What Is Included In Modified Adjusted Gross Income For Medicare?

What is modified adjusted gross income for Medicare?

Medicare premiums are based on your modified adjusted gross income, or MAGI.

That’s your total adjusted gross income plus tax-exempt interest, as gleaned from the most recent tax data Social Security has from the IRS..

What is included in MAGI for Medicare premiums?

Your MAGI is your total adjusted gross income and tax-exempt interest income. If you file your taxes as “married, filing jointly” and your MAGI is greater than $174,000, you’ll pay higher premiums for your Part B and Medicare prescription drug coverage.

What is included in modified adjusted gross income?

According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable: Student loan interest. One-half of self-employment tax. Qualified tuition expenses. Tuition and fees deduction.

Is Social Security included in adjusted gross income?

MAGI is adjusted gross income (AGI), determined in the same way as for personal income taxes, plus three types of income that AGI omits: excluded foreign income, tax-exempt interest, and the non-taxable portion of Social Security benefits. … (Social Security benefits don’t count toward these thresholds.)

What income is used to determine modified adjusted gross income or MAGI )?

MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. For many people, MAGI is identical or very close to adjusted gross income. MAGI doesn’t include Supplemental Security Income (SSI).

How do I reduce my modified adjusted gross income?

There are a number of ways to reduce your modified adjusted gross income to help you qualify to make Roth contributions:Make pretax contributions to a 401(k), 403(b), 457 or Thrift Savings Plan. … Contribute to a health savings account. … Contribute to a health care flexible-spending account.