This bill — known as the PHIT Act — would allow individuals to pay for a gym membership, exercise classes, or related equipment for themselves or their dependants using funds from a tax-preferred health savings account (HSA) or flexible spend account (FSA). The overall limitation on such tax-preferred expenses would be $500 annually (or twice that for a joint return or head of household), while the limit for safety equipment would be $250 annually. These amounts would be adjusted for inflation and rounded to the nearest $10 each year.
Golfing, hunting, sailing, and riding wouldn’t be considered qualified physical activities. Memberships at facilities offering those activities, or at private clubs owned and operated by members, wouldn’t be qualified. Exercise videos, books, or similar materials wouldn’t be considered qualified exercise equipment.
This legislation would take effect for taxable years beginning after December 31, 2018.
The bill’s full title is the Personal Health Investment Today (PHIT) Act.