IRS reminder for COVID‑19 tests and PPE
COVID-19 home testing kits and certain PPE are eligible medical expenses.
On September 10, 2021, the Internal Revenue Service (IRS) issued a reminder, IR-2021-181, that COVID-19 home testing kits are eligible for reimbursement under health care flexible spending arrangements (health care FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs) and Archer medical savings accounts (Archer MSAs).
With COVID-19 cases on the rise in many communities, the IRS also reminded taxpayers that personal protective equipment (PPE) used for the purpose of preventing the spread of COVID-19 are eligible medical expenses reimbursable under FSAs, HSAs, HRAs, or Archer MSAs, including:
- Hand sanitizer
- Sanitizing wipes
COVID-19 home testing kits and other items used to prevent the spread of COVID-19 are available on the Optum Store.
Health savings accounts (HSAs) are offered or administered by Optum Bank®, Member FDIC, or ConnectYourCare, LLC, each a subsidiary of Optum Financial. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account. Flexible spending accounts/arrangements (FSAs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Adoption Reimbursement Plans, Tuitions Reimbursement Plans, Surrogacy Reimbursement Plans, Lifestyle Plans, COBRA Benefits, and all other account types are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, “Optum Financial”) and are subject to eligibility and restrictions. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions. Federal and state laws and regulations and the design of your plan are subject to change.
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