Could my Tax Return affect my Medicare Premiums?

 

Yes, your tax return can affect your Medicare premiums. Medicare uses your modified adjusted gross income (MAGI) from your tax return to determine how much you pay in premiums for Medicare Part B and Part D. Your MAGI is your total adjusted gross income plus any tax-exempt interest income.

If your MAGI is above a certain threshold, you may have to pay higher Medicare premiums. The thresholds for higher Medicare premiums in 2023 are:

• Part B: $97,000 for individuals and $194,000 for married couples filing jointly
• Part D: $97,000 for individuals and $194,000 for married couples filing jointly

If your MAGI is above these thresholds, you will pay a higher Part B and/or Part D premium, depending on your income. The higher premiums are based on a sliding scale, so the higher your income, the higher your premium will be.

You can use the Medicare Income-Related Monthly Adjustment Amount (IRMAA) calculator to estimate your Medicare premiums based on your MAGI.

Here are some tips to help you manage your Medicare premiums:

• If you are eligible for Medicare savings programs, such as Extra Help or Medicare Savings Programs, you may be able to get help paying for your Medicare premiums.
• If your income is above the thresholds for higher Medicare premiums, you may be able to reduce your premiums by lowering your MAGI. You can do this by contributing to pre-tax retirement accounts, such as a 401(k) or IRA, or by taking advantage of tax deductions.
• If you are married and your spouse is not eligible for Medicare, you may be able to lower your Medicare premiums by enrolling in your spouse's employer-sponsored health insurance plan.

If you have any questions about your Medicare premiums, you can contact Medicare at 1-800-MEDICARE (1-800-633-4227). Have questions about your current plan and this upcoming Annual Enrollment period click on this the permission to contact link and a licensed agent will be in contact.