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Americans can get a tax break on masks, hand sanitizer, disinfectant wipes and other personal protective equipment this filing season to help prevent the spread of Covid-19, the IRS said on Friday.
The tax code allows taxpayers to deduct medical expenses that exceed 7.5% of their adjusted gross income per year. The IRS counts the cost of PPE as a medical expense that is eligible for the tax break.
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For example, individuals with an income of $ 100,000 in 2020 can deduct medical expenses greater than $ 7,500 from their tax bill. You need to list your taxes to take advantage of this.
Expenses reimbursed by the insurance are not eligible.
PSA costs may be paid or reimbursed in certain tax-privileged medical accounts, according to the IRS. These include health savings accounts, flexible health spending accounts, Archer medical savings accounts, and healthcare reimbursement schemes. Taxpayers typically have 2½ months after the end of the year to spend unused FSA funds. The December Relief Act allows employers to extend this grace period up to 12 months.