Submitted By: someone
Answered: May 30, 2018 11:38 pm

How can I know whether I’ll be subject to the Medicare surcharge next year?

Medicare beneficiaries with modified adjusted gross income (MAGI) over a set amount ($85,000 for single individuals and $170,000 for married persons filing jointly) pay an additional Part B and Part D premium. MAGI in 2017 is what is used to determine whether there’s an additional premium in 2019. MAGI for this purpose means your adjusted gross income plus tax-exempt interest income.

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Tax Glossary

Estimated tax

Advance payment of current tax liability based either on wage withholdings or installment payments of your estimated tax liability. To avoid penalties, you generally must pay to the IRS either 90% of your final tax liability, or either 100% or 110% of the prior year’s tax liability, depending on your adjusted gross income.

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