Idaho Medical Savings Account Contributions and Interest
The Idaho Medical Savings Account (IMSA) allows Idaho residents to save for qualified medical expenses while receiving a state tax deduction for contributions. These accounts are typically established with banks, savings and loans, or credit unions.
Contribution Limits
- Individuals can contribute up to $10,000 annually.
- Couples filing jointly may contribute up to $20,000 annually.
What Can Be Deducted?
- Qualifying contributions to the IMSA account.
- Interest earned on the account, but only if reported on Form 43, line 8.
What Cannot Be Deducted?
- Reimbursements that are redeposited into the IMSA account.
- Amounts already deducted on federal Form 1040 or 1040-SR.
Reporting Requirements
Contributions and interest must be reported on Form 43, line 8. The account holder must include:
- Qualifying contributions.
- Interest earned (if included on Form 43, line 8).
Source:
Individual Income Tax guidelines
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.