2018 Updates on Long-Term Care Insurance Tax Deductions, Medicare, Medicaid & Health Savings Account Deductibles

 

2018 Updates
Provided by: GotLTCi

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 $420
41 – 50 $780
51 – 60 $1,560
61 – 70 $4,160
71 and older $5,200

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. C-Corps 100% of premium.

Medicare: 

Part A Deductible
$1,340
Skilled Nursing Facility Coinsurance $167.50
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: $1,025 month income/$7,390 assets

Couple: $1,374 month income/$11,090 assets

Medicaid: Click here to see state-specific Medicaid information

Spouse’s minimum asset allowance $24,720
Spouse’s maximum asset allowance $123,600
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 $3,090
Income cap states (3 x SSI) $2,250
Home equity limits $572,000 / $858,000

Health Savings Accounts:
(Minimum Deductible: $1,350 Individual / $2,700 Family)

Individual = Maximum contribution of $3,450. Additional 2018 contribution of $1,000 for 55+; Out-of-Pocket maximum: $6,650. Family = Maximum contribution of $6,900. Additional 2018 contribution of $1,000 for 55+; Out-of-Pocket maximum: $13,300.

*Limits vary for AK and HI

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