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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      House Committee on Ways and Means
    IntroducedJuly 6th, 2018

What is it?

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.

Impact

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

Cost

A CBO cost estimate is unavailable.

More Information

In-DepthSponsoring 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:

Summary by Eric Revell

(Photo Credit: iStock / Wavebreakmedia)

AKA

Personal Health Investment Today Act

Official Title

To amend the Internal Revenue Code of 1986 to treat certain amounts paid for physical activity, fitness, and exercise as amounts paid for medical care.