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Old 01-19-2017, 02:55 PM
 
Location: Cushing OK
14,547 posts, read 17,540,572 times
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Quote:
Originally Posted by mathjak107 View Post
medicare looks at income 2 years prior when setting your yearly premium so once you are within two years of medicare it is going to effect you .

each year your premium is adjusted based on the last tax form filed , that would be the one two years ago since last year is not filed yet .

each year you are reset again to the new tax return .
I'm getting the basic 12,000 a year. I believe the source now is my husbands, though I was getting disability. It won't change when I turn 65 in May. But I am considering trying to sell my house and relocate. I'd get maybe 15k for it and hope to relocated to something close to that.

Would this change my payment? It is intended (assuming I do this) to allow me to move closer to family.
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Old 01-19-2017, 03:32 PM
 
71,517 posts, read 71,694,121 times
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no .
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Old 01-19-2017, 04:16 PM
 
Location: Backwoods of Maine
7,111 posts, read 8,150,955 times
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This is an honest question.

Wife and I are not on Medicare, at ages 67 and 69. My questions are:

* Does everyone here believe that Medicare is mandatory for those over 65? Because it is not.
* Does everyone here believe that Medicare (esp with Part D and supplement) is necessrily less expensive than private insurance? Because it seems to me that it might not be. Anybody do a comparison?

I ask, because SSA told me that many people decline to participate in Medicare, and if it is less expensive and/or better in some way, why is this? From the little I know of it, and the issues I see brought up here about it, I just wonder....
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Old 01-19-2017, 04:20 PM
 
71,517 posts, read 71,694,121 times
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medicare and f-plan are much cheaper than my aca plan with it's thousands in deductible and out of pockets .
my wife is on medicare and i am pre 65 so i had to grab an aca plan . the aca plan is crap and i can't wait until october when i go on medicare and supplement and i can have some things done that right now would cost me thousands .

for 100 bucks a month i can get a high deductible f-plan with a 2k deductible . a regular f-plan cost 2k more so we don't even come close to spending 2k in supplement expenses . not only does it cost 100 a month but it pays for our gym which is 40 a month through silver sneakers and i get to deduct the premiums as part of our medical .

it is a great deal for us .
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Old 01-19-2017, 05:36 PM
 
Location: NC
6,549 posts, read 7,970,518 times
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If you do not start Medicare when you turn 65, but decide later to use Medicare, you will pay higher premiums than people who started when they turned 65. I imagine that is because at 65 most people pay in more than they use, so you get a little break premium-wise if you start it from day zero.

As to paying the extra on Medicare, for me one year it was triggered by making some money on a second home I sold, and the second time it was for selling a slice of a larger piece of property. In neither case was I selling my primary residence. When I sell my primary residence yes I am eligible for the 250K forgiveness on earnings used for Fed Taxes, but I will be charged the Medicare tax, full state taxes, plus capital gains on anything over the basis+250K that I clear.

In the OP's situation, if all you want to do is avoid the extra Medicare tax (for a year?) you should close on the sale before your husband reaches 63. That might be hard to do at this point. They got ya.
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Old 01-20-2017, 06:56 AM
 
30,073 posts, read 47,320,143 times
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Quote:
Originally Posted by dj10 View Post
I was not aware that selling a home could affect your Medicare and Part D premiums. I am planning on selling my home in one to two years.


Since the OP is selling a rental property I believe that is different from selling your primary residence. With a primary residence isn't there a tax exemption of $250,000 (for a single person) on any capital gains? Any profit I make wouldn't be near that. Am I right in assuming that with the exemption I wouldn't have to worry about any Medicare premium changes?
Isn't the first X amount of profit from selling a primary home exempt from income tax?

My son and his wife sold their home couple of years ago and made good profit...
None of it was subject to tax...

And IF MAGI goes over the minimum that Medicare tax penalties are calculated at you WILL ave an upwards tick on your premiums--two yrs from filing that tax return...

The person who posted their premiums had not gone up must not meet the income limit.
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Old 01-20-2017, 07:00 AM
 
71,517 posts, read 71,694,121 times
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it is only that which is over the exclusion amount that counts when selling a primary residence
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Old 01-20-2017, 07:10 AM
 
30,073 posts, read 47,320,143 times
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Quote:
Originally Posted by mathjak107 View Post
it is only that which is over the exclusion amount that counts when selling a primary residence
500K for a couple
And 250K for individual
Correct?
Most people don't go over those limits in my experience...
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Old 01-20-2017, 07:11 AM
 
71,517 posts, read 71,694,121 times
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many do in our area ... heck my old home in long island was 35k in the 1970's today it is 650k . the tristate area can easily go over . the problem is many who sell sell a few years after a death of a spouse and after 2 years they only get the single exclusion amount not the couple ..
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Old 01-20-2017, 07:16 AM
 
Location: SoCal
13,221 posts, read 6,320,879 times
Reputation: 9827
It exceeds in my area many times over.
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