Are Face Masks Tax Deductible?

The Internal Revenue Service (IRS) allows tax deductions for the cost of face masks, but the rules differ for personal and business use. Individuals may be able to deduct the cost as a medical expense. For businesses, the cost of masks is treated as a standard operational expense.

Deducting Masks as a Personal Medical Expense

The IRS treats the cost of personal protective equipment (PPE), including face masks, hand sanitizer, and sanitizing wipes, as a medical expense when purchased to prevent the spread of disease. This allows individuals to deduct the amount paid for these items for themselves, their spouse, and their dependents under Section 213 of the Internal Revenue Code.

Qualifying for this deduction has two main requirements. First, you must itemize deductions rather than taking the standard deduction. Many taxpayers find the standard deduction is higher than their total itemized deductions, which include things like state and local taxes, mortgage interest, and charitable contributions. If the standard deduction provides a greater tax benefit, you cannot deduct the cost of face masks.

The second requirement is the Adjusted Gross Income (AGI) threshold. Taxpayers can only deduct the amount of total medical expenses that exceeds 7.5% of their AGI. For example, if your AGI is $60,000, the threshold is $4,500. If your total qualifying medical expenses were $5,000, you could only deduct $500. Costs reimbursed by a Health Savings Account (HSA), Flexible Spending Arrangement (FSA), or Health Reimbursement Arrangement (HRA) cannot be deducted.

Deducting Masks as an Ordinary and Necessary Business Expense

For self-employed individuals, independent contractors, and business owners, deducting the cost of face masks is more straightforward. These costs can be deducted as a business expense if they meet the “ordinary and necessary” standard. An ordinary expense is common and accepted in your trade or business, while a necessary expense is helpful and appropriate for your business.

A business purchasing masks for its employees to wear on the job can deduct the cost. A sole proprietor, such as a consultant who buys masks to wear when meeting clients, can also deduct the cost. These expenses are not subject to the 7.5% AGI floor that applies to personal medical expense deductions.

The deduction is claimed against the business’s gross income, reducing the taxable profit. This applies to sole proprietorships, partnerships, and corporations. For example, a graphic designer who works from a home office with no in-person client contact would have difficulty justifying masks as a business expense.

Claiming the Deduction on Your Tax Return

The tax form used to claim the deduction depends on whether it is a personal or business expense. Proper record-keeping is required to substantiate the claim in either case.

To claim the cost as a personal medical expense, you must report the total amount on Schedule A (Form 1040), Itemized Deductions. The cost of masks is combined with all other qualifying medical expenses, like doctor’s visits and prescription drugs. The 7.5% AGI limitation is applied on Schedule A to calculate the final deductible amount.

Self-employed individuals and single-member LLCs report business expenses on Schedule C (Form 1040), Profit or Loss from Business. The cost of face masks and other PPE is typically included in the “Other expenses” category. It is important to keep receipts that separate these purchases from personal spending.