Personal Protective Equipment Deductible as Medical Expense

The IRS issued Announcement 2021-7 today clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses.

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).

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Please remember that in order to take this as a deduction, you have to itemize deductions rather than taking the standard deduction and your total medical expenses have to exceed the 7.5% floor.

Obviously, if you’re in business, this is an ordinary and necessary business expense and should be fully deductible

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