The IRS has issued announcement 2021-7, which clarifies that the purchase of personal protective equipment for the primary purpose of preventing the spread of coronavirus are deductible medical expenses for individual taxpayers. This includes items such as masks, hand sanitizer and sanitizing wipes.
As a result, the announcement confirms that these amounts are qualified medical expenses eligible to be paid or reimbursed without being included in gross income under health flexible spending arrangements (health FSAs), Archer medical savings accounts (Archer MSAs), health reimbursement arrangements (HRAs), or health savings accounts (HSAs).
The announcement also notifies administrators of group health plans regarding the ability to make certain plan amendments pursuant to the announcement
