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Valued Social Butterfly

Re: What Do You Think of This Tax ? Is it a tax or an additional premium ?

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rker321 wrote:

GailL1 wrote:

rker321 wrote:

Gail  I wish I could answer your question. but as you know I don't do our taxes. so we simply provide the information and our tax accountand does the rest.


Oh, you would know if you paid it monthly and it would be one of those cost figures which you would supply to your accountant just like your monthly Medicare Part B premiums.


Gail is that some kind of a premium  like an Insurance premium.?  Is that the amount that I pay to Medicare each month on my SS check?  


Yes, but higher income folks on Medicare ( above $ 85,000 single / $ 170,000 couple) pay a much higher amount than what most seniors pay. ( in 2018, most seniors will pay $ 134 per month for Part B - paid out of your SS check or if no SS check, they bill you and you send them a check - quarterly, in advance, I believe)

 

This describes the history of IRMMA and what it is used for -

Seems the higher income seniors are doing their part in keeping these parts (B & D ) of Medicare trucking along.

 

KFF 06/03/2015 - Medicare’s Income-Related Premiums: A Data Note

Figure 3: Medicare Part B and Part D Income-Related Premiums Before and After 2018

 

The current 2018 amounts - these are IN ADDITION to the regular premiums.

 

IRMAA Medicare Premium Surcharges In 2018

 

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Valued Social Butterfly

Re: What Do You Think of This Tax ? Is it a tax or an additional premium ?

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GailL1 wrote:

rker321 wrote:

Gail  I wish I could answer your question. but as you know I don't do our taxes. so we simply provide the information and our tax accountand does the rest.


Oh, you would know if you paid it monthly and it would be one of those cost figures which you would supply to your accountant just like your monthly Medicare Part B premiums.


Gail is that some kind of a premium  like an Insurance premium.?  Is that the amount that I pay to Medicare each month on my SS check?  

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Valued Social Butterfly

Re: What Do You Think of This Tax ? Is it a tax or an additional premium ?

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@Snoopy48

 

Think the ruling force here would be the IRS -

 

Why is it considered a premium (above everybody else's)

Seems more like a tax to me - think about where this money goes; there is NO additional benefits - everybody gets the same benefits or options as to get their (same) benefits.

 

Does everybody understand why these Schedule A - Medical / Dental expenses - this one, according to your tax expert, and others - are geared towards the higher income folks.  What the majority of Americans save in taxes is peanuts compared to those in the higher income categories.

 

Only 30% of all taxpayers itemize with the overwhelming number of them being in the higher middle to higher income brackets.

 

 

 

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Valued Social Butterfly

Re: What Do You Think of This Tax ? Is it a tax or an additional premium ?

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Message 4 of 7

rker321 wrote:

Gail  I wish I could answer your question. but as you know I don't do our taxes. so we simply provide the information and our tax accountand does the rest.


Oh, you would know if you paid it monthly and it would be one of those cost figures which you would supply to your accountant just like your monthly Medicare Part B premiums.

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Valued Social Butterfly

Re: What Do You Think of This Tax ? Is it a tax or an additional premium ?

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According to a tax advisor who posted on JustAnswer.com it is a premium that can be deducted.

 

“Hello and thanks for trusting me to help you today. I am a tax adviser with over 20 years of experience.
IRMMA is the Income-Related Monthly Adjustment Amount that can be applied to a Medicare beneficiary’s Medicare Part D and Medicare Part B premiums. IRMMA affects only those Medicare beneficiaries who have high incomes.
To break it all down:
1)If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. The payroll tax paid for Medicare A is NOT a medical expense.
2)Medicare B is a supplemental medical insurance. Premiums you pay for Medicare B ARE a medical expense. Check the information you received from the Social Security Administration to find out your premium.
3)Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. You CAN include as a medical expense premiums you pay for Medicare D.
The IRMMA is under both B and D so yes you can use those amounts on Schedule A and add to medical expenses paid.”

 

https://www.justanswer.com/tax/8y5u8-irmma-payments-deducted-federal-income-taxes.html

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Valued Social Butterfly

Re: What Do You Think of This Tax ? Is it a tax or an additional premium ?

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Gail  I wish I could answer your question. but as you know I don't do our taxes. so we simply provide the information and our tax accountand does the rest.

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Valued Social Butterfly

What Do You Think of This Tax ? Is it a tax or an additional premium ?

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What do you think of the Medicare IRMMA ?

 

Are you or you and your spouse affected by it ?

 

Do you consider it as an additional premium on your taxes - meaning that you include it in your figuring of itemized deductions on Schedule A - Medical/Dental deductions.

 

Or do you consider it a tax ?  A deductible tax but how so?

 

Just more of our complicated tax and taxing structure.

 

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