Missouri Senate backs income tax break for long-term healthcare savings


Young woman in bed suffering from cancer. Thoughtful woman battling with tumor looking out of window. Young patient with blue headscarf recovery in hospital on bed.

JEFFERSON CITY, Mo. — 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.

Tracking Coronavirus

More Tracking Coronavirus



More News