My wife and I pay a high-income surcharge for our Medicare Part B premiums based on our income from more than a year ago. But we’ve since retired, and our combined incomes are now less than $30,000. Can we get these premiums reduced?
Yes. The high-income surcharge for Medicare Part B is based on your last tax return on record. So if your adjusted gross income was more than $170,000 on a joint return in 2008 (or more than $85,000 if single), you and your spouse may both have to pay $154.70 (or more) per month for Medicare Part B in 2010. See What’s in Store for Medicare Part B Premiums for details.
But you can get your premiums reduced if your income has dropped since then because of a “life-changing event.” That includes marriage, divorce, job loss or reduced work hours (including retirement), loss of income from income-producing property or cuts in pension benefits. Because your joint income is now $30,000, you should each end up paying the standard $96.40 per month.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Fill out the Medicare Part B Income-Related Premium – Life Changing Event form. You’ll need to estimate your income for the year and provide evidence of the change, which could include a statement from your former employer verifying that you’ve retired.
Got a question? E-mail me at askkim@kiplinger.com.
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
Embracing Generative AI for Financial SuccessGenerative AI has the potential to reshape how we approach learning about and managing our personal finances.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
