AB 1831, as introduced, Conway. Personal income tax: deduction: medical insurance.
The Personal Income Tax Law provides for various deductions in computing the income that is subject to the taxes imposed by that law including a deduction for that portion of medical expenses that is more than 10%, or for certain taxpayers 7.5%, of adjusted gross income. Self-employed individuals may deduct health insurance premiums for medical expenses incurred by the taxpayer in lieu of the itemized deduction for medical expenses.
This bill, for taxable years beginning on or after January 1, 2014, would allow a deduction from gross income under the Personal Income Tax Law for the amounts paid or incurred by a taxpayer during the taxable year for medical insurance for medical care, as defined, and for transportation for and essential to that medical care, as provided. The bill would not allow as an itemized deduction, and amount allowed as a deduction from gross income as provided in the bill.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17072 of the Revenue and Taxation Code
2 is amended to read:
(a) Section 62 of the Internal Revenue Code, relating
4to adjusted gross income defined, shall apply, except as otherwise
5provided.
6(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating
7to certain expenses of elementary and secondary school teachers,
8shall not apply.
9(c) Section 62(a)(21) of the Internal Revenue Code, relating to
10attorneys fees relating to awards to whistleblowers, shall not apply.
11(d) Section 62(a) of the Internal Revenue Code is modified to
12additionally provide that the amount allowed as a deduction under
13Section 213(d)(1)(D) of
the Internal Revenue Code shall be allowed
14as a deduction for purposes of computing adjusted gross income,
15except as otherwise provided.
16(1) For purposes of this subdivision, Section 213(d)(1)(D) of
17the Internal Revenue Code is modified to provide that the phrases
18“(including amounts paid as premiums under part B of title XVIII
19of the Social Security Act, relating to supplementary medical
20insurance for the aged)” and “or for any qualified long-term care
21insurance contract (as defined in section 7702B(b))” shall not
22apply.
23(2) Any amount allowed as a deduction under this subdivision
24shall not be allowed as an itemized deduction under Section 63 of
25the Internal Revenue
Code, relating to taxable income defined, as
26applicable, for purposes of this part.
27(3) This subdivision shall apply to taxable years beginning on
28or after January 1, 2014.
This act provides for a tax levy within the meaning of
30Article IV of the Constitution and shall go into immediate effect.
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