Amounts paid for PPE used to prevent the spread of COVID-19 are considered medical expenses under the Internal Revenue Code. Therefore, amounts paid by an individual for PPE that are used by the taxpayer, the taxpayer`s spouse or dependants, and that are not compensated by insurance or otherwise, are deductible, provided that the taxpayer`s total medical expenses exceed 7.5% of the adjusted gross income. Eligible educators can deduct unreimbursed expenses for PPE items such as face masks, sanitizers, hand soap, hand sanitizer, disposable gloves, social distancing tape or paint, physical barriers such as plexiglass, air purifiers, and other items recommended by the CDC to prevent the spread of COVID-19. The rules allow eligible educators to deduct up to $250 in eligible expenses per year or $500 (but not more than $250 each) if the spouses file a joint return and both spouses are eligible educators. This is an end-of-line deduction, which means it is also available to taxpayers who do not report their deductions. Teachers can claim a deduction on Form 1040, Form 1040-SR or Form 1040-NR (also Schedule 1 (Form 1040)). For more information, see the instructions for Forms 1040 and 1040-SR or the instructions for Forms 1040-NR. For more information, please contact your tax advisor at Cherry Bekaert. For more information on determining the deductible, see Can I deduct my medical and dental expenses? and Publication 502, Medical and Dental Expenses. The IRS guide can help teachers who are looking for a way to safely reopen their classrooms. “The educator deduction rules allow eligible educators to deduct up to $250 in eligible expenses per year ($500 if both spouses file jointly and both spouses are eligible educators, but no more than $250),” the IRS said. “Registered educators include all persons who receive at least 900 hours of instruction in a school year for at least 900 hours in a school from kindergarten to grade 12.” The tax deduction applies to expenses paid or incurred during the taxation year. It applies to unreimbursed expenses paid or incurred after March 12, 2020 for PPE, disinfectants and other consumables used to prevent the spread of COVID-19 in the classroom.

The Internal Revenue Service today issued Notice 2021-7PDF, which clarifies that purchasing personal protective equipment such as masks, hand sanitizers, and disinfectant wipes for the primary purpose of preventing the spread of the coronavirus are deductible medical expenses. The Internal Revenue Service has issued guidance on how educators can deduct expenses for personal protective equipment to protect teachers in the classroom during the pandemic. The IRS has provided a safe haven under which “eligible educators” can deduct unreimbursed expenses for COVID-19 protective items as expenses for educators under Article 62(a)(2)(D) (Rev. Proc. 2021-15). COVID-19 protection items include, but are not limited to: In addition, amounts paid for PPE are considered eligible expenses under a Flexible Health Expense Account (“FSA”), Health Savings Account (“HA”), Health Care Reimbursement Agreement (“HRA”) and Archer Medical Savings Account (“Archer MSA”). Therefore, parents who need to purchase these items for their children`s return to school can use their FSA, HSA, HRA or Archer MSA health accounts to make purchases or submit a refund request for previously purchased items. The Consolidated Appropriation Act, 2021, P.L. 116-260, required the IRS to clarify that unreimbursed expenses paid or incurred after March 12, 2020 by eligible educators for protective items to stop the spread of COVID-19 are expenses set out in s. 62 (a) (2) (D) (ii) eligible for deduction of costs for educators.

Eligible educators include all individuals who are teachers, teachers, counsellors, principals or assistants in a school for at least 900 hours in a school year for at least 900 hours from kindergarten to grade 12. The tax deduction applies to expenses paid or incurred during the taxation year and to unrefunded expenses paid or incurred after March 12, 2020. The deduction can be claimed on Form 1040, U.S. Personal Income Tax Return.