![]() ![]() ![]() Separately, the IRS delayed until May 17 the deadline to make 2020 prior-year contributions to HSAs and other individually owned tax-advantaged accounts (see the box below). However, in order to qualify as a deduction, the PPE and other medical expenses must exceed 7.5 of a person’s annual gross income (AGI), and the purchases cannot be reimbursed by insurance. However, if an amount is paid or reimbursed under a health FSA, HSA, HRA or any other health plan, it is not deductible for tax purposes. Additional information is available on IRS.gov. ![]() Deductible costs are related to medical care and treatment and therefore are eligible for reimbursement with a. you are exposed to the risk of illness or injury in the course of carrying out your income earning activities. Qualified medical expenses (QMEs) are designated by the IRS and include medical, dental, vision, and prescription expenses. To be deductable both of the following must apply: You must have incurred the expense yourself. The IRS said Friday that face masks, hand sanitizer and disinfectant wipes bought to curb the spread of COVID-19 are tax-deductible medical expenses. In Announcement 2021-7, issued March 26, the IRS clarified that purchases of PPE such as face masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus, "for use by the taxpayer, the taxpayer's spouse, or the taxpayer's dependents that are not compensated for by insurance" are deductible from income for tax purposes, "provided that the taxpayer's total medical expenses exceed 7.5 percent of adjusted gross income."Īs tax-deductible expenses, the amounts paid for PPE are also eligible to be paid or reimbursed under health flexible spending arrangements (health FSAs), health savings accounts (HSAs) or health reimbursement arrangements (HRAs). The IRS also reminds taxpayers that the costs of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, HRAs, or Archer MSAs. You may be able to claim a deduction for protective items you purchase and use at work, including gloves, face masks and sanitiser. The IRS cleared up an issue about benefit account reimbursements for nonprescription, over-the-counter personal protective equipment (PPE) that has been a source of confusion since the start of the COVID-19 pandemic. ![]()
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