Employee Benefit News for School, City and County Employers

PPE Considered a Deductible Medical Expense

Written by Adam Kuck | Apr 9, 2021 10:45:00 AM

1 minute read

Personal protective equipment (PPE), including masks, hand sanitizer, and sanitizing wipes used to prevent the spread of COVID-19, can be deducted as a medical expense when filing taxes, according to the IRS. Amounts that are not covered by insurance can be deducted if the total medical expenses exceed 7.5% of adjusted gross income.

COVID-19 PPE can also be paid for or reimbursed under medical flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), and health savings accounts (HSAs). But if one of these accounts is used for this purpose, it will not be considered a deductible medical expense.

Group health plans (including health FSAs and HRAs) can be amended pursuant to the announcement to provide for reimbursements for COVID-19 PPE incurred for any period beginning on or after January 1, 2020, if certain requirements are satisfied.

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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.