Addiction Recovery through Family Deductions Act

To amend the Internal Revenue Code of 1986 to expand the family members with respect to whom treatment for alcohol and drug addiction is treated as a medical expense for certain purposes. 1. Short title This Act may be cited as the Addiction Recovery through Family Deductions Act 2. Expansion of family members with respect to whom treatment for alcohol and drug addiction is a medical expense for certain purposes (a) Deduction for medical care Section 213(d) (12) Alcohol and drug addiction treatment for family members (A) In general In the case of any expense paid for alcohol and drug addiction treatment for a specified family member of the taxpayer, such expense shall be treated for purposes of this section in the same manner as an expense paid for alcohol and drug addiction treatment for a dependent (within the meaning of subsection (a)) of such taxpayer. (B) Specified family member For purposes of this paragraph, the term specified family member (i) any individual who bears a relationship to the taxpayer described in section 152(d)(2), (ii) any first cousin of the taxpayer (or the taxpayer’s spouse), and (iii) the spouse of any individual described in clause (i) or (ii). (C) Alcohol and drug addiction treatment For purposes of this paragraph, the term alcohol and drug addiction treatment . (b) Health insurance costs of self-Employed individuals Section 162(l) of such Code is amended by adding at the end the following new paragraph: (1) Insurance covering alcohol and drug addiction treatment for family members In the case of alcohol and drug addiction treatment (as defined in section 213(d)(12)(C)) for a specified family member (as defined in section 213(d)(12)((B)) of the taxpayer, such treatment shall be treated for purposes of this section in the same manner as if such treatment were for a dependent of such taxpayer. . (c) Indian health care benefits Section 139D of such Code is amended by adding at the end the following new subsection: (g) Alcohol and drug addiction treatment for family members In the case of alcohol and drug addiction treatment (as defined in section 213(d)(12)(C)) for a specified family member (as defined in section 213(d)(12)((B)) of a member of an Indian tribe, such treatment shall be treated for purposes of this section in the same manner as such treatment for a dependent of such a member. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Addiction Recovery through Family Deductions Act This bill amends the Internal Revenue Code to expand certain deductions and exclusions to include expenses related to alcohol and drug addiction treatments for specified family members who are not dependents. The bill allows the expenses to be treated as: (1) medical care for the purpose of the deduction for medical care, and (2) qualified Indian health care benefits for the purpose of the exclusion from gross income of the value of any qualified Indian health care benefit. The bill also allows insurance covering alcohol and drug addiction treatment for the non-dependent family members to be treated as insurance that constitutes medical care for the purpose of the deduction for health-insurance costs of self-employed individuals.