I

106TH CONGRESS

2D SESSION H. R. 4799

To amend the Internal Revenue Code of 1986 to allow individuals a credit

against income tax for medical expenses for dependents.

IN THE HOUSE OF REPRESENTATIVES

JUNE 29, 2000

Mr. PAUL introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow individuals a credit against income tax for medical expenses

for dependents.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Family Health Tax

5 Cut Act’’.

6 SEC. 2. CREDIT FOR MEDICAL EXPENSES FOR DEPEND7 ENTS.

8 (a) IN GENERAL.—Subpart A of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of

10 1986 (relating to nonrefundable personal credits) is
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1 amended by inserting after section 25A the following new

2 section:

3 ‘‘SEC. 25B. MEDICAL EXPENSES FOR DEPENDENTS.

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in5 dividual, there shall be allowed as a credit against the tax

6 imposed by this chapter for the taxable year an amount

7 equal to the expenses paid during the taxable year, not

8 compensated for by insurance or otherwise, for medical

9 care for any dependent of the taxpayer.

10 ‘‘(b) LIMITATIONS.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), the credit allowed by this section shall not

13 exceed $500 per dependent for any taxable year.

14 ‘‘(2) INCREASED CREDIT FOR TERMINAL DIS15 EASES, ETC.—In the case of expenses for medical

16 care of a dependent who has a terminal disease, can17 cer (whether or not in remission), a disability, or

18 any other health condition requiring hospitalization

19 or other forms of specialized care, the credit allowed

20 by this section shall not exceed $3,000 for each such

21 dependent for any taxable year.

22 ‘‘(c) DEFINITIONS.—For purposes of this section—

23 ‘‘(1) MEDICAL CARE.—The term ‘medical care’

24 has the meaning given such term by section 213.
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1 ‘‘(2) DEPENDENT.—The term ‘dependent’ has

2 the meaning given such term by section 152.

3 ‘‘(3) DISABILITY.—The term ‘disability’ means

4 a condition that requires qualified long-term care

5 services (as defined in section 7702B(c)).

6 ‘‘(d) EXCLUSION OF AMOUNTS ALLOWED FOR CARE

7 OF CERTAIN DEPENDENTS.—Any expense allowed as a

8 credit under section 21 shall not be treated as an expense

9 paid for medical care under this section.

10 ‘‘(e) REGULATIONS.—The Secretary shall prescribe

11 regulations to carry out this section, including regulations

12 providing for claiming the credit under this section on

13 Form 1040EZ.’’

14 (b) CLERICAL AMENDMENT.—The table of sections

15 for such subpart A is amended by inserting after the item

16 relating to section 25A the following new item:

‘‘Sec. 25B. Medical expenses for dependents.’’

17 (c) DENIAL OF DOUBLE BENEFIT FOR MEDICAL EX18 PENSES DEDUCTION.—Subsection (e) of section 213 of

19 such Code is amended by inserting ‘‘or 25B’’ after ‘‘sec20 tion 21’’.

21 (d) EFFECTIVE DATE.—The amendments made by

22 this section shall apply to amounts paid after the date of

23 the enactment of this Act in taxable years ending after

24 such date.

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