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HB 5067

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN UNREIMBURSED MEDICAL EXPENSES.

2026 Regular Session Introduced by Donna Veach

Connecticut bill allowing residents to deduct unreimbursed medical expenses from state income taxes to reduce burden of out-of-pocket healthcare costs.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · HB 5067

Legislative bill overview

HB 5067 would create a state income tax deduction for Connecticut residents who incur unreimbursed medical expenses that exceed a certain threshold. This allows taxpayers to reduce their taxable income by qualifying out-of-pocket healthcare costs not covered by insurance or reimbursement programs. The bill aims to provide tax relief to residents facing significant medical financial burdens.

Why is this important

Medical expenses are a leading cause of financial hardship for American households, and Connecticut residents with chronic conditions or catastrophic health events face substantial out-of-pocket costs. By allowing a tax deduction, the state would provide modest relief to affected individuals, though the benefit primarily accrues to those with sufficient income tax liability to benefit from deductions. This represents a policy choice about how government should help manage healthcare affordability challenges.

Potential points of contention

  • Revenue impact: The deduction would reduce state tax revenue, requiring either spending cuts elsewhere or tax increases on other groups
  • Benefit distribution: Tax deductions primarily benefit higher-income earners who itemize deductions and have sufficient tax liability; lower-income residents may see minimal or no benefit
  • Threshold definition: The specific dollar amount triggering eligibility (typically a percentage of income, like the federal 7.5% threshold) will significantly affect who qualifies and total cost

Compiled from official sources — confirm details with the bill’s official record.

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