Money spent on masks and sanitizers can be deducted from taxes for 2020: how to do it
'31.03.2021'
Olga Derkach
Throughout the year, Americans have been stocking up on hand sanitizer, cleaning wipes and face masks to fight the spread of COVID-19, and now the IRS has said these costs can be deducted from taxable income. How to do this, the publication said. Market Watch.
The IRS said all of these items and other personal protective equipment used to slow the transmission of COVID-19 are considered non-taxable medical expenses.
This is good news considering that sales of hand sanitizers grew 624% from 2019 to 2020 to $ 1,45 billion in 2020.
The IRS announcement is important for those who take not a standard deduction, but a customized one, that is, they list all their expenses that can be deducted from taxable income. These include, in addition to mortgage interest and tuition fees, medical expenses (including the purchase of masks and sanitizers).
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When it comes to medical expenses, the IRS states that a person can only deduct medical expenses that exceed 7,5% of the taxpayer's adjusted gross income. Other eligible medical expenses include doctor visits, inpatient care, and medication. Personal protective equipment associated with COVID-19 is also a qualified health care tax deductible.
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If you take the standard deduction of $ 12 for individuals and $ 400 for jointly filing couples, there is no additional deduction for these costs. But there are exceptions. In February, the IRS said teachers may not include in taxable income their expenses for hand sanitizer, mask, and personal protective equipment up to $ 24. A teacher can take advantage of the standard deduction and still receive a deduction for the teacher's expenses.
There is one more option. Employers may offer a Flexible Spending Account (FSA), which allows an employee to deposit money before taxes and use it to cover qualified medical expenses that may not be covered by the health plan. Contribution limits for 2020 were $ 2.
HSA (Health Savings Account) is another tax benefit account. This is combined with high deductible health plans that provide at least $ 1 per person and $ 400 per couple. The HSA contribution limit is $ 2 for individuals and $ 800 for couples per year.
