§139D Indian Health Care Benefits

Summary

You do not have to count the value of qualified Indian health care benefits as taxable income, with some exceptions. Qualified benefits include four types of care: services paid or provided by the Indian Health Service through grants, contracts, compacts, or funded third‑party programs; medical care given or paid for by an Indian tribe or tribal organization to a tribal member (including a spouse or dependent) or reimbursed to them; accident or health insurance or plans provided by a tribe or tribal organization for members (including spouses and dependents); and other tribal medical care that replaces or supplements federal tribal medical programs. Key terms: Indian tribe — as defined in section 45A(c)(6). Tribal organization — as defined in the Indian Self-Determination and Education Assistance Act. Medical care — same meaning as in section 213. Accident or health insurance/plan — same meaning as in section 105. Dependent — as defined in section 152 (with certain subsections ignored). The exclusion above does not apply to any part of a benefit that is already excluded from income by another tax rule or that the beneficiary may deduct under another tax rule.