Internal Revenue Service Issues Reminders on Covid-19 Home Testing

Covid Test 2

The Internal Revenue Service issued a reminder that the cost of the home testing kits for COVID-19 is an eligible medical expense that can be paid or reimbursed under a flexible spending arrangements (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), or an Archer medical savings accounts (Archer MSAs).

Items such as masks, hand sanitizer, and sanitizing wipes are also reimbursable if their primary use is COVID-19 related and if the plan is amended to include these items.

For those consumers who may not have any of the above reimbursement accounts but itemize on their tax return, they can deduct the cost to the extent their total eligible medical and dental expenses exceed 7.5% of their adjusted gross income (AGI).

A copy of the IRS Announcement 2021-7 is A-2021-07 (irs.gov)

 

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