NC H295

Allows North Carolina taxpayers to deduct qualified health care sharing expenses as part of their itemized deductions for medical and dental expenses under state income tax law.

Defines "qualified health care sharing expenses" as total payments made by a taxpayer to a health care sharing organization toward member health care expenses that were not reimbursed, including administrative expenses.

Requires health care sharing expenses to exceed 10% of the taxpayer's adjusted gross income before they can be deducted, consistent with existing medical expense deduction requirements.

References the definition of "health care sharing organization" from G.S. 58-49-12, restricting the deduction to recognized health care sharing entities.

Effective for taxable years beginning on or after January 1, 2018.