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Tax Deductions

It's tax time again and we would like to present this popular annual article! If you are an oxygen user you may be able to deduct the cost of the electricity used to operate your concentrator as a medical deduction. Check with whoever prepares your annual income tax return if you can, or would benefit from taking this deduction. This hidden cost of oxygen is very real to users.

To compute the cost, do the following:

1. Look at the label on your concentrator. It states the number of volts and amps the concentrator uses. If not found on the concentrator, look for it in the manual. As an example, we will use 115 volts at 4 amps. To convert to watts, multiply volts and amps as in 115 volts x 4 amps = 460 watts or W.

2. Next, calculate the number of kilowatt – KW – hours per year. Multiply the watts your concentrator uses by .001KW/W to convert watts to kilowatts as 460W x .001 KW/W = .46KW

3. Multiply this answer by 24hours/day x 365 days/year if you are a continuous user. If you do not run your oxygen continuously, multiply by the average number of hours per day and then by 365. In our example, .46KW x 24hours/day x 365 days/year = 4,029.6 KWH/Y - This is the kilowatt hours you have used in the past year.

4. You now multiply the above result by the cost per kilowatt hour your electric company charges you. (It may be listed on your bill or you could call the local office.) Let’s say they charge you 8 cents per kilowatt hour, but remember they vary widely depending on where you live. In our example, 4,029.6KWH/Y x $0.08 = $322.37. This is the amount it cost you to power your concentrator in the past year.

You may want to investigate the possibility of deducting the cost of an oximeter as part of your medical expenses.