As giant retailers prepare to offer cheap, at-home COVID-19 tests in the wake of President Biden’s new vaccine rules for employers, the Internal Revenue Service has sent a reminder that the cost of home testing for COVID-19 is an eligible medical expense.
The cost can be paid or reimbursed under health flexible spending arrangements, health savings accounts, health reimbursement arrangements, or Archer medical savings accounts.
Amazon, Kroger, and Walmart are each reportedly set to soon offer at-home, rapid tests with no retailer price markups, the administration said.
Biden has announced a nationwide mandate for American employers with 100 or more workers to ensure their workforce is entirely vaccinated or undergoing weekly testing. Some Republicans have promised to challenge the mandate.
The IRS added that costs of personal protective equipment — such as masks, hand sanitizer, and sanitizing wipes — are similarly eligible expenses if used primarily to prevent the spread of COVID.
