Should Expenses for Gym Memberships, Exercise Classes, and Youth Sports be Tax Deductible? (H.R. 6312)

What is H.R. 6312?

(Updated July 31, 2020)

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.

Argument in favor

This commonsense, bipartisan bill would make it easier for Americans to sign up for gym memberships, exercise classes, or pay for their children’s school sports and fight obesity by allowing funds from tax-preferred health savings accounts to be used for such purchases.

Argument opposed

While gym memberships, exercise classes, and youth sports are all great ways to fight obesity there’s no need to allow those things to be purchased with funds from a tax-preferred health savings account. Americans can use their after tax dollars to pay for them if they want to.

Impact

Americans with gym memberships, enrolled in exercise classes or sports programs, or who buy exercise equipment; and the IRS.

Cost of H.R. 6312

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Jason Smith (R-MO) introduced this bill to give relief to taxpayers by letting them use tax-preferred health savings accounts to pay for gym memberships or exercise programs:

“This bill will help our children get active by allowing people to use tax preferred accounts to cover the cost of their children’s sports programs.”

This legislation passed the House Ways and Means Committee on a 28-7 vote and has the support of two bipartisan cosponsors, including Reps. Ron Kind (D-WI) and Brian Fitzpatrick (R-PA).

Media:

• House Ways and Means Committee Press Release
  
• Bustle
  
• Forbes
  
• PHIT America (In Favor)