California SB1137 allows a tax deduction for medical expenses exceeding 4% of adjusted gross income for low-income taxpayers.

California SB1137 amends the Revenue and Taxation Code to allow a tax deduction for medical expenses exceeding 4% of adjusted gross income for qualified taxpayers starting in 2026. The deduction is capped at $5,000 and applies to individuals with adjusted gross income not exceeding 300% of the federal poverty level who do not itemize medical care costs under the Internal Revenue Code. The bill also mandates a report on the deduction's impact by February 1, 2030, and repeals the provision on December 1, 2031.

California SB1137 allows a tax deduction for medical expenses exceeding 4% of adjusted gross income for low-income taxpayers.

California SB1137 amends the Revenue and Taxation Code to allow a tax deduction for medical expenses exceeding 4% of adjusted gross income for qualified taxpayers starting in 2026. The deduction is capped at $5,000 and applies to individuals with adjusted gross income not exceeding 300% of the federal poverty level who do not itemize medical care costs under the Internal Revenue Code. The bill also mandates a report on the deduction's impact by February 1, 2030, and repeals the provision on December 1, 2031.