Medical Care Savings Account (MSA) Addback (code 53)

Utah Code §59-10-114(1)(c) and Rule R865-9I-46

A taxpayer who is an account holder of a medical care savings account (MSA) and who withdraws money from this account that is used for a purpose other than a medical expense, shall include as a Utah addition to income for the year of the withdrawal the following:

  • Any amount withdrawn (including any penalty) deducted on your Utah return for a year prior to 2008 or used to calculate the Utah MSA credit on a Utah return for a year after 2007;
  • Any disbursement of assets from a MSA account pursuant to a filing for protection under 11 U.S.C. Sec. 101 to 1330; and
  • Any amount withdrawn that is not deducted on your federal tax return under IRC Section 220.

The account holder will receive a Utah form TC-675M, Statement of Withholding for Utah Medical Savings Account, from the account administrator.

The amount taxable is the sum from TC-675M, lines 8 and 9. Enter this amount on Utah form TC-40A, Part 1, using code 53.

Do not attach form TC-675M to your Utah TC-40. Keep this form with your tax records.