Medicare helps you afford your doctor.
Social Security provides Medicare benefits to individuals who qualify. Medicare primarily covers medical care to seniors over age 65. You must qualify for Part A or hospital care before Medicare Part B is available. Most employees pay for Part A over years of employment with work history and federal taxes, but Medicare Part B has a monthly premium cost once you enroll. Part B covers medical insurance for doctor visits, outpatient care, home health services and preventive care.
Instructions
1. Determine your status. If you are a continuing participant, your Medicare Part B payment in 2011 is $96.40. New participants pay the new rate. If your last-year's tax return shows a modified adjusted gross income of less than $85,000 as a single filer or $170,000 as married filing jointly, your cost for Medicare Part B in 2011 is $115.40.
2. Review last year's tax return. If you made between $85,000 and $107,000 modified adjusted gross income as an individual or between $170,000 and $214,000 married filing jointly, you pay $46.10 plus the $115.40 each month for Part B.
3. Calculate your Part B monthly payment if you make between $107,000 and $160,000 in modified adjusted gross income as an individual filer by adding $115.30 to the $115.40 base, for a total of $230.70. Use the same calculations if you are married filing jointly and your modified adjusted gross income is between $214,000 and $320,000.
4. Determine if you are in the next income tier. Individual tax filers with a modified adjusted gross income of $160,000 to $214,000 pay $184.50 in addition to the $115.40. Married individuals filing jointly have a modified adjusted gross income between $320,000 and $428,000 in this payment category. The total monthly Part B payment in this category is $299.90.
5. Calculate your Part B payment if your federal income taxes reflect a modified adjusted gross income above $214,000 as an individual or above $428,000 as a married couple filing jointly. Add $115.40 and $253.70 to arrive at your monthly payment for Part B in this income category.
Tags: adjusted gross, adjusted gross income, gross income, modified adjusted, modified adjusted gross
