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

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Topic Author
alexcr
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Joined: Wed Jun 21, 2017 5:50 pm

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

Post by 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
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Location: Memphis area

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

Post by neilpilot »

full SS amount, before any deductions
pshonore
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Re: How do Medicare/IRMAA deductions factor into calculating the taxable portion of social security?

Post by pshonore »

#1 - Taxation of SS benefits is unrelated to what you pay for Medicare
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GerryL
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Re: How do Medicare/IRMAA deductions factor into calculating the taxable portion of social security?

Post by 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)?
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alexcr
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Re: How do Medicare/IRMAA deductions factor into calculating the taxable portion of social security?

Post by alexcr »

GerryL wrote: Tue Dec 29, 2020 6:14 pm 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
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Re: How do Medicare/IRMAA deductions factor into calculating the taxable portion of social security?

Post by jhawktx »

alexcr wrote: Tue Dec 29, 2020 6:58 pm
GerryL wrote: Tue Dec 29, 2020 6:14 pm 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
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Re: How do Medicare/IRMAA deductions factor into calculating the taxable portion of social security?

Post by trueblueky »

alexcr wrote: Tue Dec 29, 2020 6:58 pm
GerryL wrote: Tue Dec 29, 2020 6:14 pm 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
Topic Author
alexcr
Posts: 121
Joined: Wed Jun 21, 2017 5:50 pm

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

Post by alexcr »

jhawktx wrote: Tue Dec 29, 2020 7:14 pm That question has been answered.
GerryL asked for clarification on the question, which I was providing.
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