October 11, 2021 1:24 am

Home Testing Kits for COVID-19 Are Eligible Medical Expenses

If you buy a home testing kid, you may treat it as a deductible medical expense if you itemize deductions (IR-2021-181). It is an expense for the diagnosis of a medical condition. The cost may also be reimbursed through a health flexible spending account (FSA), a Health Savings Account (HSA), a Health Reimbursement Account (HRA), or an Archer Medical Savings Account.

Reminder: The cost of personal protective equipment (PPE) for the primary purpose of preventing the spread of COVID-19 are also eligible expenses that may be reimbursed through the various health accounts listed above.

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Tax Glossary

Amount realized

A statutory term used to figure your profit or loss on a sale or exchange. Generally, it is sales proceeds plus mortgages assumed or taken subject to, less transaction expenses, such as commissions and legal costs.

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