IRS rule address tax treatment of certain medical arrangements
The Internal Revenue Service yesterday released proposed regulations addressing the treatment of direct primary care arrangements, health care sharing ministry memberships and certain government-sponsored health care programs under section 213 of the Internal Revenue Code.
Section 213 allows individuals to take an itemized deduction for medical care and insurance expenses that exceed 7.5% of adjusted gross income. Among other provisions, the proposed regulations clarify that payments for direct primary care arrangements and health care sharing ministry memberships are expenses for medical care under section 213, and that health reimbursement arrangements generally may reimburse employees for these payments.
The proposed regulations responds to an executive order last June. IRS will accept comments on the proposed rule for 60 days after its publication in the June 10 Federal Register.