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Tax Time Is Approaching Fast!
It’s time for our annual income tax article! If you are an oxygen user, you may be able to take 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 is how you compute the cost:
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 or ask your oxygen provider. As an example, we will use 115 volts at 4 amps. To convert to watts (W), multiply volts and amps: 115 volts x 4 amps = 460W.
2. Next, calculate the number of kilowatt (KW) hours you use per year. Multiply the watts your concentrator uses by .001KW/W to convert watts to kilowatts. In our example, 460W x .001KW/W = 0.46W
3. Multiple this answer by 24 hours/day x 365 days/year, if you are a continuous user. If you do not always have your oxygen on, multiply by the average number of hours used per day and then by 365 days/year. To continue the example, 0.46KWx 24 hours/day x 365 days/year = 4,029.6 KWH/Y. This is the kilowatt hours you have used to run your concentrator the past year.
4. 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 their office.) Let’s say they charge you 8 cents per kilowatt hour (prices vary widely depending on the region in which you live.) To finish our example, 4,029.6 KWH/Y x $0.08 = $322.27. This is the amount of electricity you paid to run your concentrator. If you paid for travel oxygen, a portable nebulizer or an oximeter, it may also be considered a medical expense.