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.
A mutual-fund distribution allocated to gains realized on the sale of fund portfolio assets. You report the distribution as long-term capital gain even if you held the fund shares short term.