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

Exemption

A fixed deduction allowed to every taxpayer, except those who may be claimed as a dependent by another person. Extra exemption deductions are allowed for a spouse on a joint return and for each qualifying dependent. A deduction of $3,400 is allowed for each exemption claimed on 2007 returns, but the deduction is phased out for certain high income individuals.

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