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How to calculate a Medicare deduction from Social Security

As the fastest-growing segment of the U.S. population, today’s seniors participate in Medicare, which provides health insurance to citizens over the age of 65 or who have a debilitating condition classified as “disabled.” Initially, Medicare only had a “standard deduction” withheld from Medicare participants’ Social Security checks, but starting in June 2007, when wealthier “baby boomers” joined the ranks of the elderly, the sliding score scale was given based on the Medicare Deduction for these wealthy seniors on earned income. report to the Internal Revenue Service.

How to Calculate the Medicare Deduction From Social Security
How to Calculate the Medicare Deduction From Social Security

Step 1

Contact your accountant or review your records and receive total taxable adjusted income and tax-exempt interest income from your most recent tax filing. Add taxable adjusted gross income and tax-exempt interest income to determine your revised total adjusted income.

Step 2

Take a close look at your income tax return status. “Married co-applicants” with incomes of more than $170,000 in 2010 will pay higher Part B Medicare premiums. If your filing status is not “married, general filing,” you will have to pay a higher premium if your revised total adjusted income exceeds $85,000.

Step 3

Look at the chart for “Monthly Part B Premiums for 2010” to calculate your approximate total monthly premiums. Note that there is a separate chart for people who live with their spouses at some point in the taxable year, but have filed their own tax returns.

Alert

This information has been updated since July 2010. The U.S. Department of Health and Human Services may adjust this process and the metrics on the reference chart at any time.

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