The IRS Announced That PPE Equipment is a Deductible Medical Expense


Published: 03.29.2021

The Internal Revenue Service maintains that face masks, hand sanitizer and sanitizing wipes used to prevent the spread of COVID-19 are tax deductible and are treated as amounts paid for medical care under 213(d) of the Internal Revenue Code. Therefore, amounts paid by an individual taxpayer for COVID-19 PPE for use by the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent(s) that are not compensated for by insurance or otherwise, are deductible under §213(a) provided that the taxpayer’s total medical expenses exceed 7.5% of adjusted gross income.

Group health plans must be amended to provide for reimbursements of expenses for COVID-19 PPE incurred for a period on or after January 1, 2020. Plan amendments must be adopted by the end of the plan year in which the amendment is effective, but no later than after December 31, 2022.
 
Click below for details.
IRS Announcement 2021-7 – Amounts Paid for Certain Personal Protective Equipment Treated as Medical Expenses A-2021-07 (irs.gov)