2019 Updates on Long-Term Care Insurance Tax Deductions, Medicare, Medicaid & Health Savings Account Deductibles

2019 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$790
51 – 60$1,580
61 – 70$4,220
71 and older$5,270

Indemnity/cash policies: Benefit payments above $370 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
$1,364
Skilled Nursing Facility Coinsurance$170
Part B Deductible$185
Part B Premium$135.50 (incomes below $85,000 individual / $170,000 joint)
Qualified Medicare Beneficiary*
(Annual amounts are issued in approximately February each year)
Individual: $1,032 monthly income / $7,560 assets
Couple: $1,392 monthly income / $11,340 assets

Medicaid: Click here to see state-specific Medicaid information

Spouse’s minimum asset allowance$25,284
Spouse’s maximum asset allowance$126,420
Spouse’s minimum income allowance*$2,057.50 (effective 7/1/18 – 6/30/19)
Excess shelter allowance$617.25 (effective 7/1/18 – 6/30/19)
Spouse’s maximum income allowance$3,160.50
Income cap states (3 x SSI)$2,313
Home equity limits$585,000 / $878,000

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

Individual = Maximum contribution of $3,500. Additional 2019 contribution of $1,000 for 55+; Out-of-Pocket maximum: $6,750.Family = Maximum contribution of $7,000. Additional 2019 contribution of $1,000 for 55+; Out-of-Pocket maximum: $13,500.

*Limits vary for AK and HI

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