§139D Indian Health Care Benefits

Summary

You do not have to count the value of certain Indian health care benefits as taxable income, except where the law says otherwise. The rule covers four kinds of benefits: health services paid for by the Indian Health Service through grants, contracts, or IHS-funded third-party programs; medical care paid for or reimbursed by an Indian tribe or tribal organization for a tribal member (and their spouse or dependent); accident or health insurance or plans provided by a tribe for a member (and their spouse or dependent); and other tribal medical care that replaces or adds to Federal Indian health programs. Short definitions: "Indian tribe" — meaning in section 45A(c)(6). "Tribal organization" — meaning in section 4(l) of the Indian Self-Determination and Education Assistance Act. "Medical care" — same as in section 213. "Accident or health insurance/plan" — same as in section 105. "Dependent" — meaning in section 152 (with certain parts ignored). You cannot use this exclusion if the same benefit is already excluded from income or deducted elsewhere in the tax code.