Bill > A01048

This bill amends New York state tax law to provide an expanded personal income tax deduction for medical expenses starting in the tax year 2025. Specifically, the bill allows taxpayers to deduct medical expenses beyond the current regulations by creating a new calculation method. Under this new provision, taxpayers can calculate qualifying medical expenses by first multiplying their federal adjusted gross income by 2.5%, and then subtracting that amount from their total medical-related expenses for the year. Importantly, the deductible medical expenses now explicitly include premiums paid for health and accident insurance, as well as long-term care insurance. This means New York taxpayers will have more flexibility in claiming medical expense deductions, potentially reducing their state tax burden by allowing a broader range of medical-related costs to be considered. The bill is designed to provide financial relief to taxpayers by recognizing the significant expenses many individuals and families incur for healthcare and insurance coverage.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1048