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 figures 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 until July 1, 2016.
Medicaid Home Equity Limits
Also no change from 2015: Minimum: $552,000; Maximum: $828,000.
The income cap for 2016 applicable in “income cap” states remains $2,199 a month.
Federal Estate and Gift Tax Exemption Amounts
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
Non-citizen spouse annual gift tax exclusion: $148,000
The annual gift tax exclusion remains at $14,000
Federal Income Taxation of Estates and Trusts
If Taxable Income Is: The Tax Is:
- Not over $2,550 15% of the taxable income
- Over $2,550 but not over $5,950 $382.50+25% of excess over $2,550
- Over $5,950 but not over $9,050 $1,232.50+28% of excess over $5,950
- Over $9,050 but not over $12,400 $2,100.50 + 33% of excess over $9,050
- Over $12,400 $3,206 + 39.6% of excess over $12,400
New Jersey and New York State Estate Tax Exemption Amounts
The New Jersey state estate tax exemption amount remains unchanged at $675,000, one of the lowest state estate tax exemption amounts in the nation. In comparison, the New York state estate tax exemption amount is much more generous. The New York state estate tax exemption amount, which was changed as of April 1, 2014, is as follows:
- $2.0625 million for decedents dying between April 1, 2014 through March 31, 2015;
- $3.125 million for decedents dying between April 1, 2015 through March 31, 2016;
- $4.1875 million for decedents dying between April 1, 2016 through March 31, 2017;
- $5.25 million for decedents dying between April 1, 2017 through December 31, 2018.
Beginning in 2019, the exemption would be indexed for inflation, and equal to the federal exclusion.
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.
Medicare Premiums, Deductibles and Copayments for 2016
- Part B premium: $104.90/month (unchanged)
- Part B deductible: $147 (unchanged)
- Part A deductible: $1,288 (was $1,260)
- Co-payment for hospital stay days 61-90: $322/day (was $315)
- 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).
Changes in Social Security Benefits for 2016
Cost-of-Living Adjustment (COLA):
Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2016 as there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 to the third quarter of 2015.
Maximum Taxable Earnings:
Social Security (OASDI only) 7.65% Limit of $118,500 Medicare 1.45% No Limit Quarter of Coverage: $1,220
Retirement Earnings Exempt Amounts:
Under full retirement age: $15,720/yr.($1,310/mo.)
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual attains full retirement age: $41,880/yr. ($3,490/mo.)
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
NOTE: There is no limit on earnings beginning the month an individual attains full retirement age.
Social Security Disability Thresholds:
Substantial Gainful Activity (SGA): Non-Blind: $1,090/mo. Blind : $1,820/mo.
Trial Work Period: $780/mo.
Maximum Social Security Benefit for a Worker Retiring at Full Retirement Age: $2,663/mo.
SSI Federal Payment Standard: Individual: $733/mo. Couple: $1,100/mo.
SSI Resource Limits: Individual: $2,000 Couple: $3,000
For additional information concerning New Jersey elder law, visit: https://vanarellilaw.com/legal-services/
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