Social Security

[MargaretMort]

Just curious. Have any of you had a client who had more than the normal Medicare Part B premiums deducted from benefits?

I have one which shows $2312.40 deducted. I told her to add up the amount she received each month during 2009 to see what that total is and then to talk to our local SS office. This also shows a large increase in the total SS she received over 2008. Think there is something sadly amiss, makes a difference in her total income and taxes owed.

MM

[Gail in Virginia]

If income rises above a certain level, even if it is a once in a lifetime occurence such as the sale of real estate, medicare premiums can rise above the normal amount. Did this client have a large income in 2008?

[MargaretMort]

Yup! She is my next door neighbor so I walked over to see what I could find out. She received a statement from SS that her medicare premiums were being raised in 2009 because her 2008 income was above the norm for a Single filer. And, yes, she had a once in a lifetime money event in 2008. 2010 is back to normal. Learn something new every day, thank goodness.

Thanks for the input. MM

[TAXBILLY]

She can appeal for succeeding years if that was a one-shot deal.

taxbilly