IRS Says COVID-19 Tests Legitimate Medical Expense

Chris Gaetano
Published Date:
Sep 13, 2021

The IRS announced that take-home COVID-19 tests are legitimate medical expenses for tax purposes. This means that the cost of such tests can be paid or reimbursed under health flexible spending arrangements (health FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), or Archer medical savings accounts (Archer MSAs). 

The IRS also reminded 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 eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, HRAs, or Archer MSAs. Additional information is available on

The IRS announcements came shortly after the White House announced a sweeping new mandate that requires businesses with more than 100 employees to have all their workers either vaccinated, or, failing that, to produce negative test results every week. An at-home COVID-19 test can cost between $109 and $155 out of pocket. If someone took one such test every week, over the course of the year, that person will have spent between $5,668 and $8,060. 

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