On September 10, 2021, the IRS issued a statement reminding taxpayers that the cost of home testing for COVID-19 is an eligible medical expense under health flexible spending arrangements (HFSAs), Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), or Archer Medical Savings Accounts (Archer MSAs). The cost to diagnose COVID-19 is an eligible medical expense for tax purposes. Additional information can be found on IRS.gov.
The IRS also reminds us that the costs of personal protective equipment (PPE), such as masks, hand sanitizers, and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses under HFSAs, HSAs, HRAs, and Archer MSAs. The cafeteria plan may need to be amended for this particular provision. Additional information can be found on IRS.gov and our blog about IRS PPE guidance.
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