Face masks, hand sanitizer count as deductible medical expenses

Money put towards face masks, hand sanitizer and cleansing wipes that are used to curb the spread of COVID-19 qualify as deductible medical expenses, the Internal Revenue Service has announced.

Spending on that COVID-19 related personal protective equipment is also eligible to be reimbursed under health flexible spending accounts (FSAs), Archer medical savings accounts (Archer MSAs), health reimbursement arrangements (HRAS) and health savings accounts (HSAs).

Keep in mind that if an employee is reimbursed by any of the above savings accounts for a PPE cost, they are prohibited from claiming that same cost as an expense on their tax forms.

Group health plans (including FSAs and HSAs) can be amended to provide reimbursement for PPE-related expenses that occurred on or after Jan. 1, 2020 if certain requirements are met.