AB 995

This bill creates a refundable individual income tax credit for costs incurred by

an individual for medical debt, which is defined as debt incurred by a claimant for

medical or health-related costs attributable to the care and treatment of the

claimant's spouse in the year in which the spouse dies, or in the prior year. The

definition of medical debt includes respite, hospice, and palliative care. Under the

bill, the maximum credit that a claimant may claim is $10,000. No individual may

claim the credit more than once, and no credit is allowed if the claimant's federal

adjusted gross income exceeds $100,000 or if the claimant is married and files a joint

return. Because the credit is refundable, if the amount of the claim for which a

claimant is eligible exceeds the claimant's tax liability, the difference will be paid to

the claimant by check.