PPE Is a Deductible Medical Expense

The IRS announced that the cost of personal protective equipment (PPE) purchased for the primary purpose of preventing the spread of COVID-19 is a deductible medical expense (Ann. 2021-7). PPE includes masks, hand sanitizer, and sanitizing wipes. This means the expenses can be deducted by those who itemize, to the extent total out-of-pocket medical expenses exceed 7.5% of adjusted gross income.

PPE is also treated as a reimbursable expense for purposes of:

• Health flexible spending arrangements (health FSAs)
• Health reimbursement arrangements (HRAs)
• Health savings accounts (HSAs)
• Archer medical savings accounts (Archer MSAs)
• Any other health plans

Note: Employers maintaining such plans that want to provide reimbursements dating back to January 1, 2020, must amend their plans to allow for this action.