To amend the Internal Revenue Code of 1986 to exclude from income discharge of medical indebtedness.

Medical Debt Tax Relief Act This bill amends the Internal Revenue Code to exclude from gross income the discharge of medical indebtedness. The bill applies to the discharge of debt incurred by the taxpayer for expenses of the taxpayer or the spouse or a dependent of the taxpayer for: (1) diagnosis, cure, mitigation, treatment, or prevention of disease; (2) the purpose of affecting any structure or function of the body; (3) transportation primarily for and essential to medical care, or (4) long-term care services.