Tax & Medicaid Law Updates for 2022

In this issue of the DiGiorgio Law Firm, PLLC Estate Planning Newsletter we highlight some of the key rates and resource levels in the Tax & Medicaid law which are in effect for 2022.

  1. Key Tax Rates in effect for 2022
  2. Top Marginal Corporate Tax Rate 21%;
  3. Tax Rates on Capital Gains: 0% for individuals with income up to $41,675 and couples up to $83,350; 15% for individuals up to $445,850 and couples up to $501,600; 20% for individuals over $459,750 and couples over $517,200;
  4. Top Income Tax Rates: 10% for individuals up to $10,275 and couples up to $20,550; then12% for individuals up to $41,775 and couples up to $83,550; then 22% for individuals up to $89,075 and couples up to $178,150; then 24% for individuals up to $170,050 and couples up to $340,100; then 32% for individuals up to $215,950 and couples up to $431,900; then 35% for individuals up to $539,900 and couples up to $647,850; and then a top rate of 37% for individuals over $539,900 and couples over $647,850;
  5. 2022 Standard Deduction $12,950 for an individual and $25,900 for couples;
  6. Federal Exemptions for Estate, Gift and GST Tax increased to $12,060,000 in 2022;
  7. Top Marginal Federal Estate Tax Rate: 40%;
  8. Federal Gift Tax Annual Exclusion remains at $16,000;
  9. New York State Exemption from Estate Tax $6,110,000 as of July 1, 2022;
  10. Top Marginal NY Estate Tax Rate: 16%;
  11. Wages Subject to Social Security Tax in 2022: $147,000;
  12. Medicaid Resource & Income Eligibility Levels for 2022
  13. Resource Levels for Chronic Care Medicaid (Nursing Home) $16,800 for the Medicaid Recipient & the greater of $74,820 or ½ of combined spousal resources up to $137,400
  14. Monthly Income for Chronic Care: $50 for the recipient and $3,435 for the community spouse;
  15. Resource Levels for Community Care: $16,800 for the applicant and $24,600 for the Community Spouse;
  16. Income Levels for Community Care: $934 Individual or $1,367 for a couple
  • Some Quick Facts about Medicaid
  • Transfers within 5 years of application result in a period of ineligibility for Chronic Care (nursing home) Medicaid purposes;
  • If you need nursing home care immediately and you did not plan 5 years in advance there are still some things you can do to protect at least some of your assets and you should consult with an attorney who specializes in Medicaid planning;
  • If you need Nursing Home Care less than 5 years after establishing an Irrevocable Medicaid Asset Protection Trust, under certain circumstances NY Law may allow you to fully or partially revoke the Irrevocable Trust to access Trust funds for your care;
  • A new 30 month look back period became applicable to transfers for Community Care Medicaid, as of October 1, 2020, but on account of COVID, implementation of this new lookback period for home care has been deferred to April 1, 2022;
  • If you are applying for Community Medicaid and you have excess income, you may be able to preserve some of that income by spending it down into a “Pooled Trust”;
  • You may be able to choose your own care providers through the Consumer Directed Assistance Program when applying for Community Medicaid.

The owner of this website has made a commitment to accessibility and inclusion, please report any problems that you encounter using the contact form on this website. This site uses the WP ADA Compliance Check plugin to enhance accessibility.