Face Masks and Other Pandemic Necessities are Eligible as Deductible Medical Expenses

Face Masks and Other Pandemic Necessities are Eligible as Deductible Medical Expenses

While there has been much debate about mandating masks in businesses and restaurants, one thing no one will debate is receiving money back from the Internal Revenue Service (IRS). 

With the issue of Announcement 2021-7, personal protective equipment (PPE) such as hand sanitizer, sanitizing wipes, and masks are deductible medical expenses since they are primarily used for combating the spread of COVID-19.

Any amount paid for these items that are not covered by insurance is eligible for deductibles as long as the taxpayer’s total medical expenses exceed 7.5% of adjusted gross income.

Under tax-favored accounts, the amounts paid for COVID-19 PPE can also be eligible to be reimbursed under:

· Health flexible spending arrangements (FSAs)
· Archer medical savings accounts (Archer MSAs)
· Health reimbursement arrangements (HRAs)
· Health savings accounts (HSAs)

If an amount is reimbursed through any health plan or the accounts listed above, COVID-19 PPE will not be eligible as a deductible medical expense.

View our infographic for more information.