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.