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