1286                            LAWS OF MARYLAND                      [CH. 805

CHAPTER 805
(House Bill 590)

AN ACT to repeal and re-enact, with amendments, Section 281 (q)
of Article 81 of the Annotated Code of Maryland (1957 Edition),
title "Revenue and Taxes," subtitle "Income Tax," to remove the
limitation on the medical expenses deduction for taxpayers and
dependents over 65 years old.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 281 (q) of Article 81 of the Annotated Code of Mary-
land (1957 Edition), title "Revenue and Taxes," subtitle "Income
Tax," be and it is hereby repealed and re-enacted, with amendments,
to read as follows:

281.

(q) For all calendar years beginning after December 31, 1954,
expenses paid during the taxable year, not compensated for by insur-
ance or otherwise, for medical care of the taxpayer, his spouse or
dependents as denned in Section 286 (b). The term "medical care"
shall include amounts paid for the diagnosis, cure, mitigation, treat-
ment or prevention of disease or for the purpose of affecting any
structure or function of the body (including amounts paid for acci-
dent or health insurance); provided, however, that a taxpayer may
deduct only such expenses as exceed three percentum of his gross
income or three percentum of the aggregate gross income in the
case of husband and wife, computed without the benefit of this
section, provided, further, however, that in computing the medical
expense, an amount equal to one percentum (1%) of the gross income
or the combined gross income of husband and wife shall first be
deducted from the aggregate amount expended for drugs and
medicine; that the maximum deduction for the taxable year shall
not exceed $2,500.00 in the case of husband and wife or head of a
family or $1,250.00 in the case of all other such individuals, except,
however, that if the taxpayer or his spouse or the taxpayer's de-
pendent has attained the age of 65 before the close of the taxable
year, the full amount of medical expenses paid may be deducted with-
out regard to [the 3%] any limitation [, but subject, nevertheless,
to the maximum sum of $2,500.00 in the case of husband and wife
or head of a family and the sum of $1,250.00 in the case of all other
individuals]. The term "head of a family," as used in this subsection,
shall mean an individual who maintains in one household one or more
dependents as defined in Section 286 (b) of this subtitle as amended
from time to time.

Sec. 2. And be it further enacted, That the provisions of this Act
shall be effective for all calendar years beginning after December
31, 1964.

Sec. 3. And be it further enacted, That this Act shall take effect
June 1,1965.

Approved May 4, 1965.