Is Handicap van for my son tax deductible as medical expense?

Thanks for the info. One question though - what if the van is ONLY going to be used for transporting my disabled daughter to medical appointments? Does that change anything about deducting the full cost?

For medical transportation, the rules are a bit different. If you're only using the vehicle for medical transport, you still couldn't deduct the entire vehicle purchase. Instead, you could deduct the mileage for those medical trips (the standard medical mileage rate is lower than the business rate) or actual expenses like gas and oil related to medical travel. Even in cases where a vehicle is used exclusively for medical transportation, the IRS generally considers the base vehicle a personal asset with modifications being the medical expense portion. The key distinction the IRS makes is between the basic transportation need (which everyone has) versus the special modifications needed specifically due to the medical condition.

How does this service work exactly? Do you just upload your receipts and they tell you what's deductible? I'm in a similar situation with medical equipment purchases and I'm totally lost on what qualifies.

Did they give you any guidance on how to handle the 401k withdrawal part? I'm also looking at dipping into retirement funds for medical expenses and wondering if there's any way to avoid the early withdrawal penalty.

For the receipts question - yes, exactly! You upload your documents (receipts, invoices, etc.) and their system analyzes them to identify what's deductible as a medical expense. They even gave me a detailed report explaining which specific components qualified and the exact tax code references supporting each deduction. Regarding the 401k withdrawal, they actually provided great guidance there too. They explained that you might qualify for a waiver of the 10% early withdrawal penalty (though not the regular income tax) if the distribution is used to pay for qualifying medical expenses exceeding 7.5% of your AGI. They helped me document the connection between the withdrawal and the medical purchase.

Wait, how is this even possible? The IRS phone system is a nightmare. Are you saying this service somehow jumps the line for you?

This sounds too good to be true. I've literally spent hours on hold with the IRS multiple times and eventually gave up. How much does this cost? Is it just another scam trying to get access to your personal tax info?

It doesn't jump the line - they basically call and wait on hold for you. When an agent finally picks up, you get an alert and jump on the call. It's like having someone else wait in a physical line while you do other things. No, it's definitely not a scam. You don't provide any tax details to the service - they just connect the call. You only discuss your specific tax situation directly with the IRS agent after you're connected. I was skeptical too until I tried it. After wasting days trying to get through myself, getting connected in minutes was incredible.

Thanks for bringing up FSA/HSA options - I do have an HSA but haven't been maxing it out. Does anyone know if wheelchair van modifications would qualify for HSA funds? And would this approach be better than trying to claim them as itemized deductions?

Yes, the van modifications would generally qualify for HSA funds since they're considered medical expenses. The advantage of using HSA funds is that you get the tax benefit regardless of whether you itemize deductions or not, and you don't have to meet that 7.5% of AGI threshold that applies to itemized medical deductions. If you have the option, using HSA funds is almost always more advantageous than claiming itemized deductions for the same expenses. The HSA gives you triple tax benefits: tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Totally agree about detailed invoices! We did something similar for my mom, and the modification company just gave us one lump sum initially. We had to go back and ask for an itemized breakdown of every component. Made a huge difference when filing.

That's a great point! Our modification company was pretty good about providing details, but I still had to ask for clarification on a few items. The more specific the better - like having separate line items for the ramp mechanism, the door widening, the specialized restraint system, etc. Our accountant even suggested taking photos of all the modifications as additional documentation.