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.

advertisement
Tax Glossary

Private letter ruling

A written determination issued to a taxpayer by the IRS that interprets and applies the tax laws to the taxpayer’s specific set of facts. A letter ruling advises the taxpayer regarding the tax treatment that can be expected from the IRS in the circumstances specified by the ruling. It may not be used or cited as precedent by another taxpayer.

More terms