Here’s good news. The CARES Act reinstated the ability of health reimbursement arrangements (HRAs) to reimburse and deduct the cost of over-the-counter drugs and added a new deduction for menstrual care products.
The changes apply retroactively (yes, retroactively) to amounts paid after December 31, 2019.
As you likely know, individual taxpayers who itemize their medical tax deductions may not deduct over-the-counter products. Such taxpayers may deduct prescribed drugs only.
But thanks to CARES Act Section 3702, beginning in 2020 and later, HRAs, ... Log in to view full article.