For retirees who booked a large capital gain in 2024, the Income-Related Monthly Adjustment Amount is now adding thousands of dollars to their Part B and Part D Medicare premiums.
The surcharge stems from Medicare's two-year lookback rule, which pulls modified adjusted gross income (MAGI) from a prior tax return to calculate current-year costs.
A married couple filing jointly with a $210,000 taxable gain layered on top of roughly $130,000 in other retirement income could face combined surcharges exceeding $5,600 for the year, 24/7 Wall St. reported.
The surcharge applies even though the gain was a one-time event, because Medicare treats it the same as recurring income.
The Social Security Administration uses MAGI from the tax return filed two years prior to set surcharge levels.
The surcharge stems from Medicare's two-year lookback rule, which pulls modified adjusted gross income (MAGI) from a prior tax return to calculate current-year costs.
A married couple filing jointly with a $210,000 taxable gain layered on top of roughly $130,000 in other retirement income could face combined surcharges exceeding $5,600 for the year, 24/7 Wall St. reported.
The surcharge applies even though the gain was a one-time event, because Medicare treats it the same as recurring income.
The Social Security Administration uses MAGI from the tax return filed two years prior to set surcharge levels.
3 months ago
