IF YOU ARE 65+ OR WILL BE IN 2017, PLEASE READ THIS:
Review your 2015 tax returns that you filed in 2016. In a nutshell, your Medicare premium will increase if your Modified Adjusted Gross Income (top of second page of your federal tax form 1040) is greater than:
- $85,000 filing Single
- $170,000 filing Married and Jointly
The income is based on your latest tax return. For example, your 2014 tax return filed in 2015 is the basis for the Medicare premiums you paid in 2016.
https://drive.google.com/file/d/0B04bt7j7WRnGSkNfYkVZSHVmSEk/viewusp=sharing
https://drive.google.com/file/d/0B04bt7j7WRnGbk45UEZtN2ZIOUE/view?usp=sharing
There are several Medicare premium brackets and they are cliff brackets, which means that if you go over the limit by just $1 you are going to pay a higher premium. Further, these brackets are not adjusted for inflation.
Be aware that if you have a big capital gain to declare on a tax return, like the sale of investment real estate property, or a large investment gains, you could very likely be bumped into the Modified Adjusted Gross Income threshold shown above.
Don't get caught off guard. Plan early.