope you are able to make an informed decision to potentially benefit from tax deductions or credits, while also ensuring a safer and more comfortable living environment.

Additional Walk-In Tub Resources