Both Medicare Part A and Part B, Part D, and any supplemental coverage, along with getting estimates for each part of Medicare can be easy.
Medicare Part A Cost – Hospital Coverage
Medicare Part B Cost – Medical Coverage
Example of Total Medicare Monthly Cost
How Do I Determine IRMAA
- Minimum dividends from any of your investments
- Capital gains
- Social Security Benefits
- Tax-deferred Pensions
- Your Roth IRAs and your Roth 401k
- Your life insurance policies
- Reverse mortgages
- Any of your health savings accounts
|Tax Filing Status||2021 MAGI||2021 Part B Premium Adjustment||2021 Part D Premium Adjustment|
|Single||$88,000 or Less||= $148.50||–|
|$88,000.01 – $111,000||+ $59.40 = $207.90||+ $12.30|
|$111,000.01 – $138,000||+ $148.50 = $297.00||+ $31.80|
|$138,000.01 – $165,000||+ $237.60 = $386.10||+ $51.20|
|$165,000.01 – $499,999||+ $326.70 = $475.20||+ $70.70|
|More than $500,000||+ $356.40 = $504.90||+ $77.10|
|Married||$176,000 or Less||= $148.50||–|
|$176,000.01 – $222,000||+ $59.40 = $207.90||+ $12.30|
|$222,000.01 – $276,000||+ $148.50 = $297.00||+ $31.80|
|$276,000.01 – $330,000||+ $237.60 = $386.10||+ $51.20|
|$330,000.01 – $799,999||+ $326.70 = $475.20||+ $70.70|
|More than $750,000||+ $356.40 = $504.90||+ $77.10|
Medicare Part D – Prescription Drug Plan Cost
- If you make $88k or less individually/Married and Separate Tax Return or $176k or less jointly, you will pay the plan premium.
- If you make $88k – $111k individually or above $176k – $222k jointly, there will be an extra cost of $12.30 plus your plan premium.
- If you make above $111k – $138k individually or above $222k – $276k jointly, you will pay $31.80 plus your plan premium.
- If you make above $138k – $165k individually or above $276k – $330k jointly, you will pay $51.20 plus your plan premium.
- If you make above $165k but less than $500k individually or above $330k but less than $750k jointly or above $88k and less than $412k but file married and separate tax returns, then you’ll pay $70.70 plus your plan premium.
- If you make $500k or more individually, $750k, and more jointly or $412k and more but file married and separate tax returns, then you’ll pay $77.10 plus your plan premium.
How do I pay for Medicare?
When it comes to Medicare and paying for it if you are taking your Social Security the monthly cost for Part B will be deducted from your Social Security check; you can also choose to have your monthly Part D cost deducted your Social Security benefits.
If you enroll into Medicare Part B and Part D and currently not receiving your Social Security benefits, you will be billed by Medicare for premiums once every quarter; which may result in a confusing first billing for Part B cost. If you are going to pay directly for your Medicare costs you may be able to use your credit card or HSA monies to pay for Medicare Part B and Part D, as well as set up a monthly deduction with Medicare for Part B and with your Part D carrier these costs.
Check with your plan to see if there is a set copayment or coinsurance for your prescription drugs. If there is a fixed amount, you usually would want to pick the plan with the lowest overall annual cost per year.
Can I Deduct These Premiums from My Taxes?
All your premiums for Medicare are considered part of your medical expenses and are therefore tax-deductible. If any of your medical expenses exceed 10% of your adjusted gross income for the year, you will be able to deduct them on your taxes. This will then probably exclude a portion of your total income from being taxed. As with anything involving your taxes, it’s best to consult a professional in the industry for extra guidance for any questions you may have or concerns when it comes time to do your taxes.