How You Can Subtract Masks As Medical Expenses From Your Taxes
The IRS recently clarified that personal protective equipment such as face masks, hand sanitizer and sanitizing wipes can now be deducted as medical expenses, and tax breaks also apply to health savings accounts. Here’s what you need to know to apply for a tax credit.
How to get
You can claim reimbursement for yourself, your spouse (if you are applying jointly) and dependents, but only for purchases made after January 1, 2020. There are two ways to file a claim:
- As part of a detailed tax return: PPE costs can now be combined with other qualified medical expenses that are taxable if they exceed 7.5% of your adjusted gross income (for example, if you earned $ 100,000, you can deduct additional expenses in excess of the first $ 7,500). However, expenses that have already been reimbursed through the insurance claim will not be eligible.
- Like a qualified purchase made with tax-free funds: PPE can now be purchased with funds from the FSA, HSA, Archer MSA, and HRA health care accounts ( see this Lifehacker publication for an overview of qualified spending). Also note that the COVID law allows employers to carry forward health care bills in 2020 for up to 12 months, so check your plan’s policy with your employer to see if you have more time to make eligible purchases.
For more information on how to determine what is being deducted as medical expenses, use this calculator tool provided by the IRS (it takes about 15 minutes). For more information on what counts as a qualifying expense for a tax deductible invoice, click here .
You still have time to file
As both taxpayers and the IRS have struggled to keep up with all the changes in COVID legislation, the IRS has extended the tax year 2020 tax filing deadline from April 15 to May 17, 2021. This deferral applies to individual taxpayers. including individuals who pay self-employment tax. Fines, interest and tax surcharges will begin to accrue on the remaining unpaid balances from May 17, 2021. Most states have followed suit and extended their deadlines as well .