Rep. Carnevale Proposes Tax Deductions for Medical Expenses

Even for those Rhode Islanders who have health insurance, or who are able to rely on Medicare, health care costs for long-term care and for those with disabilities can be very imposing.

“Especially for those individuals who are living on a fixed income, or whose income is low, out-of-pocket medical and dental bills can represent a significant portion of what they have to live on,” said Rep. John M. Carnevale (D-Dist. 13, Providence, Johnston).

Representative Carnevale has introduced legislation that, as is allowed on federal tax returns, would allow a Rhode Island personal income tax deduction on non-covered medical and dental expenses incurred during any taxable year. The deduction would apply to expenses for a taxpayer, taxpayer’s spouse or dependent children.

Similar to the federal tax provision, such deductions would be allowable to the extent that such expenses exceed 7.5 percent of adjusted gross income.

“Medical expenses that exceed 7.5 percent of adjusted gross income is admittedly a pretty high number for most working people with health insurance, even those with multiple doctor visits or even some hospitalization,” said Representative Carnevale. “This legislation is mainly aimed at the less well-off members of society, at those elderly folks living on a fixed income who need extensive medical attention or long-term care, for families with a member who is developmentally disabled and needs special services.”

 “Applying this deduction will not break the state’s bank, but it could ease some of the financial burden on the elderly and frail residents of our state,” said Representative Carnevale.

The legislation, 2013-H 5373, has been referred to the House Committee on Finance. It is co-sponsored by Rep. Scott A. Slater (D-Dist. 10, Providence), Rep. Samuel A. Azzinaro (D-Dist. 37, Westerly), Rep. Raymond A. Hull (D-Dist. 6, Providence) and Rep. Scot J. Guthrie (D-Dist. 28, Coventry).

“For some of these individuals, a little bit of savings on the Rhode Island income tax could mean the ability to pay for the medicine they need, or put food on their table. I believe the good this kind of deduction will do for some people outweighs any revenue loss to the state,” he said.