The IRS announced that Americans can get a tax break this filing season for masks, hand sanitizer, sanitizing wipes, and other personal protective equipment to prevent the spread of Covid-19.
The tax code lets taxpayers deduct medical costs that exceed 7.5% of their adjusted gross income each year. The IRS is counting costs incurred for PPE as a medical expense that qualifies for the tax break.
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For example, individuals with $100,000 of income in 2020 can deduct medical costs of more than $7,500 from their tax bill. You need to itemize on your taxes to take advantage of this.
PPE costs are eligible to be paid or reimbursed in certain tax-preferred medical accounts, the IRS said. They include health savings accounts, health flexible spending accounts, Archer medical savings accounts and health reimbursement arrangements. Taxpayers typically have 2½ months after the year ends to spend unused FSA funds. The December relief law lets employers extend that grace period up to 12 months.
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