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I am about to turn 65 and go on Medicare, and my income is $120,000. I know that people with higher incomes are required to pay higher premiums for Medicare Part B and Part D. How will these higher premiums affect me?
Medicare beneficiaries with incomes above $88,000 for individuals and $176,000 for married couples are required to pay higher premiums. The amount you pay depends on your modified adjusted gross income from your most recent federal tax return. To determine your 2021 income-related premium, Social Security will use information from your tax return filed in 2020 for tax year 2019. If your income has gone down since you filed your tax return, you should contact Social Security and provide documentation regarding this change. At your current income level, in 2021, you would pay just over $4,300 in annual Medicare premiums combined for Part B ($3,564) and Part D (around $778, on average).