Did you know that the annual cost of your Medicare premium(s) is determined based on your income level? Read more to learn how your income tax return can impact the cost of your Medicare coverage.
Medicare Part B covers medical visits, including services that are deemed necessary or preventive. Part B is part of Original Medicare (along with Medicare Part A).
Based on your income level, your monthly premium for Part B could vary. The standard Part B premium for 2023 is $164.90, but high-income households pay an increased premium. See the table below for more detail.
Keep in mind that even if you and your spouse file a joint tax return, you will each pay an individual Part B monthly premium because all Medicare coverage applies individually.
Medicare Part D covers prescription drugs and is separate from Original Medicare.
If you have Medicare prescription drug coverage (whether a standalone prescription drug plan or coverage included as part of a Medicare Advantage plan) and are in a high-income tax bracket, you may owe a premium for Medicare Part D in addition to your drug plan premium.
Refer to the table below for more detail about monthly premiums for prescription drug coverage.
If you are required to pay a higher premium due to income, Social Security will send you a letter informing you of the adjusted premium amount(s).
If you are in a high-income bracket and have a significant decrease in your income, call Social Security at 800.772.1213. They will need to know about your income change and determine if an adjustment to your premium cost(s) is necessary.
Your income may have changed due to a variety of reasons, including:
Social Security will ask to see documentation confirming the event and change in your income.
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