Subscribe
  • News
    • Local
    • Regional
    • Business
    • Real Estate
    • Outlaw Partners
  • Arts & Entertainment
  • Opinion
  • Sports
  • Yellowstone
  • Events
Menu
  • News
    • Local
    • Regional
    • Business
    • Real Estate
    • Outlaw Partners
  • Arts & Entertainment
  • Opinion
  • Sports
  • Yellowstone
  • Events

Medical savings account can help Montanans save on state income taxes

in News
Megan Paulsonby Megan Paulson
November 14, 2012

MSU Extension emphasizes opening account before end of year

MSU News Service

BOZEMAN – There is good news for Montana taxpayers paying out-of-pocket medical expenses.

Article Inline Ad Article Inline Ad Article Inline Ad

A Montana Medical Care Savings Account, or MSA, can aid in paying for those expenses not covered by a health insurance policy or a flexible spending account. And if opened by December 31, an MSA can also lower a participant’s annual Montana income taxes.

Up to $3,000 of a deposit into an MSA, per taxpayer, is deductible from an individual’s 2012 Montana adjusted gross income, but it only pertains to state taxes.

“This tax advantage does not apply to your federal income taxes and should not be confused with the Federal Health Savings Accounts (FHAs),” said Marsha Goetting, MSU Extension family economics specialist.

A Montanan with taxable income over $16,400 could save about $207 in state income taxes by depositing the maximum $3,000 in a Montana MSA.

“It doesn’t matter if you have already paid your 2012 medical bills either by check, credit or debit card,” Goetting said. “You can add up those expenses and make a deposit by Dec. 31 of this year and reimburse yourself from your Montana MSA as late as Jan. 15, 2013.”

MSA owners can reduce their Montana income by the total deposited, not the amount used for medical expenses during the tax year.

“Montana Medical Care Savings Accounts are not like flexible spending accounts where you use it or lose it,” Goetting said. Remaining funds in an MSA are available for future medical expenses, but are not tax deductible,” she added.

A husband and wife who each establish an individual MSA can receive a $6,000 deduction if they file a joint Montana income tax return. They will save about $414 on their state income taxes. Joint accounts for an MSA are not allowed. Only individual accounts are eligible for the Montana MSA deduction.

MSA amounts held in the name of a husband or wife can be used to pay the medical bills of either spouse or their dependent children, Goetting said.

Montana accepts any eligible expenses listed in IRS publication “Medical and Dental Expenses,” on the web at irs.gov/pub/irs-pdf/p502.pdf. Expenses not covered are medical-related bills already covered by a supplemental, primary or self-insured plan.

An MSU Extension MontGuide offers help in understanding who would benefit from a Montana medical care savings account. The free publication MontGuide 199817 HR is available from local MSU County Extension offices or online format the MSU Extension website: msuextension.org/publications/FamilyFinancialManagement/MT199817HR.pdf

Outlaw Realty Outlaw Realty
Outlaw Realty
ADVERTISEMENT

Listen

Hoary Marmot Podcast

Joe Borden & Michele Veale Borden

Lastest Episode
See More Episodes

Upcoming Events

Jun 20
9:30 am - 12:00 pm

Community Yoga

Jun 20
11:00 am - 5:00 pm Event Series

June Show at the Big Sky Artists’ Studio & Gallery

Jun 20
7:00 pm - 9:30 pm Event Series

Trivia at the Waypoint

Jun 21
9:00 am - 10:00 am Event Series

Planting the Past: Crafting Historic Seed Boxes

Jun 21
11:00 am - 5:00 pm Event Series

June Show at the Big Sky Artists’ Studio & Gallery

View Calendar
Event Calendar

Related Posts

Construction to start July 7 on 19th Avenue in Bozeman
News

Construction to start July 7 on 19th Avenue in Bozeman

June 18, 2025
Gallatin County Commission adopts safe roads action plan 
News

Gallatin County Commission adopts safe roads action plan 

June 17, 2025
BSRAD invests in ongoing community projects, microgrants 
Local

BSRAD invests in ongoing community projects, microgrants 

June 16, 2025
Big Sky OUT’s Summer Pride March draws support across Big Sky
Local

Big Sky OUT’s Summer Pride March draws support across Big Sky

June 16, 2025

An Outlaw Partners Publication

Facebook-f Instagram X-twitter Youtube

Explore Big Sky

  • About/Contact
  • Advertise
  • Publications
  • Subscriptions
  • Podcast
  • Submissions

Outlaw Brands

  • Mountain Outlaw
  • Plan Yellowstone
  • Big Sky PBR
  • Wildlands Music
  • Outlaw Partners
  • Outlaw Realty
  • Hey Bear

Copyright © 2025 Explore Big Sky | Terms of Use | Privacy Policy | Your Privacy Choices

No Result
View All Result
  • News
    • Regional
    • Business
    • Outlaw Partners
  • Yellowstone
  • Arts & Entertainment
  • Sports
  • Opinion
  • Real Estate
  • Events

©2024 Outlaw Partners, LLC. All Rights Reserved.

Explore Big Sky Logo
  • News
    • Local
    • Regional
    • Business
    • Real Estate
    • Outlaw Partners
  • Arts & Entertainment
  • Opinion
  • Sports
  • Yellowstone
  • Events
Subscribe
Facebook X-twitter Instagram Youtube