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H.R. 138119th CongressIn committeeLatest action Jan 3, 2025Decoded by AI · checked against the record
Official title: Lowering Costs for Caregivers Act of 2025
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
Starting in 2025, you can use HSA, FSA, HRA, or Archer MSA funds tax-free to pay a parent's or in-law's medical bills.
50-second read · 4 questions answered below
This bill lets people use money from tax-advantaged health accounts — HSAs, FSAs, HRAs, and Archer Medical Savings Accounts — to pay medical expenses for a parent or parent-in-law. Right now, those accounts can only be used tax-free for yourself, your spouse, and your dependents. Parents are generally not included unless they qualify as tax dependents, and this bill removes that restriction.
This affects working adults who help pay healthcare costs for a parent or parent-in-law and want to use pre-tax dollars from their health accounts to do so. The change applies to medical costs paid or incurred after December 31, 2024.
People who cover a parent's medical bills would be able to use pre-tax dollars from these accounts, which reduces the portion of that spending subject to income tax. Parents who are not tax dependents would now be included, which is a broader group than current law allows.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Ways and Means.