Home Testing for COVID-19 is an Eligible Medical Expense

The cost of home testing for COVID-19 is an eligible medical expense that can be paid or reimbursed under health flexible spending arrangements, health savings accounts, or Archer medical savings accounts, the IRS recently published.The IRS also reminds taxpayers that the costs of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19, are also eligible medical expenses.

In 2021, you can only deduct medical expenses that are above 7.5% of your AGI.  That means that if your AGI is $30,000, you would have to have medical expenses in excess of $2,250 in order to deduct on your Schedule A.  Also all of your itemized deductions would need to rise above the standard deduction.

Having a competent tax professional help you navigate the complexities of taxes can and will save you money in the long run!