Personal income taxes: unemployment insurance: fitness benefit.
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 changes California state income tax law to allow employees to deduct qualified fitness benefits provided by their employers. ‘Qualified fitness benefits’ include fees for gym memberships, wellness program expenses, and certain fitness tracking device subsidies, up to a maximum of $600 per year. The bill also adjusts the definition of ‘wages’ for unemployment insurance purposes to exclude these fitness benefits, effectively exempting them from taxation.
Key provisions
- Allows a deduction for ‘qualified fitness benefits’ provided by employers to employees on state income tax returns.
- Defines ‘qualified fitness benefit’ to include gym memberships, wellness program expenses, and fitness device subsidies.
- Limits the annual deduction for qualified fitness benefits to $600.
- Excludes qualified fitness benefits from the definition of ‘wages’ for unemployment insurance purposes.
- Requires the Franchise Tax Board to report on the number of taxpayers claiming the fitness benefit deduction annually.
Who is affected
- Employees
- Employers
- Taxpayers
- The Franchise Tax Board
Notable changes
- Expands the definition of deductible expenses on state income tax returns to include fitness benefits.
- Modifies the unemployment insurance definition of ‘wages’ to exclude fitness benefits.
Bill text
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Sponsors
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1 on record
Primary sponsor
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