Hearing Aid Assistance Credit

Summary#

This bill would add a new federal income tax credit for people who buy hearing aids. A taxpayer could claim up to $1,000 of the amount they paid during the tax year for a qualified hearing aid that was not paid for by insurance or other coverage. The credit would not be available to individuals whose modified adjusted gross income exceeds set limits. The credit would only apply in a year when the taxpayer makes an election to use the credit, and that election may be used only once every five years. The change would apply to tax years beginning after December 31, 2026.

What it means for you#

  • Eligible taxpayers can claim a credit equal to up to $1,000 of hearing aid purchase costs not covered by insurance.
  • The credit is available only for "qualified hearing aids," meaning devices described in specified Food and Drug Administration regulations and authorized for commercial distribution, and intended for use by the taxpayer or by a dependent for whom the taxpayer claims a deduction under section 151(c).
  • Income limits apply: no credit if modified adjusted gross income is over $300,000 for a head of household or a joint return, or over $150,000 for any other individual. "Modified adjusted gross income" is defined in the bill as adjusted gross income increased by amounts excluded under sections 911, 931, or 933.
  • A taxpayer must make an election for the credit to apply for a taxable year. An election is not allowed if the taxpayer had an election in effect for any of the four preceding taxable years (effectively limiting use to once every five years).

Expenses#

  • The credit covers up to $1,000 of the taxpayer's out-of-pocket payments for qualified hearing aids in a tax year.
  • The credit applies only to amounts not compensated by insurance or otherwise.
  • The bill bars claiming this credit for any expense that is also claimed as a deduction or credit under any other provision of the tax code.
  • No publicly available information on the bill’s estimated effect on federal revenue or program costs is included in the bill text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.