Your COVID Face Masks Are Good for a Tax Break, the IRS says

Great news if your disposable masks have been eating up your disposable income.

Mother putting on face mask on young child

FamVeld / Shutterstock

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By Sigrid Forberg Mar. 27, 2021

You know those face masks and face shields that have become a standard part of your going-out look over the last year? And all that hand sanitizer and those sanitizing wipes you've been buying — whenever you can find that stuff?

The masks, sanitizing gels and other protective gear you purchased last year, to keep yourself safe from COVID, is tax-deductible on your 2020 return, the IRS has announced.

So if you’ve yet to file your taxes, you might be able to recoup some of what it cost to arm yourself against the pandemic.

How does this tax break work?

Woman using computer and binder to file her taxes — Andrey_Popov / Shutterstock

On Friday, the tax agency clarified that whatever taxpayers spent on personal protective equipment to help prevent the spread of COVID — including masks, hand sanitizer or sanitizing wipes — qualifies as deductible medical care expenses on tax returns.

So, the money you or other members of your household paid for those materials in 2020 may be claimed when you submit your taxes this year, provided that none of the costs were reimbursed by an insurance company.

But in order to get the write-off, you'll need to itemize deductions, and your medical expenses for the year must exceed 7.5% of your adjusted gross income. That's your taxable income before itemized deductions have been subtracted.

It's estimated that fewer than 10% of taxpayers will itemize deductions on their 2020 returns. The 2017 tax law signed by President Donald Trump bulked up the standard deduction and made it much more difficult to itemize.

But if that's something you're still able to do, medical expenses — including what you spent to protect against COVID — might help you get a larger tax refund. Note that you may have to wait a while for that money, because the IRS is struggling with a massive backlog of returns.

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What if you need your refund money ASAP?

Portrait of a concentrate young couple looking at their home expenses — Lucky Business / Shutterstock

If you’re pressed for cash and can't wait for the tax agency to come through with you refund, here are a few options if you need more money right now.

Cut the cost of your debt. Credit cards are convenient, but interest is a killer. If you’ve been relying on plastic to get you through the pandemic, you might make your debt easier to shoulder — and unload sooner — by folding your credit card balances into a single debt consolidation loan at lower interest.
Slash your insurance bills. Car insurance companies have been handing out discounts to drivers who are out on the road less amid the pandemic. Not yours? Sounds like it’s time to shop around for a better deal. And while you’re looking, why not also save hundreds on homeowners insurance by comparing rates to find a lower price?
Reduce your mortgage payments by refinancing. If you haven’t looked around for a lower interest rate on your home loan in the last year, you're overdue. Rates are still historically low and refinancing your existing mortgage could reap big savings. An estimated 11.1 million U.S. homeowners could reduce their monthly house payments by an average $277 through a refi, according to mortgage tech and data provider Black Knight.
Trim your budget and “make your own” tax refund By finding a few creative ways to cut back, you could rearrange your budget to find a few hundred dollars. Instead of ordering in for date night, enjoy a refreshing cocktail and make dinner together. Have a hobby or special talent? Turn it into a side hustle to bring in extra income. And, download a free browser extension that will automatically scour for better prices and coupons whenever you shop online.

Compare car insurance and save up to $500 a year

If you haven't compared car insurance recently, you're probably paying too much for your policy. Getting quotes from multiple insurers used to be time-consuming, but today's technology makes it easy.

Using a free site like Pretected is easy and could help you save up to $500 a year on car insurance. In mintues, their "smart matching" system will provide tailor-made quotes from insurers that can meet all of your coverage needs - and your budget.

Stay protected on the road and find more affordable car insurance in minutes with Pretected.

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