Indiana Code
Chapter 2. Imposition of Tax and Deductions
6-3-2-18. Employee Medical Care Savings Accounts; Exemption Limited to Deposits Before January 1, 2016

Sec. 18. (a) As used in this section, "eligible medical expense" has the meaning set forth in IC 6-8-11-3.
(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(1) withdrawn from a medical care savings account established for an employee under IC 6-8-11; and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 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(1) withdrawn by an employee from a medical care savings account established under IC 6-8-11; and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 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.

Structure Indiana Code

Indiana Code

Title 6. Taxation

Article 3. State Income Taxes

Chapter 2. Imposition of Tax and Deductions

6-3-2-0.3. Intent of General Assembly Adding Section 2.3 of This Chapter

6-3-2-1. Tax Rate; Calculations Required for Purposes of Determining Tax Rate

6-3-2-1.5. "Qualified Area"; Tax Rate in Qualified Area; Application of Tax Rate After December 31, 2018; Expiration

6-3-2-1.7. Election for Certain Corporations; Qualified Distribution Sales to a Distributor for Resale; Sourcing of the Sale

6-3-2-2. "Adjusted Gross Income Derived From Sources Within Indiana"; Apportionment; Payroll Factor; Sales Factor; Property Factor; Pass Through Entities

6-3-2-2.2. Interest Income, Discounts, and Receipts Attributable to State

6-3-2-2.3. In-State Commercial Printing for Out-of-State Customer

6-3-2-2.4. Foreign Operating Corporations; Determination of Percentage of Business Activity Outside United States

6-3-2-2.5. Resident Persons; Net Operating Loss; Adjusted Gross Income

6-3-2-2.5-b. Resident Persons; Net Operating Loss; Adjusted Gross Income

6-3-2-2.6. Corporations and Nonresident Persons; Net Operating Losses

6-3-2-2.6-b. Corporations and Nonresident Persons; Net Operating Losses

6-3-2-2.7. Team Members; Indiana Income; Rules

6-3-2-2.8. Exemption; Nonprofit Entities; Subchapter S Corporations; Financial Institutions; Insurance Companies; International Banking Facilities

6-3-2-2.9. Repealed

6-3-2-3. Repealed

6-3-2-3.1. Taxation; Nonprofit Entities; Unrelated Business Income

6-3-2-3.2. Indiana Income of Race Team Members

6-3-2-3.5. Exemption; Fares for Public Transportation Services

6-3-2-3.7. Remainder of Federal Civil Service Annuity Minus Certain Retirement Benefits; Deduction

6-3-2-4. Military Service Deduction; Retirement Income or Survivor's Benefits Deduction

6-3-2-5. Repealed

6-3-2-5.3. Repealed

6-3-2-5.5. Repealed

6-3-2-6. Deduction; Rent Payments

6-3-2-7. Repealed

6-3-2-8. Enterprise Zone Employers; Exemption From Deduction

6-3-2-9. Disability Retirement; Deduction; Amount

6-3-2-10. Unemployment Compensation; Deduction

6-3-2-11. Deductions From Adjusted Gross Income; Federal Employee Paid Leave

6-3-2-12. Foreign Source Dividends; Deduction; Computation

6-3-2-13. Export Income; Maritime Opportunity Districts; Limit on Deduction After December 31, 2015; Expiration

6-3-2-14. Repealed

6-3-2-14.1. Prize Money Accruing Before July 1, 2002; Exemption

6-3-2-14.5. Repealed

6-3-2-15. Repealed

6-3-2-16. Transactions Between Taxable Entity and Unitary Taxpayer Subject to Ic 6-5.5

6-3-2-17. Repealed

6-3-2-18. Employee Medical Care Savings Accounts; Exemption Limited to Deposits Before January 1, 2016

6-3-2-19. Distributions for Higher Education; Exemptions

6-3-2-20. Corporations; Intangible Expenses; Directly Related Interest Expenses; Exceptions

6-3-2-21.7. Exemption for Certain Income Derived From Patents

6-3-2-22. Deduction; Unreimbursed Education Expenditures

6-3-2-24. Income Tax Exemption; Olympic Medalist

6-3-2-25. Adjusted Gross Income Tax Deduction for Property Taxes Imposed for March 1, 2006, or January 15, 2007, Assessment

6-3-2-26. Deduction for Contributions to a Regional Development Authority Infrastructure Fund