BILL NUMBER: AB 1831	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Conway

                        FEBRUARY 18, 2014

   An act to amend Section 17072 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17072 of the Revenue and Taxation Code is
amended to read:
   17072.  (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
   (b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
   (c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.

   (d) Section 62(a) of the Internal Revenue Code is modified to
additionally provide that the amount allowed as a deduction under
Section 213(d)(1)(D) of the Internal Revenue Code shall be allowed as
a deduction for purposes of computing adjusted gross income, except
as otherwise provided.  
   (1) For purposes of this subdivision, Section 213(d)(1)(D) of the
Internal Revenue Code is modified to provide that the phrases "
(including amounts paid as premiums under part B of title XVIII of
the Social Security Act, relating to supplementary medical insurance
for the aged)" and "or for any qualified long-term care insurance
contract (as defined in section 7702B(b))" shall not apply. 

   (2) Any amount allowed as a deduction under this subdivision shall
not be allowed as an itemized deduction under Section 63 of the
Internal Revenue Code, relating to taxable income defined, as
applicable, for purposes of this part.  
   (3) This subdivision shall apply to taxable years beginning on or
after January 1, 2014. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.