This particular question always arises when some successful professionals start looking for Medicare. If your income rate is high and you are in search of Medicare, you must know that there are several ways through which you may get qualified for it.
But it is also mandatory to know the Medicare beneficiaries with relatively higher incomes have to pay more for their Medicare Part B and Part D.
Points to remember for the high income holders:
- A single person with an income of at least $85,000 has to pay higher for the Part B premium per month.
- Married persons with an income of at least $85,000 have to pay higher for the Part B premium per month.
- Those with higher salary and having Plan D have to pay more than the Standard Plan’s premium.
- Employees can’t request for extra withholding, specifically for the additional Medicare tax.
- High salary holders can request for additional withholding on Form W-4.
- If certain employees work for two separate employers but the payroll agent is same for both employers, the agent should not combine wages for the withhold threshold purpose.
Strategies to avoid high premiums:
Modified Adjusted Gross Income (MAGI) is the main factor while you are thinking about lowering your premium charges. This is the factor that the government considers while determining your Medicare premium.
Report the changes in your income:
If your income has recently gone down, you must contact the Social Security Administrator (SSA) which will lead to substantial changes in your Medicare premiums.
If you are having assets that you want to get rid of, it’s important to consider their effect on your income and Medicare payments.
Benefits of Deductions:
If your income is going to rise in the present year, it’s important to use your deductions for lowering your Medicare premiums. Charitable contributions can be made use of in this regard.