What kind of deductions can be taken as a result of COVID-19
Announcement 2021-7 was issued on March 26th indicating expenses for medical aids used to prevent the spread of coronavirus were allowed on the 2020 return. These expenses include masks, hand sanitizer and sanitizing wipes.
If you have a health savings account (HSA, Archer MSA, HRA or health FSA), the cost of these items would also be considered eligible for reimbursement.
How do I enter my COVID-19 related expenses?
To claim these COVID-19 expenses:
- Federal Section
- Itemized Deductions
- Medical and Dental Expenses
- Medical Aids
The total of all medical expenses must exceed 7.5% of your income before they are calculated into your medical deduction on the itemized deduction worksheet.