Every year, the income from either the previous year or the year before that (I'm not sure which) is used to determine the Medicare premium for the calendar year. If your income goes down enough, the premium decreases. I was told that if there's a major life change--for instance, stop working if still working after full retirement age, or death of a spouse--you can call Medicare and ask them to reconsider. So far, I'm still working so I haven't had the opportunity to check this out.
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From: VpKing77 vpking77@yahoo.com>
To: vpFREE@yahoogroups.com
Sent: Tuesday, January 22, 2013 5:29 AM
Subject: [vpFREE] Re: W-2G and Medicare premiums
Could someone explain this to me as I almost 62. If I have $200k to $300K in W-2Gs and still end up losing for the year will my Medicare premium be based on my net income or my income before I take my loss deduction. It seems to me it would cost several thousand more per year. An extra $190 a month. How long does the penalty last?
--- In mailto:vpFREE%40yahoogroups.com, "kcace1024" wrote:
>
> If you will be 63 this year you need to know that your W-2Gs can increase your Medicare Part B and D premiums when you turn 65 in 2015. Social Security uses your modified adjusted gross income (MAGI) from 2 years ago to determine your current year premiums. Your Social Security benefit is not affected, but most people have Medicare premiums taken out of their SS check.
>
> The basic Part B premium for 2013 is $104.90 and I will list the higher levels below.
>
> Level 1 - $146.90 (104.90 + 42.00)
> single income $85,000 - $107,000
> married income $170,000 - $214,000
>
> Level 2 - $209.80 (104.90 + 104.90)
> single income $107,000 - $160,000
> married income $214,000 - $320,000
>
> Level 3 - $272.70 (104.90 + 167.80)
> single income $160,000 - $214,000
> married income $320.000 -$428,000
>
> Level 4 - $335.70 )104.90 + 230.80)
> single income over $214,000
> married income over $428,000
>
> Part D is for the drug plan and is also affected, but you may not need Part D and the premiums are much smaller.
>
> A friend of mine just turned 65 and found out he is well over the Level 4 cutoff. You can take a chance and refuse Medicare Part B if you are healthy and enroll after you reduce your gambling income. There is a penalty for every year you delay.
>
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