Page 7 - NBY News January 2019

Pay Estimated TAXES Medicare SAVINGS

The IRS is warning retirees to get an well as withdrawals If You Can’t Medicare Part A and B premiums.
idea of how much income tax you may from retirement Afford Your
owe for 2018, and determine whether accounts. Medicare Part B For those who qualify, this
you need to make an estimated According to The Costs, Apply for a
payment by January 15 , 2019. Recent Senior Citizen’s Medicare Savings program will cover most out-of-
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changes to the tax law lowered League’s (TSCL) Program
individual rates and tax brackets Senior Surveys, pocket costs for Medicare-covered
slightly. The standard deduction more than half of The Medicare services from Medicare providers,
almost doubled from $6,350 to $12,000, retiree households Part B premium for
and single taxpayers older than 65 can pay taxes on Social doctors and or providers in your Medicare
deduct an additional $1,600 ($2,600 for Security benefits. hospital outpatient
married taxpayers who file jointly). The new tax law did care is one of the Advantage plan’s network.
On the other hand, personal not change the most ·
exemptions have been eliminated. Tax income thresholds misunderstood Specified Low-income Medicare
advisors say that on average, most that subject Social expenses that Beneficiary (SLMB): Pays for
retirees will likely see a decrease in the Security benefits to retirees have.
taxes they owe, but individual taxation. Taxpayers with incomes in excess Every month, the Medicare Part B premium.
circumstances vary greatly. of $25,000 (single) or $32,000 (joint) pay taxes Social Security Administration
Retirees need to pay attention automatically deducts the Part B · Qualifying Individual (QI)
to income from tax-deferred premium from the benefits of retirees. Program: Pays for Medicare Part B
retirement accounts, pensions, The premium of people with incomes
annuities and Social Security below $85,000 (individual) and $170,000 premium. You must apply every
benefits, in addition to other (couple) will be $135.50 per month in
streams of income from any jobs, 2019. New retirees are frequently year for this program, and
rental property, or income from a surprised to see how much that deduction
business. Failing to pay the right takes from their Social Security benefits. applications are granted on a first-
amount throughout the year Frequently the deduction is responsible come, first served basis.
could subject you to a tax penalty for keeping Social Security benefits flat,
To qualify, the programs have income
next April when your federal and failing to keep up with other costs and asset limits, and states use different
return is filed. due to weak growth in COLAs. From rules to count your income and assets to
This late into 2018, one way to 2000 through 2018, Medicare Part B determine if you are eligible. Monthly
prevent a penalty is to pay an premiums have increased, on average, an income limits typically are as high as
estimated, or additional payment that on as much as 50% of Social Security astonishing 11% per year. $1,234 (individual) and $1,666 (married
brings your estimated tax payments to benefits. For taxpayers with income In couples). Asset limits are $7,560
at least 100 percent of your prior year exceeding $34,000 (single) and $44,000 recent (individual) and $11,340 (married couples).
(joint), up to 85% of Social months, Certain resources are never counted as
Security benefits may be taxed. I’ve assets. These include your primary house,
Rather than paying quarterly heard one car, household goods and wedding/
estimates, taxpayers may use from a engagement rings, burial spaces and burial
Form W-4V to withhold a flat few funds up to $1,500 per person, and life
rate from Social Security checks: retirees insurance with a cash value of less than
7%, 10%, 12%, or 22%. who haven’t enrolled in Medicare Part B $1,500. Some states may exclude other
You may want to try the IRS’ at all, saying they can’t afford the cost. assets as well.
online withholding calculator Every state, however, has programs that Going without any Medicare Part B
at https://www.irs.gov/ can help to pay Medicare premiums. In coverage is not a good option. Ignoring
individuals/irs-withholding- some cases, the programs may also pay regular medical care can worsen chronic
calculator. Keep in mind that none of Medicare Part B deductibles, coinsurance, health conditions more quickly. Just one
the info in this article is tax advice. If and co-payments for individuals who overnight stay in the hospital could lead to
you have questions consult a meet certain qualifications. bankrupting bills. For more information
tax liability, or 110 percent of the prior professional tax advisor. about Medicare Savings Programs, find
year liability, if you believe you will If you have trouble affording the Part B contacts and information: https://
have higher income in 2018. If you premium, you should apply. The specific www.medicare.gov/contacts/
think you may have underpaid during names of these “Medicare Savings Contact your State Medicare
the year, there’s still time to make an Programs,” and how they work, vary Program, https://www.medicare.gov/
estimated payment by January 15 , from state to state. There are three main contacts/#resources/msps to learn if you
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2019 to stop penalties from accruing. programs: qualify and to apply.
To prevent the same problem next
year, consider adjusting withholding · Qualified Medicare Beneficiary Source: “Medicare Savings Program
taxes from pension or annuities, as Basics,” MedicareInteractive.org, Medicare
(QMB): This program pays for
Rights Center, accessed on 10/08/18.

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