SB 0420 Authorizes state income tax deduction for self-employed individual's health ins. costs if not deductible federally
LR Number:S1599.02I Fiscal Note:1599-02
Committee:Ways and Means
Last Action:03/23/99 - Hearing Cancelled S Ways & Means Committee Journal page:
Effective Date:January 1, 1999
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Current Bill Summary

SB 420 - This act allows a state income tax deduction for health insurance costs of a self-employed individual for himself, his spouse and dependents to the extent the amounts qualify for deduction under the Internal Revenue Code but which are not deducted on the taxpayer's federal return.

Current federal law permits federal deduction for such costs equal to 60% in 1999, 2000, and 2001, 70% in 2002, and 100% in 2003 and thereafter. This act permits the deductions of the remaining amounts of allowable health insurance costs if the taxpayer does not deduct them on his or her federal income tax return. The remaining amounts can be taken as an itemized medical expense on the federal return, subject to the 7.5% of adjusted gross income floor. This act requires the taxpayer to deduct from the amount of any federal itemized deductions the amount claimed as a state deduction.