II
111th CONGRESS
1st Session
S. 207
IN THE SENATE OF THE UNITED STATES
January 12, 2009
Mrs. Boxer introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for health insurance premiums.
Short title
This Act may be cited as the
Health Insurance Tax Relief
Act
.
Deductibility of health insurance premiums
Allowance of deduction
In general
Subsection (a) of section 213 of the Internal Revenue Code of 1986 (relating to medical, dental, etc., expenses) is amended to read as follows:
Allowance of deduction
There shall be allowed as a deduction the following amounts not compensated for by insurance or otherwise—
the amount by which the amount of expenses paid during the taxable year (reduced by the amount deductible under paragraph (2)) for medical care of the taxpayer, the taxpayer’s spouse, and the taxpayer’s dependents (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) exceeds 7.5 percent of adjusted gross income, plus
so much of the expenses paid during the taxable year for insurance which constitutes medical care under subsection (d)(1)(D) (other than for a qualified long-term care insurance contract) for such taxpayer, spouse, and dependents as does not exceed $2,000 ($4,000 in the case of a joint return).
.
Limitation based on adjusted gross income
Section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Limitation with respect to certain medical insurance premiums
The amount of the deduction allowed by subsection (a)(2) (determined without regard to this subsection) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer's adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).
.
Deduction allowed whether or not taxpayer itemizes deduction
Section 62(a) of the Internal Revenue Code of 1986 (defining adjusted gross income) is amended by inserting after paragraph (21) the following new paragraph:
Health insurance premiums
The deduction allowed by section 213(a)(2).
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2008.