Looking for a Possible Tax Break?
Recently Idaho approved an increase to the amount an account holder may contribute to a Medical Savings Account (MSA). The limit was increased to $10,000 for a single person and $20,000 jointly for a married couple. Contributions to an Idaho MSA can be deducted from your adjusted gross income when you file an Idaho income tax return.
What qualifying expenses are or can be covered or paid for through distributions from your MSA? You can pay eligible medical, vision and dental expenses, along with health insurance and supplemental Medicare premiums and long-term care expenses from your MSA. If you are self-employed with a high deductible and you’ve been paying out of pocket for much of above mentioned qualifying expenses, it is worth looking into an MSA further. Contact your accountant and health insurance agent to discuss if this might be a way for you to save on your Idaho state income tax bill.
You can also read more about the Idaho MSA though the Idaho State Tax Commission website. (http://tax.idaho.gov/i-1162.cfm)