At-Home COVID Tests Are Eligible Medical Expenses, the IRS Says

As COVID-19 testing markedly expands under President Biden’s recently announced six-point national strategy, people who use at-home tests may be able to have their out-of-pocket costs covered in full.

  • The costs of home COVID-19 tests are eligible medical expenses, the IRS says, making them reimbursable under FSAs or HSAs and tax-deductible for some taxpayers.
  • To be eligible for a tax deduction, your total unreimbursed medical and dental costs must exceed 7.5% of your income.
  • Demand for at-home tests is surging along with the Delta variant, which has led to supply constraints and calls to ramp up production.

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