Below are figures for 2017 that are frequently used in the elder law practice or are of interest to clients.
Medicaid Spousal Impoverishment Figures for 2017
The new minimum community spouse resource allowance (CSRA) is $24,180 and the maximum CSRA is $120,900. The maximum monthly maintenance needs allowance is $3,022.50. The minimum monthly maintenance needs allowance remains $2,002.50 ($2,502.50 for Alaska and $2,302.25 for Hawaii) until July 1, 2017.
Medicaid Home Equity Limits
The income cap for 2017 applicable in “income cap” states is $2,205 a month.
Gift and estate tax figures
Federal estate tax exemption: $5.49 million for individuals
Lifetime tax exclusion for gifts: $5.49 million
Generation-skipping transfer tax exemption: $5.49 million
The annual gift tax exclusion remains at $14,000.
Long-Term Care Premium Deductibility Limits for 2017
The Internal Revenue Service has announced the 2017 limitations on the deductibility of long-term care insurance premiums from income. 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||$410|
|More than 40 but not more than 50||$770|
|More than 50 but not more than 60||$1,530|
|More than 60 but not more than 70||$4,090|
|More than 70||$5,110|
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 $360 per day (for 2017), whichever is greater.
For these and other inflation adjustments from the IRS, click here.
Medicare Premiums, Deductibles and Copayments for 2017
- Part B premium: $109/month (was $104.90)
- Part B premium for beneficiaries not “held harmless”: $134/month (was $121.80)
- Part B deductible: $183 (was $166)
- Part A deductible: $1,316 (was $1,288)
- Co-payment for hospital stay days 61-90: $329/day (was $322)
- Co-payment for hospital stay days 91 and beyond: $658/day (was $644)
- Skilled nursing facility co-payment, days 21-100: $164.50/day (was $161)
Part B 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 $187.50 (was $170.50).
- 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 $267.90 (was $243.60).
- 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 $348.30 (was $316.70).
- 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 $428.60 (was $389.80).
High-earner premiums 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 $348.30 (was $316.70).
- Those with incomes greater than $129,000 will pay a monthly premium of $428.60 (was $389.80).
For “Medicare 2016 and 2017 costs at a glance,” click here.
Social Security Benefits for 2017
The new monthly federal Supplemental Security Income (SSI) payment standard is $735 for an individual and $1,103 for a couple.
Estimated average monthly Social Security retirement payment: $1,360 a month (was $1,341) for individuals and $2,260 (was $2,212) for couples
Maximum amount of earnings subject to Social Security taxation: $127,200 (was $118,500)
For a complete list of the 2017 Social Security figures, go to: https://www.ssa.gov/news/press/factsheets/colafacts2017.pdf