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.

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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.1

But thanks to CARES Act Section 3702,2 beginning in 2020 and later, HRAs, ... Log in to view full article.