Orthotics, custom-designed shoe inserts that provide support and alleviate discomfort, can be a significant expense for many individuals. Given their medical necessity for various conditions, understanding how to claim orthotics as tax-deductible expenses is crucial.
For taxpayers seeking relief from the financial burden of these essential devices, knowing the intricacies of tax deductions can lead to substantial savings.
Criteria for Orthotics Deductibility
To determine if orthotics qualify as a tax-deductible medical expense, several factors must be considered. The key criterion is that the expense must be for medical care primarily to alleviate or prevent a diagnosed disease or condition; the cost of equipment and supplies used for that purpose can qualify. A written recommendation or prescription from a licensed healthcare professional is strong evidence of medical necessity and helps substantiate the claim. 1Internal Revenue Service. Publication 502 Medical and Dental Expenses
Another important aspect is the nature of the condition being treated. Orthotics are often recommended for conditions such as plantar fasciitis, arthritis, or diabetic foot complications. These conditions should be documented in medical records to substantiate the need for orthotics. The IRS expects the medical necessity of the orthotics to be clearly linked to a diagnosed medical condition.
The timing of the expense also plays a role. Orthotics must be purchased and paid for within the tax year for which the deduction is being claimed. This means that if you buy orthotics in December, you can only claim them on that year’s tax return. Keeping track of purchase dates and ensuring they align with the tax year is essential for a successful claim.
Documentation for Orthotics Claims
Proper documentation is the linchpin for successfully claiming orthotics as a tax-deductible medical expense. The first step is obtaining a detailed recommendation or prescription from a licensed healthcare professional that clearly ties the orthotics to a specific diagnosed condition.
Once you have the recommendation, retain all related receipts and invoices. These should show the date of payment, amount, and provider. Keep both physical and digital copies. Maintaining a year-long log of medical expenses, including orthotics, can make filing easier and support your claim if questions arise.
Medical records also matter. Ensure your provider’s notes document the diagnosis, the recommendation for orthotics, and any relevant follow-ups. Thorough records make it easier to demonstrate medical necessity if the IRS asks for support.
Calculating the Deductible Amount
Understanding how to calculate the deductible amount for orthotics involves a few steps. The medical expense deduction only applies to the portion of your total unreimbursed medical expenses that exceeds 7.5% of your adjusted gross income (AGI). For example, if your AGI is $50,000, only the amount of total qualifying medical expenses over $3,750 is potentially deductible.
To determine what qualifies, aggregate all eligible medical expenses for the year. This includes the cost of orthotics and other qualifying out-of-pocket medical costs. You must itemize deductions on Schedule A to claim any medical expense deduction.
It’s also important to subtract any reimbursements. Amounts paid or reimbursed by insurance, an HSA, FSA, or other sources cannot be deducted. Only the unreimbursed portion counts toward your medical expenses for the year.
Common Mistakes in Orthotics Claims
A frequent mistake is treating items purchased mainly for general comfort as deductible medical expenses. The IRS allows deductions only for amounts paid for medical care; items that are merely beneficial to general health are not deductible. When orthotics are used primarily to treat a diagnosed condition and you can substantiate medical necessity, they are more likely to qualify.
Another common pitfall is inadequate documentation. Keep the provider’s recommendation, detailed receipts, and relevant medical records. Without them, the IRS may question the expense and deny the deduction.
Taxpayers also sometimes miscalculate their deductible amount by overlooking the 7.5% AGI threshold or by forgetting to itemize on Schedule A. Double-check your totals and confirm that itemizing yields a larger deduction than the standard deduction before claiming the expense.
Recent Changes in Tax Laws
For the 2025 tax year, the medical expense deduction threshold remains 7.5% of AGI for individuals who itemize on Schedule A; there has been no change to this percentage. 2Internal Revenue Service. Instructions for Schedule A (Form 1040)