reminder-watch your magi this year (crying, single, taxable, medicare)

[rjm1cc]

You can appeal the increase. Thus 2015 income 1,000,000 and 2016 income is 30,000. You can appeal the 2016 assessment in 2016. You estimate the 2016 income. I think medicare does check your actual income in 2017 and will back charge you if you should have paid more in 2016. Any input on how accurate I am? Look at Office of Medicare Hearings and Appeals (OMHA) | HHS.gov

[BellaDL]

Originally Posted by Perryinva

So what were the amounts for 2016?

Perryinva,

The pre-2018 rates are the current rate for 2016. My husband 2016's medicare was initially based on our 2014 income. I 'appealed' the rate due the life changing event of my work stoppage in 2015. We gave SS office an estimate of our 2016 income at around $210K (since I was thinking of doing Roth conversion up to the $214K ceiling of the 65% range.

My husband is currently paying $170.50 for part B and $12.70 surcharge for part D

Medicare Part B Premiums in 2016-Kiplinger

What You'll Pay Medicare Part D Coverage-Kiplinger

From the information cited by mathjak, I think we will reduce or Roth conversion this year to stay below $170K limit (50% in 2016/2017 and 65% in 2018).. I hope to get a 'refund' from SS office. This is what they told us that if your actual 2016 magi is lower than our estimate, we will get a refund.

[Perryinva]

So the actual dollar amount is really not that significant. Lowest one would pay in B/D is about $120, and with an income of of $210k it goes up to $183? So a difference of an extra $753/yr. So as long as the increased rollover does not cause that kind of increase, it works. Just have to be moderately careful , but typically one doesn't have the choice, the difference is more than that kind of money.

I would assume that the sale of a residence would not count as income and therefore not part if the equation. Only income property and such.

[GeoffD]

Originally Posted by Perryinva

I would assume that the sale of a residence would not count as income and therefore not part if the equation. Only income property and such.

If you have a capital gain above and beyond the exclusion, the capital gain would certainly count as income. That's the kind of event you appeal. I doubt that if you did IRA/401(k) to Roth IRA shifting over several years that you could appeal that.

[mathjak107]

Originally Posted by Perryinva

So the actual dollar amount is really not that significant. Lowest one would pay in B/D is about $120, and with an income of of $210k it goes up to $183? So a difference of an extra $753/yr. So as long as the increased rollover does not cause that kind of increase, it works. Just have to be moderately careful , but typically one doesn't have the choice, the difference is more than that kind of money.

I would assume that the sale of a residence would not count as income and therefore not part if the equation. Only income property and such.

we tripped the 268.00 plus 72.90 which is added to the base rate from medicare .we were up around 400 per person in total premium just for medicare .

[mathjak107]

Originally Posted by GeoffD

If you have a capital gain above and beyond the exclusion, the capital gain would certainly count as income. That's the kind of event you appeal. I doubt that if you did IRA/401(k) to Roth IRA shifting over several years that you could appeal that.

capital gains alone are not grounds for appeal . the premium stands if you sold any asset . .

they have a definitive list of reasons you would not be increased as far as the gains .

while one of the items listed is loss of income property , they do not mean selling it . they mean arson ,theft or fraud .

ours was appealed on the basis of a life changing event . the sale of the lease rights and our income from working had us close to 7 figures for 2014 .

the fact that we both stopped work in 2015 and taxable income fell to under 6 figures since we set a side cash to live on qualified as a life changing event so they approved the appeal .

[Escort Rider]

I am not arguing that it's better to be poor, but it does have its advantages. In this case the advantage is that I don't have to agonize about stuff like this. I will always be poor (single filer, less than $85,000 per year in modified adjusted gross income) unless I win the lottery and since I don't play the lottery I'm not going to win it!


But more power to all you normal people out there! I am actually content with the little I have.

[LookingatFL]

As far as the sale of your house goes: Per TRA86 (Tax Reform Act of 1986), if you lived in your primary residence 2 of the last 5 years there is no tax on capital gain of $500K for a married couple or $250K for a single person when you sell your primary residence. This means that the exclusion does not get reported on your income tax return, you will not receive a 1099-S. The additional medicare tax will not be computed on the excluded capital gain.

[mathjak107]

there are a couple of hitches to know though .

any vacation homes or rentals converted to primary residences get pro-rated now . you do not get the entire exclusion . so depending how long you own it in total and how long it served as a primary you get a fraction of the exclusion .

a single who owned a 2nd home or a rental for 10 years and used it the last 5 as a primary gets 50% of the 250k exclusion .

a married couple who owned a property 12 years and used it as a rental for 9 years but had it a primary the last 3 years would get 1/4 of the 500k exclusion since 3 years is 1/4 of 12 years .

in our area lots of owners bought many many years ago and have whopper of taxable gains . our first house cost 35k in 1975 . today they are selling for almost 700k .

[chiluvr1228]

I saw this thread title under "Active Threads" and thought it was going to be about Christmas and manger scenes. LOL.