Luis Alvarez | DigitalVision | Getty Images
Americans can get a tax break on masks, hand sanitizer, disinfectant wipes, and other personal protective equipment this filing season to help prevent the spread of Covid-19, the IRS said on Friday.
The tax code allows taxpayers to deduct medical expenses that exceed 7.5% of their adjusted gross income per year. The IRS counts the cost of PPE as a medical expense that is eligible for the tax break.
More from Personal Finance:
Filing separately can help in obtaining a tax break for the unemployed
Student loan borrowers may face a higher tax burden this year
It’s harder to avoid reporting income from online sales
For example, individuals with an income of $ 100,000 in 2020 can deduct medical expenses greater than $ 7,500 from their tax bill. You need to list your taxes to take advantage of this.
Expenses reimbursed by the insurance are not eligible.
PSA costs may be paid or reimbursed in certain tax-privileged medical accounts, according to the IRS. These include health savings accounts, flexible health spending accounts, Archer medical savings accounts, and healthcare reimbursement schemes. Taxpayers typically have two and a half months after year-end to spend unused FSA funds. According to the December Relief Act, employers can extend this grace period to up to 12 months.