Face masks and hand sanitizer are tax deductible, IRS says. Here’s what to know
The stash of face masks and hand sanitizer you’ve purchased during the pandemic could help get you a tax break.
The Internal Revenue Service last week clarified that personal protective equipment — such as masks, hand sanitizer and sanitizing wipes — bought for the “primary purpose” of protection against the coronavirus are considered tax deductible medical expenses.
Taxpayers could already deduct the costs of medical expenses if those expenses accounted for at least 7.5% of their adjusted gross income. Now, the IRS has included PPE bought for the taxpayer, a spouse or a dependent in the covered expenses.
Purchases made on or after Jan. 1, 2020, are included.
Taxpayers must itemize on their tax returns to deduct the costs, CNBC reports.
“The amounts paid for personal protective equipment are also eligible to be paid or reimbursed under health flexible spending arrangements (health FSAs), Archer medical savings accounts (Archer MSAs), health reimbursement arrangements (HRAs), or health savings accounts (HSAs),” the IRS says.
If costs are reimbursed through those means, however, the IRS says they are not deductible.
Tax filing season started Feb. 12, and the IRS recently extended the deadline to file 2020 federal income taxes from April 15 until May 17. Federal income tax payments can also be postponed until May 17.
The extension is automatic, the IRS says, and taxpayers don’t need to file forms or call the agency to qualify. But it does not apply to state income taxes, and individuals should check if their state’s rules have changed.
This marks the second year in a row the IRS has extended the filing deadline. In 2020, the deadline was extended until July 15.
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a release.
Taxpayers are still encouraged to file as soon as possible.
“Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to,” Rettig said, according to the release.
This story was originally published March 29, 2021 at 12:51 PM with the headline "Face masks and hand sanitizer are tax deductible, IRS says. Here’s what to know."
