Pay an Adjusted Premium if You Have High Income
If your income is above a certain level, you will have to pay the income-related monthly adjustment amount.
To determine if you have to pay this additional premium, Medicare looks at your modified adjusted gross income from 2 years ago that was reported on your IRS tax return. Modified adjusted gross income (MAGI) is your adjusted gross income plus tax-exempt interest income.
You will be charged the income-related monthly adjustment amount in 2012 if your modified adjusted gross income on your tax return filed in 2011 for the 2010 tax year was
- more than $85,000 and you are single
- more than $85,000 and you are married, but file separately
- more than $170,000 and you are married filing jointly with your spouse.
You will get a letter from Social Security letting you know if you have to pay this extra amount. Each month, the amount will be deducted automatically from your Social Security or Railroad Retirement Board check or Medicare will send you a bill. Do not pay this extra amount to the NRECA Part D Plan.