Medical Debt Tax Relief Act

Bill: 115-hr-5493
Sponsor: full_name: Rep. Johnson, Sam [R-TX-3]
Introduced: 2018-04-12
Policy area: Taxation
Subjects: Debt collection

Health care costs and insurance

Income tax exclusion

Long-term, rehabilitative, and terminal care

Tax administration and collection, taxpayers

Transportation costs
Latest action: action_date: 2018-04-18
text: Sponsor introductory remarks on measure. (CR H3403)

Summaries:
action_date: 2018-04-12
action_desc: Introduced in House
text: <p><b>Medical Debt Tax Relief Act </b></p> <p>This bill amends the Internal Revenue Code to exclude from gross income the discharge of medical indebtedness. The bill applies to the discharge of debt incurred by the taxpayer for expenses of the taxpayer or the spouse or a dependent of the taxpayer for: (1) diagnosis, cure, mitigation, treatment, or prevention of disease; (2) the purpose of affecting any structure or function of the body; (3) transportation primarily for and essential to medical care, or (4) long-term care services.</p>

tv_txt: I 115th CONGRESS 2d Session H. R. 5493 IN THE HOUSE OF REPRESENTATIVES April 12, 2018 Mr. Sam Johnson of Texas (for himself and Mr. Larson of Connecticut ) 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 exclude from income discharge of medical indebtedness.

1. Short title This Act may be cited as the Medical Debt Tax Relief Act . 2. Exclusion of discharge of medical indebtedness (a) In general Section 108 of the Internal Revenue Code of 1986 is amended— (1) in subsection (a)(1), by striking or in subparagraph (D), by striking the period at the end of subparagraph (E) and inserting , or , and by adding at the end the following new subparagraph: (F) the indebtedness discharged is qualified medical indebtedness. , and (2) by adding at the end the following new subsection: (j) Qualified medical indebtedness (1) In general For purposes of this section, the term qualified medical indebtedness means indebtedness which was incurred by an individual for— (A) diagnosis, cure, mitigation, treatment, or prevention of disease of the taxpayer or the spouse or a dependent of the taxpayer, or for the purpose of affecting any structure or function of the body of the taxpayer or the spouse or a dependent of the taxpayer, (B) for transportation primarily for and essential to medical care referred to in subparagraph (A), or (C) for qualified long-term care services for the taxpayer or the spouse or a dependent of the taxpayer. (2) Additional rules Rules similar to the rules of paragraphs (2), (5), (8), (9), and (11) of section 213(d) shall apply for purposes of this subsection. (3) Terms used in section 213 For purposes of this subsection, any term also used in section 213(d)(1) shall have the same meaning as when used in such section. . (b) Effective date The amendments made by this section shall apply with respect to indebtedness discharged after the date of enactment of this Act.