Staying Fit
If you're still scrambling for tax deductions, here's one you may have overlooked: the cost of hand sanitizers, masks and other personal protective equipment (PPE) you bought to protect yourself from COVID-19.
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Deducting medical expenses
Normally, you can't deduct nonprescription medical expenses (except insulin), and you can't deduct most items for general health, such as dental floss or vitamins. But Congress has made an exception for items you buy to protect your health during the pandemic.
The Internal Revenue Service says that any amount you paid for PPE with the primary purpose of preventing the spread of COVID-19 is deductible as a medical expense. If you stocked up on disinfectant wipes, for example, you could use those costs as a medical expense on your 2020 federal income tax return. Similarly, you can deduct out-of-pocket costs for masks, gloves and other PPE. You could also deduct the cost of diagnostic services, such as COVID-19 testing fees.
There are two big hurdles to overcome with medical deductions. The first is you that your itemized deductions need to be higher than the standard deduction. Otherwise, itemizing deductions won't reduce your taxes (or increase your refund) as much as the standard deduction would.
For single taxpayers and for married taxpayers filing separately, the 2020 standard deduction is $12,400. People who file as head of household have an $18,650 standard deduction, and those who are married and filing jointly have a $24,800 standard deduction. The standard deduction is even higher if you are 65 or older.
