The sale of property makes one's Medicare premium go up?

[PAR35]

I pay a chunk of my paycheck for a medicare premium. Then they deduct another premium from my Social Security. SS has been double dipping from me since I turned 65. I’ll likely have to quit working when I turn 73 because I won’t be able to afford the taxes.

[tired&retired]

They are now the amounts I showed. I think it’s $689 for B and $91 for D.

My client pays the max as their gain was in the millions.

[Gen.Blather]

“Yep, welcome to “means testing”!”

The thing is the government lied. It sold Social Security as a savings account. Any semblance of it being a separate account vanished when LBJ he took the fund into the Unified Budget. The stuff that was part of SS like the Medicare plan came along with the sales pitch that most of it would be paid for from our “retirement savings” account.

They would have been better off if they’d simply explained that the young people were paying for the old people out of their current taxes. Then it would be easier to sell means testing. But as it is now, everyone who paid into SS were told it was their savings account and not the taxes being paid right this minute by young people who are having their own problems making ends meet.

Oh, and there are WAY fewer young people projected to be born to pay taxes from now and into the foreseeable future. That was one reason they gave in the seventies for bringing in foreigners. It’s just that they brought in foreigners who will probably never pay into the system to match what it costs to have them. The government is just one lie after another.

[fella]

One of the great promises of the USA was equality before the law. Our political/lawyer class killed that long ago.

[reasonisfaith]

DOGE, can we have a look at CMS?

[Georgia Girl 2]

They did it to Mr.GG2’s sister and BIL a couple of years ago. They were screaming like stuck pigs about it.

[DFG]

Medicare Part B premium is based on filing status and Modified Adjusted Gross Income (MAGI). MAGI is the Adjusted Gross Income (AGI) + non-taxable social security + tax exempt interest.

The capital gain will could cause the Medicare Part B premium to increase. It will also cause the taxable Social Security to increase if you are receiving Social Security benefits. The capital gain will be taxed at the capital gain tax rate instead of ordinary rate if held for more than 1 year.

See the 2026 Medicare Part B premium chart in this link:

https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles

The Ordinary and Capital Gain tax brackets are based on taxable income and not MAGI.

See the 2026 Capital Gain tax brackets in this link:

https://www.fidelity.com/learning-center/smart-money/capital-gains-tax-rates

[sphinx]

Just BigGov reminding you it’s a welfare system and you are the chump paying for it.

For your next trick, try converting some money from a regular IRA to a Roth.

You get the idea. If you find some loose change under the couch cushions, don’t report it.

[Az Joe]

Dumb Bush signed it into law in 2003

President George W. Bush signed the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) into law on December 8, 2003, which created IRMAA (Income-Related Monthly Adjustment Amount) for higher-income beneficiaries, although it didn’t take effect until 2007. This landmark legislation added prescription drug coverage (Part D) and introduced income-based adjustments for Medicare Part B premiums, reducing government subsidies for wealthier enrollees.

IRMMA stands for Income-Related Monthly Adjustment Amount, a surcharge higher-income Medicare beneficiaries pay for Parts B (medical) and D (prescription drug) premiums, based on their income from two years prior (e.g., 2023 income for 2025 premiums), calculated by the Social Security Administration (SSA) using Modified Adjusted Gross Income (MAGI) to ensure richer enrollees contribute more. It’s an income-tested adjustment, not a penalty, applied on a sliding scale, affecting beneficiaries whose MAGI exceeds certain thresholds, with the SSA sending notices and collecting it via deductions from Social Security or direct billing.

Key Aspects of IRMMA:

Applies To: Medicare Part B and Part D.
Based On: Your Modified Adjusted Gross Income (MAGI) from your tax return two years prior (e.g., 2023 MAGI for 2025 premiums).

Income Thresholds: Higher MAGI leads to higher IRMMA surcharges.

Administration: The Social Security Administration (SSA) determines who pays and sends notices.

Collection: Deducted from Social Security checks or billed directly.

Why It Matters:

Increased Costs: Can significantly raise monthly Medicare costs for higher earners.

Planning: Understanding IRMMA helps retirees plan for potential higher premium costs in retirement.
Roth IRAs: Distributions from Roth IRAs do not count towards IRMMA, making them a useful tool for avoiding these surcharges.

In essence, if your income was high two years ago, you’ll likely pay more for Medicare Part B and D in the current year.

[Az Joe]

IRMAA

In the House vote on final passage (Nov 22, 2003), 220 total voted “aye.”

Most of those ayes were Republicans: by historic reporting, virtually all but 19 Republicans supported the bill.

42 Republican senators voted “aye” on the final passage.

[The Truth Will Make You Free]

On a similar vein about Medicare: My mother passed away earlier this year, so next year year my dad will have file as a single. Without remediation his Medicare would go up to 527.70.

By disclaiming my mom’s IRAs so that they pass to us children (thereby removing her RMDs), and reducing interest income by funding 529 accounts for the great-grandchildren his Medicare will drop a bit to 405.80, and tax savings will be about $20k this year and next combined.

[Presbyterian Reporter]

Medicare deductions from your Social Security are based on your Modified Adjusted Gross Income (MAGI).

I believe MAGI includes capital gains.

I know it includes Muni Bond Interest.

[VTenigma]

So let me see if I have this right. Because of Covid and the Biden inflation making property values increase by 35 to 100% they can now tax you capital gains and raise your medicare premiums while your state and locals are taxing you into oblivion. That about sum it up? You will own nothing and be happy.

[Recompennation]

Another penalty for being successful
Every smack in the face government tax fee or giveaway to somebody else seems to have a redistribution scheme alone as basis.
The CDBG goes to communities ( exactly communities) under the auspices of development block grants and picks low (to moderate( good luck)) properties to fix up based on need.
So if you kept up your property you get nothing all else being equal but if you sat on the porch drinking for years while the house fell down then you get the governments free fix up rebuild full of all kinds of federal contracting requirements that are yet another self perpetuated added freebee gifting discrimination tool scheme.
The entire fed is a pyramid of bureaucratic promulgation grown plum out of control.
The thing needs to be clipped financially, defund the fed. 38 trillion$ in debt, damn.
Rant on.

[Thank You Rush]

“”You will have to pay tax on the RMD””

That’s for IRAs not Medicare....

[LouAvul]

Your bil and sis sold income producing/rental property? Or a primary residence?

[JimRed]

If you have more money, you should not need as much government assistance. Isn’t that what being a conservative is all about?

So is being able to shop for a better price, for thrift's sake.

[CaptainPhilFan]

Hi Lou - this site has a ton of good information regarding everything Medicare. There is no charge for anything they can help you with.

https://medicareschool.com/

[6ppc]

Capital gains. If you have a big year of capital gains it. Causes your taxable income to go up. That increases your Medicare premium.

[volare737]

“Means testing” is the fancy, politically correct term (which democrats like Mandami, Sanders, AOC, etc. just love) for wealth confiscation/wealth redistribution,,,,aka “Socialism Light”.