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Why is our medicare income taxed fully, I am 66 almost 67 and my husband is 70?

 
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5 Replies

Why is our medicare income taxed fully, I am 66 almost 67 and my husband is 70?

Medicare is not income.  Medicare is a government health care program.  The premiums paid for Medicare are medical expenses that can be deducted as an itemized deduction on Schedule A.
rjs
Level 15
Level 15

Why is our medicare income taxed fully, I am 66 almost 67 and my husband is 70?

Are you referring to the Medicare wages in box 5 of your W-2 and the Medicare tax in box 6 of your W-2? There is no age limit on the Medicare tax on wages. Everyone who works pays Medicare tax at the same rate, regardless of age.

Why is our medicare income taxed fully, I am 66 almost 67 and my husband is 70?

Sorry, I meant Social Security wages.  Please explain, it looks like we are being taxed for money we receive from social security as if they were being earned now.

Why is our medicare income taxed fully, I am 66 almost 67 and my husband is 70?

There is no age limit on payment of SS taxes on earned income from wages reported on a W-2.  Box 3 for SS wages and box 4 for SS taxes withheld.
rjs
Level 15
Level 15

Why is our medicare income taxed fully, I am 66 almost 67 and my husband is 70?

Social Security wages in box 3 of your W-2 is not money that you receive from Social Security. It's part (or all) of the wages that you earn for working, and you have to pay Social Security tax on it, no matter how old you are.

The benefits that you receive from Social Security are shown on your Form SSA-1099. You do not pay Social Security tax on your Social Security benefits, but depending on how much income you have you may have to pay income tax on part of your Social Security benefits.

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