Health Equity Act of 2013

To amend the Internal Revenue Code of 1986 to provide for equity relating to medical costs. 1. Short title This Act may be cited as the Health Equity Act of 2013 2. Deduction for health insurance costs in computing self-employment taxes made permanent (a) In general Subsection (l) of section 162 of the Internal Revenue Code of 1986 is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2012. 3. Deduction for qualified health insurance costs of individuals (a) In general Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: 224. Costs of qualified health insurance (a) In general In the case of an individual, there shall be allowed as a deduction an amount equal to the amount paid during the taxable year for coverage for the taxpayer, his spouse, and dependents under qualified health insurance. (b) Qualified health insurance For purposes of this section— (1) In general The term qualified health insurance (2) Exception (A) In general Paragraph (1) shall not apply to insurance substantially all of the coverage of which is of excepted benefits described in section 9832(c). (B) Vision and dental benefits allowed Subparagraph (A) shall not apply to benefits described in section 9832(c)(2)(A). (c) Special rules (1) Coordination with medical deduction, etc Any amount paid by a taxpayer for insurance to which subsection (a) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 162(l) or 213(a). Any amount taken into account in determining the credit allowed under section 35 or 36B shall not be taken into account for purposes of this section. (2) Deduction not allowed for self-employment tax purposes The deduction allowable by reason of this section shall not be taken into account in determining an individual’s net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2. . (b) Deduction allowed in computing adjusted gross income Subsection (a) of section 62 of such Code is amended by inserting before the last sentence the following new paragraph: (22) Costs of qualified health insurance The deduction allowed by section 224. . (c) Clerical amendment The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as an item relating to section 225 and inserting before such item the following new item: Sec. 224. Costs of qualified health insurance. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2012. 4. Fitness programs, athletic clubs, fitness equipment, and weight loss programs treated as medical care (a) Tax benefits using definition of medical care Subsection (d) of section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (12) Fitness programs, athletic clubs, fitness equipment, weight loss programs (A) In general An amount paid in connection with a membership in a fitness program or athletic club, fitness equipment, or weight loss program shall be treated as an amount paid for medical care. (B) Limitation The amount taken into account under subsection (a) by reason of subparagraph (A) for any taxable year shall not exceed $1,200. . (b) Flexible spending arrangements and health reimbursement arrangements Section 106 of such Code is amended by adding at the end the following: (g) Fitness programs, athletic clubs, fitness equipment, weight loss programs For purposes of this section and section 105— (1) In general Reimbursement for expenses incurred for membership in a fitness program or athletic club, fitness equipment, or weight loss program shall be treated as a reimbursement for medical expenses. (2) Limitation The amount taken into account under paragraph (1) for any taxable year shall not exceed $1,200. . (c) Effective date The amendments made by this section shall apply to amounts paid in taxable years beginning after December 31, 2012.

Summary: Health Equity Act of 2013 - Amends the Internal Revenue Code to: (1) make permanent the tax deduction allowed to self-employed individuals for health insurance costs; (2) allow a new tax deduction for the health care insurance costs of a taxpayer, the taxpayer's spouse, and dependents; and (3) expand the tax deduction for medical expenses to include costs for a membership in a fitness program or athletic club, fitness equipment, or weight loss program up to $1,200 in a taxable year and allow tax-free reimbursements for such expenses up to $1,200 a year under flexible spending arrangements and health reimbursement arrangements.