(b) As used in this section, 'medical care savings account' has the meaning set forth in IC 6-8-11-6.(c) This subsection applies only to money deposited by an employer in a medical care savings account before January 1, 2016. Except as provided in subsection (g), the amount of money deposited by an employer in a medical care savings account established for an employee under IC 6-8-11 is exempt from taxation under IC 6-3-1 through IC 6-3-7 as income of the employee in the taxable year in which the money is deposited in the account.(d) Except as provided in subsection (g), the amount of money that is:(1) withdrawn from a medical care savings account established for an employee under IC 6-8-11; and(2) either:(A) used by the administrator of the account for a purpose set forth in IC 6-8-11-13; or(B) used under IC 6-8-11-13 to reimburse an employee for eligible medical expenses that the employee has incurred and paid for medical care for the employee or a dependent of the employee;is exempt from taxation under IC 6-3-1 through IC 6-3-7 as income of the employee.(e) Except as hat the employee has incurred and paid for medical care for the employee or a dependent of the employee;is exempt from taxation under IC 6-3-1 through IC 6-3-7 as income of the employee.(e) Except as provided in IC 6-8-11-11 and IC 6-8-11-11.5, in each taxable year, the amount of money that is:(1) withdrawn by an employee from a medical care savings account established under IC 6-8-11; and(2) used for a purpose other than the purposes set forth in IC 6-8-11-13;is income to the employee that is subject to taxation under IC 6-3-1 through IC 6-3-7.(f) If an employee withdraws money from the employee's medical care savings account under the circumstances set forth in IC 6-8-11-17(c), the interest earned on the balance in the account during the full tax year in which the withdrawal is made is subject to taxation under IC 6-3-1 through IC 6-3-7 as income of the employee.(g) A taxpayer that excluded or deducted an amount deposited into a medical care savings account from adjusted gross income under:(1) section 106 of the Internal Revenue Code;(2) section 220 of the Internal Revenue Code; or(3) any other section of the Internal Revenue Code;is not eligible for an additional exemption from under:(1) section 106 of the Internal Revenue Code;(2) section 220 of the Internal Revenue Code; or(3) any other section of the Internal Revenue Code;is not eligible for an additional exemption from adjusted gross income under this section.As added by P.L.92-1995, SEC.1 and P.L.93-1995, SEC.1. Amended by P.L.60-1997, SEC.3; P.L.250-2015, SEC.23.
Indiana Legal Code