Exemption & Deferral Program Changes for 2022

‚ÄčThe 2021 Legislature passed Substitute House Bill 1438 that allows applicants for the property tax exemption & deferral programs to deduct additional health care related expenses.  This bill is effective for property tax relief starting in calendar year 2022. 

Special Notice: Issued by Washington State Department of Revenue (Dated Sept. 9, 2021)

 

Deductions for tax relief in calendar year 2022 and after:

Claimants applying for property tax relief in calendar years 2022 and after may deduct the following non-reimbursed amounts if paid by them or their spouse or domestic partner:

Legally prescribed drug costs.

Home health care expenses.

Nursing home, boarding home, assisted living, or adult family home expenses.

Medicare Parts A, B, C, and D insurance premiums.

Additional new deductions are listed below.


Additional new deductions allowed by Substitute House Bill 1438:

Expand each section for further details.

   Medicare supplemental/Medigap insurance premiums.

RCW 84.36.383

Medicare supplemental insurance premiums - amounts paid that were not reimbursed, are now deductible. Provide copies of statements identifying insurance company, plan number, and premiums paid.

Medicare.gov maintains a search engine of the approved policies based on zip code. 

Click HERE for the search engine.  (To see if your policy qualifies, enter your zip code.) 

The document you provide to support your Medicare Supplemental/Medigap policy should match up with the returned results.

Additionally, the Washington State Office of the Insurance Commissioner provides a quarterly list of approved Medicare Supplement (Medigap) plans.  Please see below for each quarter in 2021:

Quarter 1 (January - March 2021)

Quarter 2 (April - June 2021)

Quarter 3 (July - September 2021)

Quarter 4 (October - December 2021)

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   Durable medical equipment, mobility enhancing equipment and prosthetic devices.

RCW 82.08.0283

Durable medical equipment, mobility enhancing equipment, and prosthetic device - amounts paid that were not reimbursed, are now deductible. Deductible amounts include for purchase, rental, repair, cleaning, replacement parts, etc.  Provide receipts or invoices for amounts paid.

Review WAC 458-20-18801 Tables 1, 3, and 5 for qualifying items.

 

   Medically prescribed oxygen.

RCW 82.08.0283

Medically prescribed oxygen - amounts paid that were not reimbursed, are now deductible.  This includes but is not limited to oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems prescribed. Provide receipts or invoices for amounts paid.


   Long-term care insurance premiums. 

RCW 48.84.020

Long-term care insurance premiums - amounts paid that were not reimbursed, are now deductible. Provide invoices or equivalent documents for amounts paid.

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   Cost-sharing amounts.

RCW 48.43.005(18)

Cost-sharing - amounts paid that were not reimbursed, are now deductible. Cost-sharing amounts included deductibles, co-insurance, co-payments for enrollees in health plan; the amounts counted toward the plans out-of-pocket maximum. Please provide a year-end statement from your insurance that identifies the amount of out-of-pocket expenses you have paid for the calendar year.  (Explanation of Benefits (EOB) can work IF they are a year-end statement)  


   Nebulizers.

RCW 82.08.0283

Nebulizer - amounts paid that were not reimbursed, are now deductible.  These costs are for a device, not a building fixture, that converts a liquid medication into a mist so that it can be inhaled. Provide receipts or invoices for amounts paid.


   Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, by a naturopath licensed under Washington law. 

RCW 84.36.383

Naturopath medicine - amounts paid that were not reimbursed, are now deductible.  These are for medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, by a naturopath licensed under Washington law (RCW 18.36A). Provide the receipts or invoices for amounts paid, a copy of the treatment plan, and the name of the naturopath and their Washington license number.

 

   Ostomic items.

RCW 82.08.804

Ostomic items - amounts paid that were not reimbursed, are now deductible.  These items are; disposable medical supplies used by colostomy, ileostomy, and urostomy patients, and includes bags, belts to hold up bags, tapes, tubes, adhesives, deodorants, soaps, jellies, creams, germicides, and other like supplies. Does not include undergarments, pads, and shields to protect undergarments, sponges, or rubber sheets. Provide receipts or invoices identifying items and amounts paid.


   Insulin for human use.

RCW 84.36.383

Insulin for human use - amounts paid that were not reimbursed, are now deductible. Provide receipts or invoices identifying items and amounts paid.


   Kidney dialysis devices.

RCW 84.36.383

Kidney dialysis devices - amounts paid that were not reimbursed, are now deductible. Provide receipts or invoices identifying items and amounts paid.

 

   Disposable devices used to deliver drugs for human use.

RCW 82.08.935

Disposable devices used to deliver drugs - amounts paid that were not reimbursed, are now deductible.  Devices such as syringes, tubing, or catheters. Does not include a stand or device that holds the tubing or catheter. Provide receipts or invoices identifying items and amounts paid.