@meloncholy31 wrote:
Hi, since the last post was Dec 2020 can anyone provide an update on whether there are any updates in regards to tax code changes that allow HCSM monthly cost to be included in itemized deductions either this year or next year?
As best I can tell, the expected date for a final determination was September 2021 but no final determination on the rule has actually been made. Probably they will blame COVID and all the COVID-related tax law changes for slowing down the rule making process (not unreasonable, perhaps).
https://www.regulations.gov/docket/IRS-2020-0016/unified-agenda
https://www.federalregister.gov/documents/2020/06/10/2020-12213/certain-medical-care-arrangements
As of now, HSMs are not considered insurance.
The proposed regulation will take effect for the tax year ending after the regulation becomes final. So if the regulation became final on 12/31/21, it would apply for all of 2021, or if the regulation became final anytime in 2022, it would be effective for all of 2022.
But, it is not final yet.
Also note, the proposed regulation was drafted in response to an executive order by President Trump issued in 2019. I don't know whether any of the orders issued by President Biden directly contradict this order, but it is possible the IRS (and federal government in general) aren't necessarily excited to push the remaining fragments of the previous president's agenda.
