US Federal 2023-2024 Regular Session

US Federal House Bill HB109

Introduced
1/9/23  

Caption

This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.

Impact

The implications of this bill are significant as it seeks to ease the financial burden of health insurance costs on individuals and families. By allowing above-the-line deductions, HB 109 would make it easier for taxpayers to reduce their taxable income, potentially leading to a lower overall tax bill. This change could incentivize more individuals to maintain health insurance coverage, as the deductible nature of premiums may lead to increased affordability for those who previously struggled with high costs.

Summary

House Bill 109 proposes an amendment to the Internal Revenue Code of 1986, allowing individuals to claim an above-the-line deduction for health insurance premiums. This provision aims to provide tax relief to taxpayers by enabling them to deduct amounts paid for medical care insurance for themselves, their spouses, and their dependents. Importantly, this deduction would be available to taxpayers regardless of whether they itemize other deductions, broadening access to tax benefits related to health insurance.

Contention

While the bill is poised to benefit many taxpayers, there may be points of contention regarding its impact on government revenue. Opponents could argue that such deductions may lead to a decrease in federal tax revenue, complicating budgetary processes. Additionally, some may express concerns that the provision primarily benefits those who are already financially stable, effectively excluding lower-income individuals who might not have the means to pay for health insurance premiums in the first place. Overall, while the bill aims at improving healthcare accessibility through tax relief, its economic consequences warrant careful examination.

Companion Bills

No companion bills found.

Previously Filed As

US HB11

This bill provides a tax deduction for health insurance premiums paid to provide medical insurance coverage for an individual, the individual’s spouse, and the individual’s dependents. Under the bill, the tax deduction may be claimed as an adjustment to income (also known as an above-the-line tax deduction), which does not require the individual to itemize deductions. 

US A4864

Allows gross income taxpayers to claim deduction for certain losses for which federal theft loss deduction is allowed.

US SB00056

An Act Establishing A Personal Income Tax Deduction For Public Benefit Charges Paid By Taxpayers On Their Utility Bills.

US S2945

Allows tax credit for expenses incurred for medical insurance premiums and deductible payments for certain taxpayers under gross income tax.

US SB35

Homeowners Premium Tax Reduction Act of 2025 This bill establishes a new deduction of up to $10,000 claimed against gross income (above-the-line tax deduction) for annual policy premiums paid or incurred for homeowners insurance on an individual's principal residence. 

US A885

Provides $5,000 gross income tax deduction for taxpayers who incur certain commuter expenses.

US HF435

A bill for an act creating a deduction available against the individual income tax for gross rent paid by a taxpayer, and including applicability provisions.

US A173

Provides gross income tax deduction for amounts paid to taxpayers for sale of certain real property interests for conservation purposes.

US S672

Provides gross income tax deduction for amounts paid to taxpayers for sale of certain real property interests for conservation purposes.

US HB07269

An Act Establishing A Personal Income Tax Deduction For A Portion Of The Rent Paid By Certain Taxpayers For A Primary Residence In The State.

Similar Bills

No similar bills found.