Is a wheelchair van tax deductible? While the cost of an accessible vehicle as a whole is not deductible, there are tax credits for specific types of durable medical equipment (DME) that you can take advantage of. As 2020 comes to an end, we wanted to remind our customers of the disability tax deductions available if they purchased mobility equipment this year.
What Is the Deduction for Wheelchair Vans?
Under the IRS Publication 502, deductions for “the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability” are allowed. You can deduct the cost of medical expenses that exceed 7.5% of your adjusted gross income (AGI).
While it won’t cover the cost of a “regular car,” it will cover the difference of a vehicle “specially designed to hold a wheelchair.” This means that the chassis (the base framework) cost won’t be covered, but your accessible conversion from Ability Center will be items like hand controls, securement devices, and a trackless transfer seat are just a few conversion items that may be eligible for this type of tax deduction.
Additionally, wheelchair van owners can deduct expenses associated with vehicle upkeep as long as they use the car for medical purposes – such as transporting a wheelchair – along with medical costs incurred by a spouse or dependent. While general vehicle maintenance is not included, it can consist of items like oil, gas, and mileage, which can add up throughout the year.
How Do You Qualify for DME Tax Deduction?
Wheelchair users who have purchased an accessible vehicle from Ability Center this year may qualify for a federal medical expense tax deduction. To qualify, you need a letter or prescription from a medical professional that details how a wheelchair van is medically necessary for the transportation. You must also fill out Schedule A under the IRS form 1040 to calculate your itemized deductions.
Keep in mind the same letter may be used to exempt your wheelchair van or other mobility equipment from state and local sales taxes. Contact your local Ability Center dealer with any questions. A Mobility Specialist will be able to provide you with a copy of the modification costs that you can use when filing your year-end taxes.
This isn’t the only type of savings you can receive, though. Ability Center’s Auto Manufacturer Rebate Program connects you with participating vehicle manufacturers that offer rebates for their vehicles. Vehicle manufacturers like Toyota, Chrysler, and Honda all offer rebates of up to $1,000 if you modify one of their new, eligible vehicles and provide them with the necessary supporting documentation.
Tax season will be here before you know it! Are you still curious about the tax deductions available for durable medical equipment (DME)? Reach out to your local Ability Center dealer. Our team of Mobility Specialists is available in all 15 of our locations across the country to help answer any questions you may have about deductions for mobility equipment.
Learn More About Disability Tax Deductions to Help You Get the Biggest Return
Is a wheelchair van tax deductible?
- Unfortunately, a wheelchair van is not tax-deductible, but the wheelchair van conversion and the conversion features are tax-deductible. This will include the cost of the conversion and the cost of hand controls, securement systems, transfers seats, and more. Talk to your local tax professional to make sure you properly claim this deduction.
Can I claim a mobility scooter on my taxes?
Mobility aids such as scooters, wheelchairs, and other people carriers are tax-deductible medical expenses. You can also claim up to 20% of the cost of a van to transport wheelchair users with a maximum of $5,000.
Are handicap accessible improvements tax deductible?
- Handicap accessible home improvements are tax deductible. You can deduct part of the cost of these improvements from your taxes. Some of these improvements include: widening doorways, installing a wheelchair ramp, adding a handicap-accessible bathroom, installing a stairlift, or any other changes you may make to accommodate your disability.