# Plain Language Summary: Health Insurance Premium Deduction Bill

This bill would let people deduct their health insurance premiums directly from their taxable income, similar to how some other expenses are handled on tax returns. Right now, most people can't deduct what they pay for health insurance unless they're self-employed or have specific circumstances. This change would allow anyone to subtract their health insurance costs before calculating how much tax they owe, which could lower their tax bill.

The key benefit here is that this deduction would be available to everyone, regardless of whether they itemize deductions or take the standard deduction. Currently, most people take the standard deduction (a flat amount everyone can deduct), which means they can't also deduct their insurance premiums. This bill creates a special exception so you could deduct your health insurance premiums on top of the standard deduction. The deduction would cover premiums you pay for yourself, your spouse, and your dependents.

For example, if you pay $5,000 a year for health insurance and you're in the 22% tax bracket, this deduction could save you around $1,100 in taxes. The savings would be larger for people in higher tax brackets and those who pay more for insurance. The bill would take effect for tax years beginning after December 31, 2022, meaning it could apply to your 2023 taxes and beyond if it becomes law.

To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for health insurance premiums.

Biggs, Andy

 <p>This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.</p>