Feedback for Turbotax improvement - show the Medicare MAGI.

[hj74edtg]

It would be highly useful for seniors if Turbotax calculated the Medicare MAGI (modified AGI). This number is used by Medicare to decide if you have to pay higher part B premiums. For those not familiar, Medicare MAGI isn't the same as the normal AGI.

[Critter]

Not sure why you need anything special to add 2 amounts together ... Your MAGI is your total adjusted gross income and tax-exempt interest income.  And since this is not anything to do with an income tax return I doubt they will add it especially since you get notification from the SS office. 

https://www.ssa.gov/pubs/EN-05-10536.pdf

[hoffyevan]

I agree.  Please show the Medicare MAGI.

[AZJAW]

Yes needed.  the Medicare MAGI is different than MAGI for other purposes.

It would extremely help to have this specifically calculated, as the $ impact is significant if the medicare income threshold is exceed by just 1 dollar.  The $ surcharge is deducted from both spouses SS payments.  Specifically the TT Estimator function needs this calculation.   My concern is how much of my investments I can cash in or convert to a ROTH without exceeding the next Medicare Threshold. 

thanks

Joe W

[Critter]

Again I highly doubt the program will ever provide this information as it has nothing to do with your income  tax return or income tax planning ... this is solely a SS/medicare  situation.  Once you know the limitations and how to get the MAGI (Your MAGI is your total adjusted gross income and tax-exempt interest income) then you can do some tax planning on your own.   https://www.ssa.gov/pubs/EN-05-10536.pdf

[tagteam]

Also, it is kind of tough to plan effectively. 

To the point, planning that is occurring now, in 2019, will not have any impact until 2021 since Medicare uses MAGI from 2 years ago (the latest provided by the IRS) and the 2021 brackets will almost certainly be different than the 2019 brackets. 

[AZJAW]

Hi,

After additional  research I find the following report that identify's what incomes are to be used for the medicare premiums MAGI.  You do add tax exempt interest income however, interestingly it  does not include the tax exempt portion of SS payments.   It identifies 5 different versions of MAGI used for medicare / medicaid purposes. 

https://www.everycrsreport.com/reports/R43861.html#_Ref393451965

Perhaps a independent function in the TT estimator would help the senior doing tax planing. 

My understanding is that the magi income brackets used for medicare premium surcharges has been fixed since 2011.  but they are to be indexed by an the inflation factor starting in 2020.  So a reasonable estimation can be made for tax planning purposes.  

Thank you

Joe in Arizona. 

[Mark H]

I 100 percent agree. I got a notice that I fell into an a 54 per month dollar Medicare increase for 2018, in spite of 15K in deductions. This made no sense to me as my 'tax exempt' income is far less that my deductions.  It would be VERY useful to see it Turbo Tax and save me a lot of time protesting, knowing the program computed the same amount.

So yes, please add MAGI...

[tagteam]

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@Mark H wrote:

...I got a notice that I fell into an a 54 per month dollar Medicare increase for 2018, in spite of 15K in deductions. This made no sense to me as my 'tax exempt' income is far less that my deductions. 

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Which tax year? Hopefully, you are aware that your increase was not based upon the income/deductions you reported for the most recent tax year (2018). Rather, the increase was based upon your MAGI from 2 years past.