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PPEs' to prevent COVID-19 are tax-deductible and Amounts Paid are being treated as Medical Expenses

Face masks and other Personal Protective Equipment to prevent the spread of COVID-19 are tax-deductible and Amounts Paid for Certain PPEs' are being treated as Medical Expenses.


The Internal Revenue Service issued Announcement 2021-7 today - April, 5th - clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses.


The amounts paid for personal protective equipment are also eligible to be paid or reimbursed under health Flexible Spending Arrangements (health FSAs), Archer Medical Savings Accounts (Archer MSAs), Health Reimbursement Arrangements (HRAs), or Health Savings Accounts (HSAs).

購買個人防護用品的支出,也可以通過靈活開支帳戶(Health FSA),Archer醫療儲蓄帳戶(Archer MSAs),健康還款合約(HRA)或健康儲蓄帳戶(HSA)進行支付或者退款。

Group health plans, including health FSAs and HRAs, under the terms of which expenses for COVID-19 PPE may not be reimbursed, may be amended pursuant to this announcement to provide for reimbursements of expenses for COVID-19 PPE incurred for any period beginning on or after January 1, 2020, and such an amendment will not be treated as causing a failure of any reimbursement to be excludable from income.


Group health plans may be amended pursuant to this announcement if the amendment is adopted not later than the last day of the first calendar year beginning after the end of the plan year in which the amendment is effective, no amendment with retroactive effect is adopted after December 31, 2022, and the plan is operated consistent with the terms of the amendment, including during the period beginning on the effective date of the amendment through the date the amendment is adopted.


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