Utah Medical Care Savings Account (MSA) Addback
The Utah Medical Care Savings Account (MSA) Addback is a provision that requires taxpayers who contribute to an MSA to report certain amounts on their Utah state tax return. This addback ensures that contributions or distributions from an MSA are properly accounted for in state taxable income.
What is the MSA Addback?
The MSA Addback is an adjustment to income required on Form TC-40, specifically on TC-40A, Part 1, Line 5. It applies to individuals who are account holders of an MSA and who have received contributions or distributions from the account.
How to Report the MSA Addback
- Obtain Form TC-675M, Statement of Withholding for Utah Medical Savings Account, from your MSA administrator.
- Enter the sum from TC-675M, lines 8 and 9, on TC-40A, Part 1, Line 5.
- Only include the amount up to the amount deducted or used in calculating the MSA credit on your current or previously filed Utah tax return.
- Keep Form TC-675M with your tax records for audit purposes.
Relevant Tax Forms and Instructions
The MSA Addback is detailed in the Utah State Tax Commission’s instructions for Form TC-40. The addback is part of the "Additions to Income" section and is governed by UCA §59-10-114(1)(c).
Software Guidance for Filing
When filing your Utah state tax return using OLT (Online Taxes) software:
- Navigate to the "State" section in your tax return.
- Select "Start or Revisit Utah State."
- Under the "Payments" section, choose "Voluntary Gifts/Contributions" or "Form TC-40A" as applicable.
- Follow on-screen instructions to enter the MSA addback amount.
Source:
TC-40 Forms and Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.