Below are figures for 2016 that are frequently used in the elder law practice or are of interest to clients.
Medicaid Spousal Impoverishment Figures for 2016
These figurs are unchanged from 2015. The minimum community spouse resource allowance (CSRA) is $23,844 and the maximum CSRA remains $119,220. The maximum monthly maintenance needs allowance is $2,980.50. The minimum monthly maintenance needs allowance will be $1,991.25 ($2,490 for Alaska and $2,291.25 for Hawaii) until July 1, 2016.
Medicaid Home Equity Limits
Also no change from 2015: Minimum: $552,000; Maximum: $828,000
For the CMS document announcing the 2016 impoverishment and home equity figures, click here.
The income cap for 2016 applicable in “income cap” states remains $2,199 a month.
Gift and estate tax figures
Federal estate tax exemption: $5.45 million for individuals
Lifetime tax exclusion for gifts: $5.45 million
Generation-skipping transfer tax exemption: $5.45 million
The annual gift tax exclusion remains at $14,000.
Long-Term Care Premium Deductibility Limits for 2016
The Internal Revenue Service has announced the 2016 limitations on the deductibility of long-term care insurance premiums from taxes. Any premium amounts above these limits are not considered to be a medical expense.
|Attained age before the close of the taxable year||Maximum deduction|
|40 or less||$390|
|More than 40 but not more than 50||$730|
|More than 50 but not more than 60||$1,460|
|More than 60 but not more than 70||$3,900|
|More than 70||$4,870|
Benefits from per diem or indemnity policies, which pay a predetermined amount each day, are not included in income except amounts that exceed the beneficiary’s total qualified long-term care expenses or $340 per day (for 2016), whichever is greater.
For these and other inflation adjustments from the IRS, click here.
Medicare Premiums, Deductibles and Copayments for 2016
- Part B premium: $104.90/month (unchanged)
- Part B premium for beneficiaries not “held harmless”: $121.80
- Part B deductible: $147 (unchanged)
- Part B deductible for beneficiaries not “held harmless”: $166
- Part A deductible: $1,288 (was $1,260)
- Co-payment for hospital stay days 61-90: $322/day (was $31)
- Co-payment for hospital stay days 91 and beyond: $644/day (was $630)
- Skilled nursing facility co-payment, days 21-100: $161/day (was $157.50)
Premiums for higher-income beneficiaries:
- Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay a monthly premium of $170.50 (was $146.90).
- Individuals with annual incomes between $107,000 and $160,000 and married couples with annual incomes between $214,000 and $320,000 will pay a monthly premium of $243.60 (was $209.80).
- Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 will pay a monthly premium of $316.70 (was $272.70).
- Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more will pay a monthly premium of $389.80 (was $335.70).
Rates differ for beneficiaries who are married but file a separate tax return from their spouse:
- Those with incomes between $85,000 and $129,000 will pay a monthly premium of $316.70 (was $272.70).
- Those with incomes greater than $129,000 will pay a monthly premium of $389.80 (was $335.70).
For “Medicare 2016 costs at a glance,” click here.
Social Security Benefits for 2016
Most Social Security figures remain unchanged. The monthly federal Supplemental Security Income (SSI) payment standard stays at $733 for an individual and $1,100 for a couple.
Estimated average monthly Social Security retirement payment: $1,341 a month (was $1,328) for individuals and $2,212 (was $2,176) for couples
Maximum amount of earnings subject to Social Security taxation: $118,500 (unchanged)
For a complete list of the 2016 Social Security figures, go to: https://www.socialsecurity.gov/news/press/factsheets/colafacts2016.html