Personal Income Tax Law: credits: medical expenses.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a new deduction for California taxpayers on their personal income tax returns. It allows individuals to deduct up to $5,000 in out-of-pocket medical expenses paid or incurred during the taxable year, beginning in 2025. The deduction is intended to help offset the rising costs of healthcare.
Key provisions
- Allows a deduction for out-of-pocket medical costs.
- The deduction is limited to $5,000 per year.
- The deduction applies to taxable years beginning on or after January 1, 2025.
- The deduction is available until December 1, 2030.
- The Franchise Tax Board must report data on the number of taxpayers using the deduction and the average deduction amount annually.
- The bill includes specific goals and performance indicators for the deduction.
- The deduction is intended to address rising healthcare costs.
- The bill conforms to federal income tax laws.
Who is affected
- Taxpayers in California
- Individuals with medical expenses
- The California Franchise Tax Board
Notable changes
- Introduces a new deduction for medical expenses.
- Establishes a limit on the amount of the deduction.
Bill text
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Sponsors
Official sponsors from legislative records.
3 on record
Primary sponsor
Cosponsors
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