Bill Details
View committees (1)
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill creates a new tax deduction for health insurance premiums that lowers a taxpayer’s taxable income whether or not they itemize deductions. In plain terms, people who pay for health insurance for themselves, their spouse, or their dependents could subtract the amount they paid from their income on their tax return before calculating tax. The deduction applies to payments for insurance that qualifies as medical care under current tax rules. The bill also clarifies that any amount claimed under this new deduction cannot be counted again for other tax deductions or credits, so taxpayers cannot use the same premium payment twice to reduce their taxes in different ways. The change is written into the Internal Revenue Code so it fits with existing tax rules, and it would take effect for tax years that start after December 31, 2024.
- Who benefits: Individual taxpayers who pay health insurance premiums for themselves, their spouse, or dependents.
- How it works: The premium amounts are an “above-the-line” deduction, meaning they reduce taxable income even if you do not itemize deductions.
- Limits on double claims: Premiums claimed here cannot also be used for other tax deductions or credits.
- Timing: The deduction applies to tax years beginning after December 31, 2024.
Official Summaries
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.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 111 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 111
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 3, 2025
Mr. Biggs of Arizona 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. DEDUCTION FOR HEALTH INSURANCE PREMIUMS.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 224
as section 225 and by inserting after section 223 the following new
section:
``SEC. 224. DEDUCTION FOR HEALTH INSURANCE PREMIUMS.
``In the case of an individual, there shall be allowed as a
deduction for the taxable year amounts paid by the taxpayer for
insurance which constitutes medical care (as defined in section 213(d))
for the taxpayer and the taxpayer's spouse and dependents. No amount
allowed as a deduction under the preceding sentence shall be taken into
account in determining any deduction or credit otherwise allowable to
the taxpayer (or any other taxpayer) under this chapter.''.
(b) Deduction Allowed Whether or Not Individual Itemizes Other
Deductions.--Subsection (a) of section 62 of such Code is amended by
inserting before the last sentence at the end the following new
paragraph:
``(22) Deduction for health insurance premiums.--The
deduction allowed by section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by redesignating the
item relating to section 224 as an item relating to section 225 and by
inserting after the item relating to section 223 the following new
item:
``Sec. 224. Deduction for health insurance premiums.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
<all>