Plain English Breakdown
The effective date is listed as immediate, but the deduction applies only to future tax years starting in 2025.
AB-1282: Deduction for Out-of-Pocket Medical Costs
This law allows taxpayers to subtract up to $5,000 of defined out-of-pocket medical costs from their income when calculating state taxes for years between January 1, 2025, and before January 1, 2030.
What This Bill Does
- Allows a deduction in computing taxable income for out-of-pocket medical costs as defined by the bill.
- Limits the total amount of this deduction to $5,000 per tax year.
- Applies only to tax years starting on or after January 1, 2025, and before January 1, 2030.
- Includes required goals, performance indicators, and data collection details for the new tax expenditure.
Who It Names or Affects
- Taxpayers who have out-of-pocket medical costs during the specified years.
Limits and Unknowns
- The provided text states that medical costs are 'as defined' but does not list exactly which expenses count.
- The specific goals, performance indicators, and data collection methods required by the bill are mentioned as included in the legislation but their details are not described here.