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Health Care Sharing Ministry

An organization where people with shared ethical or religious beliefs contribute money to help each other pay for medical expenses, rather than through traditional insurance.

Medical Expense (for tax purposes)

Costs related to the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, which can be deducted from taxable income if they exceed a certain percentage of adjusted gross income.

Internal Revenue Code of 1986

The main body of federal tax law in the United States, which outlines rules for taxation, deductions, and credits.

Taxable Year

The annual accounting period for which income tax returns are filed, usually a calendar year for individuals.

Section 213(d)(1)

A specific part of the tax code that defines what counts as 'medical care' for the purpose of deducting medical expenses.

Section 7702C

A new section being added to the tax code by this bill, which clarifies how health care sharing ministries are treated for tax purposes.