Missouri Senate backs tax break for long-term care savings
JEFFERSON CITY, Mo. (AP) — The Missouri Senate passed legislation Thursday that would provide a new tax incentive for people to save money for long-term care expenses of the chronically ill.
The bill would allow individuals to deduct up to $4,000 annually, and married couples up to $8,000, from their state income taxes for money placed in a “long-term dignity savings account.” The concept is similar to state tax breaks that already exist for college savings accounts.
The tax-free accounts could be opened beginning in 2021 and could used for a person’s own future care or for that of someone else.
The bill now goes to the House for consideration.
Legislative researchers estimate the bill could result in a loss of around $5 million annually in state tax revenues.