Every year we release the key dollar amounts that are frequently used in elder law, estate administration and special needs trust planning, including Medicaid figures, Medicare premiums, Social Security Disability and Supplemental Security Income. Be sure to check back often, as we will add any information that has not yet been released and update the page when changes occur.

Medicaid

Medicaid is the primary funding source for long-term care for millions of disabled and elderly Americans, providing vital long-term care coverage to those who qualify for the benefit. Important figures for 2022 follow:

Medicaid Individual Resource Allowance: $2,000.00.

Resource Allowance for a Couple who both reside in a facility: $3,000.00.

Medicaid Community Spouse Resource Allowance:

  • Minimum: $27,480
  • Maximum: $137,400

Medicaid Monthly Maintenance Needs Allowance: 

  • Minimum: $2,177.50 ($2,721.25 for Alaska & $2,505 for Hawaii) (Until July 1, 2202 )
  • Maximum: $3,435

Medicaid Monthly Personal Needs Allowance (PNA): $50.00/month for recipients in a nursing home, $117.75/month for assisted living facility residents and $2,382/month for recipients of Medicaid-paid home health aides.

Medicaid Divestment Penalty Divisor: Effective April 1, 2021, the penalty divisor has increased to $361.20 per day, amounting to $10,986.50 per month and $131,838 per year. For all cases received on or after April 1, 2021, the new daily penalty divisor of $361.20 will be used in the calculation. The penalty divisor was $357.67 per day through March 31, 2021.

Medicaid Income Limit: A “Miller Trust,” also known as a “Qualified Income Trust,” is required when income exceeds $2,523.00 / month in “income cap” states such as New Jersey. In 2022, applicants in assisted living facilities must have monthly income of at least $826.30 in order to pay the room and board fee.

Principal Residence Equity Limits: Minimum: $636,000;  Maximum:  $955,000

Community Spouse Monthly Housing Allowance: 653.25 [Alaska $816.38; Hawaii $751.50] (Until July 1, 2022)

Standard Utility Allowance: $583.00

See the following new income standards chart for all NJ Medicaid programs, retroactively effective January 1, 2022 for all programs:

Download (PDF, 266KB)

For complete information about the 2022 Supplemental Security Income (SSI) and Spousal Impoverishment Standards, see the following chart:

Download (PDF, 337KB)

Penalty Information In New Jersey For Medicaid:  Individuals in New Jersey are allowed to keep $2,000 when they apply for Medicaid to pay for long term care costs. If applicants own assets in excess of $2,000, they must spend down the amount over $2,000 on care costs before they will be eligible for Medicaid. It is important to note, that individuals are not allowed to give gifts of any amount for a period of 5 years (60 months) prior to applying to Medicaid. This 5 year period is called the “look-back” period.

If a gift of any amount is given in New Jersey during a period of 5 year “look-back” period before applying to Medicaid, a penalty period will be imposed. Medicaid will not pay for care until the penalty period is over. The penalty is calculated by taking the total amount of any gifts given during the 5 year “look-back” period, and dividing it by $10,986.50 per month (or $361.20 per day), a calculation which yields the number of months before Medicaid eligibility is established. The penalty period begins when the applicant is otherwise eligible for Medicaid “but for” the gift.

The NJ Division of Medical Assistance and Health Services (DMAHS) released Medicaid Communication No. 21-01 which provides new information relevant to applications for Medicaid Long Term Services and Supports (MLTSS) benefits:

Download (PDF, 262KB)

The average cost of a private room in a nursing home in New Jersey is $12,000, so penalties can become very costly for a family that has not planned appropriately for Medicaid. If an individual’s assets are more than $2,000, they should learn about Medicaid Planning strategies. If you have multiple assets and are looking to access Medicaid, it may make sense to speak with a Certified Elder Law Attorney in New Jersey.

Veterans Needs-Based Pension Program

The Department of Veterans Affairs (VA) needs-based pension program is available to help financially-needy veterans who suffer from non-service-connected disabilities. There are three (3) levels of VA pension benefits available: (1) the basic pension, (2) “Housebound” benefits and (3) “Aid and Attendance” benefits.

Based upon a veteran’s income, resources and care costs, the VA Pension program can provide up to the following maximum annual and monthly VA pension benefits in 2021:

Level 1: Basic Veterans Pension / Basic Survivors Pension
  • The maximum benefit amount for a veteran who does not have a spouse or dependent child is 14,753 / year.
  • The maximum benefit amount for a married veteran is $19,320 / year .
  • For a surviving spouse without any dependent children, the maximum benefit amount is $9,896 / year.
Level 2: Housebound Pension for Veterans / Surviving Spouses

The benefit amounts below are the maximum monetary amounts a veteran or survivor spouse may be able to receive for Basic Veterans / Survivor Pension plus Housebound Pension.

  • The maximum benefit amount for a veteran who does not have a spouse or dependent child is $18,029/ year.
  • The maximum benefit amount for a veteran with a spouse is a going $22,596 / year.
  • The maximum benefit amount for a surviving spouse receiving Housebound Pension is 12,094 / year.
Level 3: Aid & Attendance Pension for Veterans / Surviving Spouses

The amounts below are the maximum benefit amount a veteran or surviving spouse may be entitled to for Basic Veterans / Survivor Pension plus Aid & Attendance Pension.

  • The maximum benefit amount for a veteran who does not have a spouse or dependent child is $24,610 / year.
  • The maximum benefit amount for a married veteran is $29,175 / year.
  • The maximum benefit amount for a surviving spouse is $16,456 / year.
  • The maximum benefit amount for a veteran married to a veteran (both with A&A Pension): $39,036 / year.

Sources:

2022 VA Pension Rates for Veterans

2022 VA Survivors Pension Benefit Rates

October 18, 2018, the VA amended the regulations governing the VA pension program, adopting new rules which mirror the Medicaid rules. For the first time, eligibility for the pension program requires a net worth determination, establishes a look-back period and imposes penalties for asset transfers.  New requirements also identify the medical expenses which may be deducted from countable income for VA’s needs-based benefit programs. The new rules will make qualifying for VA pension benefits more challenging than ever.

On October 18, 2018, the VA changed the way the agency assess net worth to make the pension entitlement rules clearer. From December 1, 2021, to November 30, 2022, the net worth limit to be eligible for Veterans Pension benefits is $138,489. However, net worth includes the applicant’s and his or her spouse’s assets AND annual income. When you apply for Veterans Pension benefits, the applicant must report all of these assets and income. For example, if the veteran had $121,000 in assets and $14,000 in annual income, then his or her net worth would be $135,000. This is less than the net worth limit of $138,489, so the veteran would be eligible for Veterans Pension benefits.

If a veteran applicant transfers assets for less than fair market value during the look-back period, and those assets would have pushed the veteran’s net worth above the limit for a VA pension, the applicant may be subject to a penalty period of up to 5 years. The applicant won’t be eligible for pension benefits during the penalty period.

A penalty period is a length of time when a Veteran isn’t eligible for pension benefits because they transferred assets for less than fair market value during the look-back period. The VA won’t pay pension benefits during a penalty period. The VA penalty divisor in 2022 is $2,431.This new policy took effect on October 18, 2018. If the veteran filed a claim before this date, the look-back period doesn’t apply.

Medicare Deductibles, Premiums and Co-Pays

Medicare is the federal government program that provides health insurance if you are 65+, under 65 and receiving Social Security Disability Insurance (SSDI) for a certain amount of time, or under 65 and with End-Stage Renal Disease (ESRD). Medicare has been protecting the health and well-being of American families and saving lives for five decades.

The Centers for Medicare and Medicaid Services unveiled the new rates for 2022, as set forth below:

Medicare Part A Deductible for 2022: $1,556 deductible for each benefit period (was $1,484.00)

Co-payments for hospital stays in 2022:

  • Day 1-60: $0 co-insurance
  • Day 61-90: $389 per day in 2022
  • Day 91 – 150: $778 per day in 2022
  • Beyond 150 days: All costs for each day

Co-payments for skilled nursing facility stay, days 21-100: $194.50 per day in 2022

Part B Deductible in 2022: $233.00

Part B Premium in 2022: $170.10 per month

Part B premiums in 2022 for higher-income beneficiaries:

  • Individuals with annual incomes less than or equal to $91,000, and married couples with annual incomes less than or equal to $182,000 will pay a monthly premium of $170.10.
  • Individuals with annual incomes greater than 91,000 and less than or equal to $114,000, and married couples with annual incomes greater than $182,000 and less than or equal to $228,000 will pay a monthly premium of $239.10.
  • Individuals with annual incomes greater than $114,000 and less than or equal to $142,000, and married couples with annual incomes greater than $228,000 and less than or equal to $284,000 will pay a monthly premium of $340.20.
  • Individuals with annual incomes greater than $142,000 and less than $170,000, and married couples with annual incomes greater than $284,000 and less than $340,000 will pay a monthly premium of $442.30.
  • Individuals with annual incomes greater than $170,000 and less than $500,000, and married couples with annual incomes greater than $340,000 and less than $750,000 will pay a monthly premium of $544.30.
  • Individuals with annual incomes greater than or equal to $500,000, and married couples with annual incomes greater than or equal to $750,000 will pay a monthly premium of $578.30.

For Medicare’s Medicare Part B Monthly Actuarial Rates, Premium Rates, and Annual Deductible Beginning January 1, 2022, see below:

Download (PDF, 261KB)

Social Security and Supplemental Security Income

The Social Security Administration (SSA) has announced increases in the 2022 cost-of-living adjustment (COLA) for Social Security and Supplemental Security Income (SSI) benefits.

Social Security and SSI beneficiaries will receive a 5.9% COLA for 2022.

SSA also announced an increase in the SSA maximum taxable amount to $147,000 .

SSI Federal Payment Standard: The federal benefit amount for an individual eligible for SSI in 2022 will increase to $841 per month. New Jersey supplements the federal benefit amount by $31.25 per month, for a total monthly benefit of $872.25 per month for an individual. The federal benefit amount for an eligible couple will increase to $1,261 per month which, when the New Jersey supplement for a couple ($25.36) is factored in, amounts to a total monthly benefit of $1,286.36 per month for an eligible couple.

The table below lists the combined federal and state SSI payment amounts for eligible New Jersey residents:

Person living alone or with others in own household – $825.25

Person living with spouse who is not eligible for SSI – $947.00

Person living in someone else’s household and receiving support and maintenance – $573.65

Person living in licensed residential health care facility – $1,004.05

Person living in public general hospital or Medicaid-approved long-term health facility – $50.00

Couple living alone or with others in own household – $1,216.36

Couple living in someone else’s household and receiving support and maintenance – $887.10

Couple living in licensed residential health care facility – $1,929.36

Retirement Earnings Test Exempt Amounts

Under full retirement age*

2022: $19,560
*One dollar in benefits will be withheld for every $2 in earnings above the limit.

The year in which an individual reaches full retirement age**            

2021: $51,960
** The 7.65% tax rate is the combined tax rate paid for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.

Substantial Gainful Activity (SGA) Thresholds

Disabled: $1,350.00/mo. in 2022

Blind: $2,260.00/mo. in 2022

Trial Work Period: $970/mo. in 2022

Social Security Fact Sheet for 2022 – 

Download (PDF, 198KB)

Federal and State Estate and Gift Taxes in 2022

Federal Estate Tax Threshold:$12,060,000 for individuals and $24,120,000 for couples

Federal Gift Tax Exclusion: $16,000. The exclusion is increased to $159,000 for gifts to spouses who are not citizens of the United States.

Lifetime Federal Tax Exclusion for Gifts: $12,060,000 for individuals and $24,120,000 for couples

Generation-Skipping Federal Transfer Tax Exemption: $11,700,000

NJ Estate Tax: Eliminated as of 1/1/2018

NJ Inheritance Tax: Class A & E Exempt

NJ Gift Tax: $00.00

For these and other inflation adjustments from the IRS, see below:

Download (PDF, 192KB)

2022 Federal Income Tax Brackets and Rates 

 
Rate For Unmarried Individuals For Married Individuals Filing Joint Returns For Heads of Households
10% Up to $10,275 Up to $20,500 Up to $14,650
12% $10,276 to $41,775 $20,550 to $83,550 $14,651 to $55,900
22% $41,776 to $89,075 $83,551 to $178,150 $55,901 to $89,050
24% $89,076 to $170,050 $178,151 to $340,100 $89,051 to $170,050
32% $170,051 to $215,950 $340,101 to $431,900 $170,051 to $215,950
35% $215,951 to $539,900 $431,901 to $647,850 $215,951 to $539,900
37% $523,601 or more $539,901 or more $539,901 or more

Income Taxes for Trusts and Estates in 2022

If Taxable Income is Between: The Tax Due is:
$0 – $2,650 10% of income over $0
$2,650 to $9,550 $265 + 24% of income over $2,650
$9,551 – $13,050 $1,921 + 35% of the amount over $9,550
$13,051 $3,146 + 37% of the amount over $13,050

Long-Term Care Premium Deductibility Limits for 2022

Premiums for qualified long-term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses (including Medicare premiums), exceed 7.5 percent of your adjusted gross income in 2022.

These premiums — what the policyholder pays the insurance company to keep the policy in force — are deductible for the taxpayer, his or her spouse and other dependents. (If you are self-employed, the tax-deductibility rules are a little different: You can take the amount of the premium as a deduction as long as you made a net profit; your medical expenses do not have to exceed a certain percentage of your income.)

However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year. Following are the deductibility limits for 2022.

Attained age before the close of the taxable year                     Maximum deduction for year

40 or less                                                                                                     $450

More than 40 but not more than 50                                                             $850

More than 50 but not more than 60                                                             $1,690

More than 60 but not more than 70                                                             $4,510

More than 70                                                                                               $5,640

For these and other inflation adjustments in 2022 from the IRS, see Rev. Proc. 2021-45 below:

Download (PDF, 192KB)

For additional information concerning estate planning and administration, visit:

Estate Planning and Administration

For additional information concerning Medicaid and public benefits planning, visit:

NJ Medicaid and Public Benefits Planning