Below are figures for 2012 that are frequently used in the estate and elder law practice or are of interest to clients.
Medicaid Spousal Impoverishment Figures for 2012
The new minimum community spouse resource allowance (CSRA) is $22,728, and the new maximum CSRA is $113,640. The new maximum monthly maintenance needs allowance is $2,841. The minimum monthly maintenance needs allowance remains $1,838.75 until July 1, 2012.
The new Community Spouse Monthly Housing Allowance for all States except Alaska and Hawaii is $551.63.
The income cap for 2012 applicable in “income cap” states will be $2,094 a month.
Medicaid Home Equity Limit
Minimum: $525,000; Maximum: $786,000.
Gift And Estate Tax Figures
- Federal estate tax exemption: $5.12 million for individuals.
- Lifetime tax exclusion for gifts: $5.12 million.
- Generation-skipping transfer tax exemption: $5.12 million.
- The annual gift tax exclusion remains at $13,000.
Long-Term Care Premium Deductibility Limits For 2012
The Internal Revenue Service has announced the 2012 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||$350|
|More than 40 but not more than 50||$660|
|More than 50 but not more than 60||$1,310|
|More than 60 but not more than 70||$3,500|
|More than 70||$4,370|
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 $310 per day (for 2012), whichever is greater.
Medicare Premiums, Deductibles And Copayments For 2012
- Basic Part B premium: $99.90/month (was $96.40 for most beneficiaries).
- Part B deductible: $140 (was $162).
- Part A deductible: $1,156 (was $1,132).
- Co-payment for hospital stay days 61-90: $289/day (was $283).
- Co-payment for hospital stay days 91 and beyond: $578/day (was $566).
- Skilled nursing facility co-payment, days 21-100: $144.50/day (was $141.50).
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 $139.90 (was $161.50).
- 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 $199.80 (was $230.70).
- Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 in 2010 will pay a monthly premium of $259.70 (was $299.90).
- Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more in 2010 will pay a monthly premium of $319.70 (was $369.10).
Rates differ for beneficiaries who are married but file a separate tax return from their spouse:
- Those with incomes between $85,000 and $128,000 will pay a monthly premium of $259.70 (was $299.90).
- Those with incomes greater than $128,000 will pay a monthly premium of $319.70 (was $369.10).
Social Security Benefit Changes For 2012
- Monthly federal Supplemental Security Income (SSI) benefit amount will be $698 for an individual and $1,048 for a couple. The New Jersey monthly supplement remains $31.25.
- Monthly Social Security and SSI income limit indicating an individual receiving benefits based upon disability or blindness is engaging in Substantial Gainful Activity (SGA) is $1,010 (disabled) and $1,690 (blind).
- Average monthly Social Security retirement payment: $1,229 a month (was $1,186) for individuals and $1,994 (was $1,925) for couples.
- Maximum amount of earnings subject to Social Security taxation: $110,100 (was $106,800).
(Information obtained from the ElderlawAnswers website.)
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