A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Plain English Breakdown

The official source material does not provide information on whether this deduction applies to all types of health insurance plans or if it affects other aspects of Indiana's tax law.

Health Insurance Premium Deduction

This bill allows Indiana taxpayers who have health insurance and pay their own premiums to deduct those costs from their income tax.

What This Bill Does

• Allows taxpayers with health insurance to subtract the cost of their premiums from their adjusted gross income for tax purposes.
• Applies this deduction for the year when the taxpayer paid the premiums.

Who It Names or Affects

• People who have health insurance and pay premiums out-of-pocket.
• Taxpayers in Indiana.

Terms To Know

Premium

The amount of money paid regularly to keep a health insurance plan active.

Adjusted Gross Income (AGI)

A person's total income minus certain deductions, used for calculating taxes.

Limits and Unknowns

• Does not specify if the deduction applies to all types of health insurance plans.
• The bill has passed both chambers but does not have an effective date yet.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Income tax deduction for health insurance premiums.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Income tax deduction for health insurance premiums.

Provides that a taxpayer who is covered by a health insurance plan may deduct from the taxpayer's adjusted gross income an amount equal to the total amount of premiums on the health insurance plan the taxpayer paid for coverage during the taxable year.