# Plain Language Summary of H.R. 111

This bill would let people deduct their health insurance premiums directly from their taxable income, similar to how some other expenses are already treated. Right now, most people can't deduct what they pay for health insurance unless they're self-employed or meet specific conditions. If this bill passes, anyone could subtract their health insurance costs before calculating how much federal income tax they owe, which would lower their tax bill.

The key advantage here is that this deduction would work "above the line," which is tax-speak for saying you get it whether or not you itemize deductions on your tax return. Most people take the standard deduction rather than itemizing, so this change would actually benefit them. Currently, if you don't itemize, you can't deduct health insurance costs at all. Under this bill, you could deduct premiums you pay for yourself, your spouse, and your dependents without having to itemize anything else.

The practical impact would be that families paying for health insurance out of their own pockets would see their taxable income reduced by whatever they spent on premiums. For example, if a family pays $8,000 per year for health insurance and is in the 22% tax bracket, they could potentially save around $1,760 in federal taxes. The bill would take effect for tax years starting after December 31, 2024, meaning people would first see the benefit when filing their 2025 taxes in 2026.

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

Biggs, Andy

<p>This bill provides a tax deduction for health insurance premiums paid to provide medical insurance coverage for an individual, the individual’s spouse, and the individual’s dependents. Under the bill, the tax deduction may be claimed as an adjustment to income (also known as an above-the-line tax deduction), which does not require the individual to itemize deductions.&nbsp;</p>