For the people who need it most, a mobility scooter is a great help. But it should also not hurt your pocket thinking about the tax and medical expenses associated with it.
Throughout this article, I will answer whether mobility scooters are tax-deductible and if tax-exempt is applicable. You will never be left blank after you read this.
Yes, mobility scooters are tax-deductible as long as it is used to accommodate a disability or condition. When buying mobility scooters, people with disabilities are qualified for tax-exempt.
Mobility scooters as medical equipment do not require tax when buying. Also, In fact, you can claim them on your tax returns as deductions.
Is buying a Mobility Scooter Tax-exempt?
In some states, tax exemptions are applicable for persons with disabilities. Just like in Texas, for example.
However, this tax-exempt (sales and use tax) is only limited to specific items. This means that some things are always tax-exempt for people with disabilities. (If you are from Texas, you can further read this document for guides)
The mobility scooter is among the specific items exempt from sales and uses tax. Don’t forget to give the seller written directions from your doctor or physician.
When it comes to always be tax-exempt, you do not need to provide an exemption certificate to the seller. As long as the mobility scooter you buy will only be used for medical reasons. Or to help you to move independently.
Mobility Scooter Services are Exempted to Tax
Of course, mobility scooters are not limited to buying and using. That mobility aid also requires services to work as expected and have a longer life span of use. But how about the tax associated with them?
Aside from specific items, some services for mobility scooters such as; modifications, maintenance, and repairs are tax-exempt.
Medicare Part B Covers Mobility Scooter as Tax Deductions
Mobility scooters are considered DME or Durable Medical Equipment found in Medicare Part B. And Medicare Part B covers them on certain conditions simplified below:
- You meet all of the following criteria and have limited mobility.
- You can use the mobility scooter safely, and you have a companion who is always ready to help you.
- The mobility scooter is free to use inside your home. This means that nothing is blocking its paths.
- You find it difficult to do your daily activity even if you use a cane, crutches, or walker.
- Your doctor and supplier that requires you to use the mobility scooter are both members of Medicare.
- You have difficulty moving around in your home because of your health.
- Your doctor has required you to use a mobility scooter indoors as part of the treatment of your condition.
Medicare will cover the remaining 80%. Now, after paying your Part B deductible for the year, you need to pay 20% of the amount that Medicare approves.
Ang mobility scooter may be a good solution for people unable to walk. But remember, to qualify, you need to be easy to sit in and out of the scooter chair and have enough strength to sit up and control without much difficulty.
Just a side note, to lower your costs, you can rent scooters on a short-term basis. To learn more, you can read some information here.
How much medical expense is deductible in 2022?
Thinking about your taxes for this year with your mobility scooter? Here is the good news.
In tax years 2022 and 2023, taxpayers can deduct qualified medical expenses that exceed 7.5% of their taxable income for 2021. For example, if your adjusted gross income is $60,000, any medical costs above $4,500, or 7.5%, can be deducted from your income.
Are Mobility Scooter Batteries and Other Parts Tax-deductible?
Specifically, mobility scooter parts, including batteries for disabled persons, are non-Value Added Tax (VAT). It means free of VAT for qualified people.
Remember, “for qualified people”. It means that they do not need to pay VAT on any mobility scooter goods based on the VAT relief outline. Now, to qualify for VAT exemption, you must declare yourself as disabled in order to receive the VAT exemption.
Conclusion
So there you have it. Yes, your mobility scooter is either tax-exempt (sales and use tax) or tax-deductible as long as used for medical reasons and with the doctor or physician’s approval.
Citations
Tax Exemptions for People with Disabilities
Medicare’s Wheelchair & Scooter Benefit
