Mississippi has yet to adopt the federal/state partnership program although efforts have been made to do so. The state does offer state tax benefits if a consumer purchases a qualified long-term care insurance policy.
A credit is allowed against income taxes imposed under Chapter 7 in an amount equal to 25% of the premium costs paid during the taxable year for a qualified LTC insurance policy that offers coverage to either the individual, spouse, parent or parent-in-law, or dependent. The credit shall not exceed $500 or the taxpayer’s income tax liability, whichever is less, for each qualified LTC insurance policy. Any unused tax credit may not be carried forward to future tax years. No credit is allowed if the taxpayer deducted the premium amounts when net taxable income was calculated or the premiums were excluded from net taxable income.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $123,600.
A variety of products are approved in Mississippi for Long-Term Care planning.
Mississippi Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$3,241|
|Homemaker Services||Average Monthly Rate||$3,241|
|Adult Day Care||Average Monthly Rate||$758|
|Assisted Living||Average Monthly Cost||$3,493|
|Skilled Nursing Home||Semi-Private Monthly||$6,692|
|Skilled Nursing Home||Private Average Monthly||$7,087|