This year, the Utah state income tax return is providing state tax benefits to individuals and businesses for health-care savings for the first time.
The 1995 Medical Care Savings Account Act created a new option for employers to address the rising cost of health-care insurance, according to a State Tax Commission spokeswoman.Employers now may purchase qualified higher-deductible health care plans for their employees and make state-tax-exempt deposits on their behalf to a medical case savings account.
Individuals also may purchase a qualified higher-deductible health plan and make state-tax-exempt deposits into a medical care savings account. Account holders may pay health insurance premiums, deductible or other eligible medical costs with medical care savings account funds.
Contributions made to a medical care savings account may not exceed $2,000 a year, or the amount of money equal to the eligible medical expenses paid out in that tax year by the account holder, whichever is greater.
For more information, contact the commission at 297-2200.