This bill amends the existing law regarding income tax deductions for unreimbursed or uncompensated medical care expenses, expanding eligibility to taxpayers of all income levels. The previous requirement that limited the deduction based on adjusted gross income and filing status has been removed. Instead, taxpayers can now claim a deduction equal to the total medical expenses paid during the taxable year for themselves, their spouse, or dependents, provided these expenses are not reimbursed by insurance and are not included in itemized deductions. Additionally, the bill introduces new provisions requiring taxpayers to report the deduction amount to the department and mandates that the deduction be included in the tax expenditure budget.

The bill also clarifies definitions related to medical care expenses, including what constitutes "medical care," "medical care expenses," and "physician." Notably, it expands the definition of medical care expenses to include insurance premiums for long-term care and other specified medical services. The changes will take effect for taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-2-37