HB22-1163 Summary

• Allows individuals to claim a state income tax deduction for qualifying out-of-pocket medical expenses (including dental expenses) for tax years 2023-2029, if not claimed federally, reimbursed from medical savings accounts, or covered by insurance.

• Defines "qualifying medical expenses" as those meeting Internal Revenue Code Section 213 requirements, excluding the 7.5% federal adjusted gross income threshold limitation.

• Applies to medical care expenses for the taxpayer, spouse, or dependents and automatically repeals effective July 1, 2031.

• General Assembly declares that Coloradans spend millions annually on out-of-pocket health care costs expected to grow nearly 10% per year, and that up to 500,000 Coloradans may lose Medicaid coverage.

• Establishes purpose as providing tax relief for taxpayers with qualifying medical expenses, with effectiveness measured by the number of taxpayers claiming the deduction.