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AB 1282 would create state deduction for out‑of‑pocket medical costs up to $5,000 through 2030; committee refers bill to suspense file
Summary
Assemblymember Gonzales introduced AB 1282 to allow a state tax deduction for out‑of‑pocket medical expenses of up to $5,000 through 2030. The sponsor said the deduction addresses medical debt and affordability pressures; the bill was referred to the committee’s suspense file.
Assemblymember Gonzales presented AB 1282, which would create a state tax deduction for out‑of‑pocket medical costs capped at $5,000 until 2030.
Gonzales said California’s high cost of living and medical debt justify additional tax relief. He cited measures of poverty and medical debt presented in testimony, including a 31.1% rate of Californians living at or near poverty noted in studies referenced during the hearing and that 38% of Californians face medical debt. Gonzales said the federal itemized deduction threshold (medical expenses in excess of 7.5% of federal adjusted gross income) does not sufficiently help many low‑income families and that AB 1282 would provide targeted relief.
No witnesses from organized opposition appeared. Committee members thanked the author for presenting the bill; Member McKenna and others expressed support. Chair Gibson announced the measure would be referred to the suspense file for fiscal review.
