Sec. 104. Deduction for qualified health insurance costs of individuals
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Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: In the case of an individual, there shall be allowed as a deduction an amount equal to the amount paid during the taxable year for coverage for the taxpayer, his spouse, and dependents under qualified health insurance. In the case of any taxpayer for any taxable year, the deduction under subsection
(a)shall not exceed an amount that would cause the taxpayer’s Federal income tax liability to be reduced by more than the average value of the national health exclusion for employer-sponsored insurance as determined by calculating the value of the exclusion for each household followed by calculating the average of those values. For purposes of this section, the term qualified health insurance has the meaning given such term by section 36B(e). Any amount paid by a taxpayer for insurance to which subsection
(a)applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 162(l) or 213(a). Any amount taken into account in determining the credit allowed under section 35 or 36B shall not be taken into account for purposes of this section. The deduction allowable by reason of this section shall not be taken into account in determining an individual’s net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2. . Subsection
(a)of section 62 of such Code is amended by inserting before the last sentence the following new paragraph: The deduction allowed by section 224. . The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as an item relating to section 225 and inserting before such item the following new item: Sec. 224. Costs of qualified health insurance. . The amendments made by this section shall apply to taxable years beginning after December 31, 2013.