Q:

How does Medicare define your income when determining your Medicare Part B premium?

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Quick Answer

Medicare uses an individual's tax filing status and modified adjusted gross income from 2 years prior to determine his Medicare Part B premium. For example, in 2014, Medicare used the 2012 tax return, while in 2015, Medicare uses the 2013 tax return. Because of this, how much an enrollee pays can fluctuate from year to year.

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Full Answer

The standard monthly Medicare Part B premium in 2015 is $104.90 per month for single filers with modified adjusted gross incomes of less than $85,000 and joint filers with modified adjusted gross incomes of less than $170,000 during the 2013 tax year.

Medicare charges an Income Related Monthly Adjustment Amount for high-income earners. In 2015, single filers with modified adjusted gross incomes of between $85,001 and $107,000 and joint filers with modified adjusted gross incomes of between $170,001 and $214,000 during the 2013 tax year pay a $146.90 Medicare Part B premium.

Single filers with modified adjusted gross incomes of between $107,001 and $160,000 and joint filers with modified adjusted gross incomes of between $214,001 and $320,000 during the 2013 tax year pay a $209.80 Medicare Part B premium.

Also in 2015, single filers with modified adjusted gross incomes of between $160,001 and $214,000 and joint filers with modified adjusted gross incomes of between $320,000 and $428,000 during the 2013 tax year pay a $272.70 Medicare Part B premium.

Single filers with modified adjusted gross incomes of more than $214,000 and joint filers with modified adjusted gross incomes of more than $428,000 pay a $335.70 Medicare Part B premium.

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