2017 Updates on Long-Term Care Insurance Tax Deductions, Medicare, Medicaid & Health Savings Account Deductibles

2017 Updates
Provided by: LTC Consultants

HIPAA:

Attained age before the close of the taxable year: Amount that counts as a medical expense OR paid through a Health Savings Account OR 1st dollar tax-deduction for self-employed
40 or less $410
41 – 50 $770
51 – 60 $1,530
61 – 70 $4,090
71 and older $5,110

Indemnity/cash policies: Benefit payments above $360 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 for owner and spouse.

Medicare: 

Part A Deductible
$1,316
Skilled Nursing Facility Coinsurance $164.50
Part B Deductible $183
Part B Premium $134 (incomes below $85,000 individual/ $170,000 joint)
Qualified Medicare Beneficiary*

(Annual amounts are issued in approximately February each year)

Individual: $1,001 month income/$7,280 assets

Couple: $1,348 month income/$10,930 assets

Medicaid: Click here to see state-specific Medicaid information

Spouse’s minimum asset allowance $24,180
Spouse’s maximum asset allowance $120,900
Spouse’s minimum income allowance* $2,030 (effective 7/1/17-6/30/18)
Excess shelter allowance $609 (effective 7/1/17 – 6/30/18)
Spouse’s maximum income allowance $3,022.50
Income cap states (3 x SSI) $2,205
Home equity limits $560,000 / $840,000

Health Savings Accounts:
(Minimum Deductible: $1,300 Individual / $2,600 Family)

Individual = Maximum contribution of $3,400. Additional 2017 contribution of $1,000 for 55+; Out-of-Pocket maximum: $6,550. Family = Maximum contribution of
$6,750. Additional 2017 contribution of $1,000 for 55+; Out-of-Pocket maximum: $13,100.

*Limits vary for AK and HI

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