Congress Considers Bill To Make Fitness Tax Deductible

-Source-Forbes- Headed to the gym this summer? You may soon be able to claim a tax benefit for the trip. The House Ways and Means Committee has advanced a bill which would grant taxpayers a break on gym memberships and fitness classes. Gym memberships are not generally deductible even though many taxpayers are under the impression that the opposite is true: Its a question Ive been asked for years. Under current law weight loss programs and fitness classes are only tax deductible as a treatment for a diagnosed disease or condition and must be specifically ordered by your doctor. If you meet that criteria its considered a medical expense and may be deductible. You can only deduct medical expenses which exceed 7.5 of your adjusted gross income (AGI) if you itemize on Schedule A (you can see what Schedule A might look like in 2018 here). The latest bill is known as the Personal Health Investment Today (PHIT) Act or PHIT Act. The bill H. R. 6312 was introduced by Rep. Jason Smith (R-MO) who proposed a nearly identical bill last year. Under the bill taxpayers who itemize their deductions could add qualified sports and fitness expenses to the definition of qualified medical expenses. Qualified sports and fitness expenses include membership at a fitness facility participation or instruction in a program of physical exercise or physical activity (so that Pilates lesson youve been meaning to take) or related safety equipment. The amount that could be claimed under the PHIT Act cannot exceed $500 ($1000 for married taxpayers and heads of household) for memberships and classes and $250 for safety equipment both adjusted for inflation. But all sports programs are not created equal: The deduction would not be available for golf hunting sailing or riding which under the bill shall not be treated as a physical exercise or physical activity." Additionally qualified sports and fitness expenses would not include videos books or similar materials (so no deduction for Sweatin to the Oldies).