IRS Treats Face Masks, Hand Sanitizers, and Sanitizing Wipes as Qualified Medical Expenses

On March 26, 2021, the IRS released Announcement 2021-7 that provides that amounts paid for personal protective equipment for the primary purpose of preventing the spread of COVID-19, such as masks, hand sanitizer and sanitizing wipes for use by the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent(s) are treated as amounts paid for medical care under § 213(d) of the Internal Revenue Code. As such, these amounts can be reimbursed by a health flexible spending arrangement, a health reimbursement arrangement or a health savings account.

OCA will be automatically amending our clients Health FSA plans to include PPE as qualified medical expenses. Should an employer wish to not include PPE as an eligible expense, please contact OCA directly to opt out.