Are COVID-19 Tests and PPE Tax Deductible?

Nashua, NH Resident Looks for Tax Savings

The IRS has stated that COVID-19 home testing kits can be considered a medical expense under the tax code.  Personal protective equipment (PPE) that is used primarily for preventing the spread of COVID-19 also falls under this tax code.  This includes masks, hand sanitizer and sanitizing wipes.  However, to be eligible for deducting these items on your taxes the total for all medical and dental expenses must exceed 7.5% of your adjusted gross income.

A Nashua resident was totaling up the amount of money spent in the past year on COVID-19 supplies, from home-testing kits to masks and sanitizer.  Curious if this could be considered a deduction on his taxes, he contacted the team at Merrimack Tax Associates.

When Can Medical Expenses Be Deducted

These items for preventing the spread of COVID-19 do fall under the tax code as considered a medical expense.  This is not deductible on your taxes in all cases.  In order to be deducted, all eligible medical or dental expenses must exceed 7.5% of your adjusted gross income. 

To determine if you qualify for this deduction, you can include medical and dental expenses for your spouse and dependents that you claim on your tax return.  If you have a parent or other dependent that could have been claimed on your taxes except that their income exceeded $4,300, you can include any COVID-19 prevention items within your total medical expenses that you purchased for them.

If you are taking advantage of this tax deduction, you will want to make sure that you have all of the documentation to support it.  This includes receipts from the purchase of the COVID-19 home testing kits and assorted PPE.

The Nashua resident was below the threshold to claim these items on his taxes.  While this may not work for his next tax filing, he is happy to now have the information about how the deduction of medical expenses can work to reduce taxes.