How do Medicare/IRMAA deductions factor into calculating the taxable portion of social security?

[alexcr]

Let's say that 85% of your benefits are taxable. Is that 85% applied to the full social security amount, or is it applied to the amount after Medicare/IRMAA deductions? In other words, is it #1 or #2...?

#1: Taxable portion of social security = 85% * Social security benefits

#2: Taxable portion of social security = 85% * (Social security benefits - Medicare/IRMAA deductions)

Thanks in advance!

[neilpilot]

full SS amount, before any deductions

[pshonore]

#1 - Taxation of SS benefits is unrelated to what you pay for Medicare

[GerryL]

Your use of the word "deductions" here is confusing. Are you trying to understand how MAGI is calculated for determining whether you are subject to higher Medicare premiums (IRMAA)?

[alexcr]

Your use of the word "deductions" here is confusing. Are you trying to understand how MAGI is calculated for determining whether you are subject to higher Medicare premiums (IRMAA)?

Sorry. By deductions, I'm referring to how your social security statement shows you...

Monthly benefit amount before deductions
- Monthly deduction for the standard Medicare Part B premium
- Monthly deduction for the standard Medicare Part B IRMAA
- Monthly deduction for the standard Medicare Part D IRMAA
= Monthly benefit amount after deductions (the amount actually deposited into your bank account each month)

What I'm asking is that if 85% of your social security benefits are taxable, is it specifically 85% of your monthly benefit amount before deductions, or 85% of your monthly benefit amount after deductions?

[jhawktx]

Your use of the word "deductions" here is confusing. Are you trying to understand how MAGI is calculated for determining whether you are subject to higher Medicare premiums (IRMAA)?

Sorry. By deductions, I'm referring to how your social security statement shows you...

Monthly benefit amount before deductions
- Monthly deduction for the standard Medicare Part B premium
- Monthly deduction for the standard Medicare Part B IRMAA
- Monthly deduction for the standard Medicare Part D IRMAA
= Monthly benefit amount after deductions (the amount actually deposited into your bank account each month)

What I'm asking is that if 85% of your social security benefits are taxable, is it specifically 85% of your monthly benefit amount before deductions, or 85% of your monthly benefit amount after deductions?

That question has been answered.

[trueblueky]

Your use of the word "deductions" here is confusing. Are you trying to understand how MAGI is calculated for determining whether you are subject to higher Medicare premiums (IRMAA)?

Sorry. By deductions, I'm referring to how your social security statement shows you...

Monthly benefit amount before deductions
- Monthly deduction for the standard Medicare Part B premium
- Monthly deduction for the standard Medicare Part B IRMAA
- Monthly deduction for the standard Medicare Part D IRMAA
= Monthly benefit amount after deductions (the amount actually deposited into your bank account each month)

What I'm asking is that if 85% of your social security benefits are taxable, is it specifically 85% of your monthly benefit amount before deductions, or 85% of your monthly benefit amount after deductions?

85% of the gross before anything is subtracted

[alexcr]

That question has been answered.

GerryL asked for clarification on the question, which I was providing.