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:
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.
An unincorporated business or income-producing entity organized by two or more persons. A partnership is not subject to tax but passes through to the partners all income, deductions, and credits, according to the terms of the partnership agreement.