With the rising cost of health care and the IRS further limiting our ability to deduct medical expenses, an Idaho Medical Savings Account (MSA) is something every family with medical costs should have. An Idaho MSA plan allows individuals to contribute up to $10,000 per year, and $20,000 for married couples filing jointly. This amount is deductible on your Idaho income tax return, and as long as funds are used to pay for medical expenses, the distributions are tax free, effectively reducing your medical costs by 7.4%. The best part is that there is not restrictions on who can set one of these up. Anyone can do it regardless of what type of health insurance you have or don’t have. Check with you bank or credit union to see if they offer MSA accounts and start contributing. You are most likely going to use some money for health care this year, why not deduct it? Check out this link for more info from the State Tax Commission, and give us a call to find out what and Idaho MSA could do to improve your tax situation.