When calculating how much medicare will cost, based on one's income, is it gross income or the adjusted income on taxes, or Social Security income that is used? I saw that after a certain threshold it costs $50 more per month. The threshold I'm not even sure about.
Thanks for your question. Medicare premiums are calculated based on the applicant’s “Modified Adjusted Gross Income” or MAGI. MAGI is the total Adjusted Gross Income plus tax-exempt interest income. After certain thresholds, the applicant will pay higher premiums. Below is a link to the Social Security Administration’s 2017 document: “Medicare Premiums: Rules for Higher-Income Beneficiaries”. There is a chart in the documentthat shows the higher premium amounts required for beneficiaries in different tax brackets.
Thank you Shelly. That document is very clear. It appears that the fees are fluid from year to year, depending on one's income. Ilene
Thanks for asking such a great question that I'm sure others had also.
Retrieving data ...