In addition, you can pay as eligible medical expenses for COVID-19 and PSA home test kits with cash in a Flexible Health Spending Agreement (Health FSA), Health Savings Account (HSA), Health Reimbursement Agreement (HRA), or Archer Medical Savings Account (Archer MSA). For example, if your adjusted gross income is $75,000, you can only deduct the amount of your eligible medical expenses that exceeds $5,625. However, there is good news for individual taxpayers: PSA is an eligible expense under group health plans. For example, let`s say you participate in a flexible health insurance account (FSA), Archer Medical Savings Account (Archer MSA), health reimbursement agreement (HRA), or health savings account (HSA). In this case, these plans may refund the purchase of PPE. If a health insurance plan reimburses you, you won`t be able to deduct PSA expenses from your taxes. 2. Only medical expenses exceeding 7.5% of your AGI are deductible. Fortunately, there are a large number of unreimbursed medical expenses that can be added to your individual prints, from acupuncture treatments to X-rays. If you have high medical expenses and are approaching the 7.5% threshold, your COVID-19 PSA expenses could exaggerate you and allow you to deduct a portion of your total medical expenses. Also note that only unreimbursed expenses count as eligible medical and dental expenses. For example, if you are reimbursed for expenses you originally paid, you will have to reduce the total amount of your expenses by that amount when you claim the medical expense deduction.

Similarly, if your insurance company covers part of your expenses and you pay the rest, you can only deduct the amount you paid. You can also use tax-advantaged flexible healthcare spending accounts (Health FSAs), Archer Medical Savings Accounts (Archer MSAs), Healthcare Reimbursement Agreements (HRAs), or Health Savings Accounts (HSAs) to pay for your PSA. However, if you do, you won`t be able to use these expenses as detailed medical expenses because you`ve already received tax relief for them. The same applies if you incur medical expenses that your insurance fully covers. According to the IRS, COVID-19 home testing kits are an eligible medical expense under tax laws. Personal protective equipment (PPE) such as masks, hand sanitizers and disinfectant wipes are also reimbursable medical expenses when used primarily to prevent the spread of COVID-19. This means that taxpayers who register can deduct the cost of home screening supplies and PPE as long as their total eligible medical and dental expenses exceed 7.5% of their adjusted gross income (AGI). Eligible teachers can also deduct unreimbursed tuition fees for the purchase of COVID-19 protection items made after March 12, 2020.

Known as the educator expense deduction, eligible educators can deduct up to $250 in eligible expenses per year ($500 if spouses file a joint return and both spouses are eligible educators, but no more than $250 per year). Educators do not have to register to get this deduction. For more information on determining the deductible, see Can I deduct my medical and dental expenses? and Publication 502, Medical and Dental Expenses. If you are a teacher, you can deduct unreimbursed expenses for PPE purchases made after March 12, 2020 as a teacher deduction. Teachers receive up to $250 in eligible expenses per year ($500 if married and submit jointly if both spouses are eligible educators, but not more than $250 per year). This is a deduction you can make without having to list your taxes, so you don`t have to worry about hitting the 7.5% medical deduction threshold or the standard deduction. The Internal Revenue Service says any amount you paid for PSA to prevent the spread of COVID-19 is deductible as medical expenses. For example, if you stock up on disinfectant wipes, you can use these costs as medical expenses for your 2020 tax return.

You can also deduct expenses for masks, gloves and other PPE. You can also deduct the cost of diagnostic services such as COVID-19 testing fees. For many businesses, personal protective equipment (PPE) is a relatively new expense category. When COVID-19 infections began to rise in 2020, companies that had never provided protective equipment to their employees were suddenly encouraged (and often incentivized) to purchase wearable safety equipment for their employees. These include surgical masks, face shields, goggles and gloves. Now, many companies want to know if these costs are tax deductible? Amounts paid for PPE used to prevent the spread of COVID-19 are considered medical expenses under the Internal Revenue Code. Therefore, amounts paid by an individual for PPE that are used by the taxpayer, the taxpayer`s spouse or dependants, and that are not compensated by insurance or otherwise, are deductible, provided that the taxpayer`s total medical expenses exceed 7.5% of the adjusted gross income.