2020 Updates on Long-Term Care Insurance Tax Deductions, Medicare, Medicaid & Health Savings Account Deductibles

2020 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$430
41 – 50$810
51 – 60$1,630
61 – 70$4,350
71 and older$5,430

Indemnity/cash policies: Benefit payments above $380 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
$1,408
Skilled Nursing Facility Coinsurance$176
Part B Deductible$198
Part B Premium$144.60 (incomes below $87,000 individual / $174,000 joint)
Qualified Medicare Beneficiary*
(Annual amounts are issued in approximately February each year)
Individual: $1,084 monthly income / $7,860 assets
Couple: $1,457 monthly income / $11,800 assets

Medicaid: Click here to see state-specific Medicaid information

Spouse’s minimum asset allowance$25,728
Spouse’s maximum asset allowance$128,640
Spouse’s minimum income allowance*$2,155 (effective 7/1/20 – 6/30/21)
Excess shelter allowance$646.50 (effective 7/1/20 – 6/30/21)
Spouse’s maximum income allowance$3,216
Income cap states (3 x SSI)$2,349
Home equity limits$595,000 / $893,000

Health Savings Accounts:
(Minimum Deductible: $1,400 Individual / $2,800 Family)

Individual = Maximum contribution of $3,550. Additional 2020 contribution of $1,000 for 55+; Out-of-Pocket maximum: $6,900.Family = Maximum contribution of $7,100. Additional 2020 contribution of $1,000 for 55+; Out-of-Pocket maximum: $13,800.

*Limits vary for AK and HI

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