The Cost of Home Testing Kits for Covid-19 is an Eligible, Reimbursable Medical Expense, IRS Says

The arrival of the omicron variant of the coronavirus has caused a surge of cases in the U.S, resulting in a demand for testing sites with longer lines,  and flooded hospitals. The emergence of overt the counter at home Covid-19 testing kits has provided many Americans with the convenience of learning their status, without a trip to a clinic.

If you purchased an at home testing kit or personal protective equipment, the Internal Revenue Service reminds taxpayers that those costs for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, HRAs, or Archer MSAs.

In a written statement, The IRS said the at-home testing kits and PPE are eligible to be covered because, “The cost to diagnose COVID-19 is an eligible medical expense for tax purposes.” PPE includes items such as hand sanitizer, masks, and sanitizing wipes that are used for the primary purpose of preventing the spread of COVID-19.

While reimbursement costs of preventing the spread of Covid-19 should be taken advantage of, Jean Marmande of South Louisiana Financial Services in Houma highlights the many benefits of Health Savings Accounts.  “An HSA offers triple tax savings. You can contribute pre-tax dollars, pay no taxes on earnings, and withdraw the money tax-free now or in retirement to pay for qualified medical, dental and vision expenses. You never lose the money, and you can even use the money you save for non-medical expenses after age 65 with no penalties,” Marmande said.

For more information visit https://www.irs.gov/newsroom/irs-cost-of-home-testing-for-covid-19-is-eligible-medical-expense-reimbursable-under-fsas-hsas