Federal Partnership Program
Mississippi has yet to adopt the federal/state partnership program although efforts have been made to do so. The state does, however, offer state tax benefits if a consumer purchases a qualified long-term care insurance policy.
Since Mississippi has not yet adopted the federal long-term care partnership program there is no current reciprocity with other partnership states. This means if you own a partnership policy from another state and move into Mississippi your dollar-for-dollar asset protection will not be honored. However, you can receive benefits in the state from your policy.
Long-Term Care Medicaid spend down is $4,000. A spouse’s minimum asset allowance is $128,640 Your spouse’s minimum monthly income allowance is $3,216. * The home equity limit is $595,000.
For more information about the Medicaid program visit www.medicaid.gov.
Products Approved in Mississippi
A variety of products are approved in Mississippi for Long-Term Care planning. These include tradition policies, short-duration plans, and asset-based plans.
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 Long-Term Care 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.
*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.