What This Bill Does
This bill changes the federal tax code to let individuals deduct (reduce their taxable income by) the cost of health insurance premiums. The deduction would apply to insurance that covers medical care for the taxpayer, their spouse and their dependents.
Who It Affects
Individuals who pay for health insurance premiums.
Key Provisions
• Individuals can deduct amounts they pay for health insurance that covers medical care for themselves, their spouse and their dependents (Sec. 1(a)).
• This deduction is allowed "above-the-line," meaning taxpayers can claim it even if they don't itemize other deductions (meaning they take the standard deduction instead) (Sec. 1(b)).
• Health insurance premiums already deducted under this new rule cannot be deducted again or used to claim other tax benefits (Sec. 1(a)).
What Changes
If this bill becomes law, individuals would be able to reduce their taxable income by the amount they pay for health insurance premiums without having to itemize deductions on their tax return.
Important Definitions
Medical care is defined by reference to section 213(d) of the Internal Revenue Code. Not specified in bill text what that definition includes.
Effective Date
The changes apply to taxable years beginning after December 31, 2022.
I
118TH CONGRESS
1ST SESSION
H. R. 109
To amend the Internal Revenue Code of 1986 to allow an above-the-line
deduction for health insurance premiums.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 9, 2023
Mr. BIGGS introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow an
above-the-line deduction for health insurance premiums.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. DEDUCTION FOR HEALTH INSURANCE PRE-
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MIUMS.
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(a) IN GENERAL.—Part VII of subchapter B of chap-
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ter 1 of the Internal Revenue Code of 1986 is amended
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by redesignating section 224 as section 225 and by insert-
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ing after section 223 the following new section:
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•HR 109 IH
‘‘SEC. 224. DEDUCTION FOR HEALTH INSURANCE PRE-
1
MIUMS.
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‘‘In the case of an individual, there shall be allowed
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as a deduction for the taxable year amounts paid by the
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taxpayer for insurance which constitutes medical care (as
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defined in section 213(d)) for the taxpayer and the tax-
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payer’s spouse and dependents. No amount allowed as a
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deduction under the preceding sentence shall be taken into
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account in determining any deduction or credit otherwise
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allowable to the taxpayer (or any other taxpayer) under
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this chapter.’’.
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(b) DEDUCTION ALLOWED WHETHER OR NOT INDI-
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VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a)
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of section 62 of such Code is amended by inserting before
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the last sentence at the end the following new paragraph:
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‘‘(22) DEDUCTION
FOR
HEALTH
INSURANCE
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PREMIUMS.—The deduction allowed by section
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224.’’.
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(c) CLERICAL AMENDMENT.—The table of sections
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for part VII of subchapter B of chapter 1 of such Code
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is amended by redesignating the item relating to section
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224 as an item relating to section 225 and by inserting
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after the item relating to section 223 the following new
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item:
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‘‘Sec. 224. Deduction for health insurance premiums.’’.
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•HR 109 IH
(d) EFFECTIVE DATE.—The amendments made by
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this section shall apply to taxable years beginning after
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December 31, 2022.
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Æ
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