2014 Updates on Long-Term Care Insurance Tax Deductions, Medicare, Medicaid & Health Savings Account Deductibles

 

2014 Updates
Provided by: LTC Consultants

HIPAA:

Attained age before the close of the taxable year: Amount that counts as a medical expense:
40 or less $370
41 – 50 $700
51 – 60 $1,400
61 – 70 $3,720
71 and older $4,660

Indemnity policies: Benefit payments above $330 per day that exceed the actual cost of care will be taxed as income. [IRS §213(d)(10)]

Self-Employed Long-Term Care Insurance Deductions: 100% of age-based limits

Medicare: 

Part A Deductible
$1,216
Skilled Nursing Facility Coinsurance $152
Part B Deductible $147
Part B Premium $104.90 (incomes below $85,000 individual/ $170,000 joint)
Qualified Medicare Beneficiary*(Annual amounts are issued in approximately February each year) Individual: $978 month income/$7,80 assets
Couple: $1,313 month income/$10,620 assets

Medicaid: Click here to see state-specific Medicaid information

Spouse’s minimum asset allowance $23,448
Spouse’s maximum asset allowance $117,240
Spouse’s minimum income allowance* $1,939 (effective 7/1/13-6/30/14)
Excess shelter allowance $582 (effective 7/1/13 – 6/30/14)
Spouse’s maximum income allowance $2,931
Income cap states (3 x SSI) $2,163
Home equity limits $543,000/$814,000

Health Savings Accounts: (Minimum Deductible: $1,250 Individual / $2,500 Family)

Individual = Maximum contribution of $3,300. Additional 2014 contribution of $1,000 for 55+; Out-of-Pocket maximum: $6,350. Family = Maximum contribution of
$6,550. Additional 2014 contribution of $1,000 for 55+; Out-of-Pocket maximum: $12,700.

*Limits vary for AK and HI

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