topic IRMAA & MAGI in Retirement tax questions

IRMAA & MAGI

jgolden — Fri, 06 Dec 2019 16:28:24 GMT

For those over 65, could Turbotax list the MAGI for Medicare's IRMAA (Adjusted gross income + tax exempt interest income).

Re: IRMAA & MAGI

Vanessa A — Fri, 06 Dec 2019 16:58:15 GMT

Are just asking if TurboTax shows your MAGI?

Re: IRMAA & MAGI

rjs — Fri, 06 Dec 2019 17:45:06 GMT

On your 2017 tax return, the MAGI for IRMAA is Form 1040 line 37 plus line 8b.

On your 2018 tax return, the MAGI for IRMAA is Form 1040 line 7 plus line 2a.

On your 2019 tax return, the MAGI for IRMAA is Form 1040 line 8b plus line 2a.

Keep in mind that your IRMAA is based on your MAGI from two or three years ago. For example, your IRMAA for 2020 will usually be based on your 2018 tax return, or possibly your 2017 tax return.

Re: IRMAA & MAGI

Boggy4062 — Tue, 10 Dec 2019 22:25:36 GMT

The fact that the Trubotax is already keeping track of the taxpayer's age (adds additional tax deduction if you are over 65), providing MAGI for Medicare should be trivial. One not add it is simply beyond reason IMHO.

Re: IRMAA & MAGI

TomD8 — Wed, 11 Dec 2019 14:51:25 GMT

If you are receiving Social Security benefits, you will soon receive a letter from Social Security with the details on your new 2020 benefit amount. That letter will include the IRMAA information you’re seeking.

Re: IRMAA & MAGI

rjs — Tue, 10 Dec 2019 22:49:02 GMT

@Boggy4062

Are you talking about TurboTax Online or the CD/Download TurboTax software? Where would TurboTax show the MAGI for IRMAA? There's no place for it on the tax forms. When you want to see what your 2020 Medicare premiums will be, how would you find your 2018 or 2017 MAGI in TurboTax?

Is it really so hard to add two numbers from your tax return? A lot of people don't have any tax-exempt interest, so they don't even have to add anything. The MAGI is right there on the tax return.

Re: IRMAA & MAGI

mthead33 — Tue, 24 Dec 2019 19:41:59 GMT

Correct, and this works if none of your situation has changed. If you have stopped working and therefore wish to apply for a reconsideration because of a qualifying life event, my MAGI becomes important to be able to easily establish.

Re: IRMAA & MAGI

Boggy4062 — Wed, 25 Dec 2019 00:29:26 GMT

It doesn't matter which version ( I use PC version). The reason I am buying a program which is supposed to answer any tax question is not to add or subtract lines on my tax for that already exit in the program. I COULD rewrite Turbotax, or create tax forms in Excel, but is it the issues? The financial brokers can and DO, calculate RMD amount for IRAs. They have the information, and make my life easier. For some reason Intuit doesn't find it important ... for them. They don't don't care about us, the customers (it is my feeling).

Re: IRMAA & MAGI

rjs — Wed, 25 Dec 2019 01:20:11 GMT

@Boggy4062 wrote:

. . . a program which is supposed to answer any tax question

TurboTax is not supposed to "answer any tax question." It's supposed to prepare your tax return. There are many possible tax-related questions that TurboTax does not answer. That's not what it's designed for.

@Boggy4062 wrote:

The financial brokers can and DO, calculate RMD amount for IRAs. They have the information, and make my life easier.

They are required by law to calculate your RMD and tell you the amount. They don't do it to make your life easier. They do it because they have to.

Re: IRMAA & MAGI

macuser_22 — Wed, 25 Dec 2019 01:20:53 GMT

@Boggy4062 wrote:

It doesn't matter which version ( I use PC version). The reason I am buying a program which is supposed to answer any tax question is not to add or subtract lines on my tax for that already exit in the program. I COULD rewrite Turbotax, or create tax forms in Excel, but is it the issues? The financial brokers can and DO, calculate RMD amount for IRAs. They have the information, and make my life easier. For some reason Intuit doesn't find it important ... for them. They don't don't care about us, the customers (it is my feeling).

Your total 2019 RMD amount is based on the December 31, 2018 total value of all Traditional, SEP and SIMPLE IRAs that you might own. TurboTax has NO way to know what that value might have been since it is not usually required on a tax return. TurboTax is an income tax program, and does not collect data not needed to file a tax return for the current tax year. Nothing about a RMD goes on your tax return at all if you took the RMD - TurboTax does ask if you did take the RMD so that it can prepare a 5329 form if you failed to take it, otherwise there is nothing at all about a RMD on a tax return.

Re: IRMAA & MAGI

Boggy4062 — Wed, 25 Dec 2019 06:25:13 GMT

TurboTax doesn't do my taxes. I DO. I gather the number, forms.. I enter them into the Turbotax. The only thing that it does is it CALCULATES numbers that I provided. I still have to answer the questions that only I have answers to. It replaces the accountant in some area, but does require knowledge about taxes. Again, this very little to do with the original question: why TruboTax doesn't provide IRMAA and MAGI CALCULATIONS for Medicare purposes. It DOES have all the information (same as brokers do to calculate RDA for )? Is it because the government didn't make Intuit do it?

Re: IRMAA & MAGI

Mtnbyke — Thu, 05 Mar 2020 23:19:48 GMT

The issue is to decide whether to add to my MAGI, say by making a TRADITIONAL IRA to a ROTH IRA conversion. I would need to know how much I could convert before raising to the next tier, before I finalize my taxes.

Re: IRMAA & MAGI

JulieS — Sat, 07 Mar 2020 17:01:53 GMT

If you want to do some projections, you can use the estimated tax section in TurboTax Online to run some scenarios.

Log in and continue your return.
Use the search box toward the upper right to search for W4.
Click on Jump to W4.
Answer the first question No.
Answer the second question Prepare now.

Go through the section and project your 2020 income. You can go through it several times if needed.

If you are using TurboTax software installed on your computer, it is even easier.

Click on the Forms icon toward the upper right corner.
Click on Open Forms.
Search for What if, create a copy.

You can run various tax scenarios on the worksheet very easily.

Re: IRMAA & MAGI

Mtnbyke — Sat, 07 Mar 2020 20:55:05 GMT

Interesting but does not address the issue of CALCULATING MAGI for IRMAA.

Re: IRMAA & MAGI

macuser_22 — Sat, 07 Mar 2020 22:09:48 GMT

@Mtnbyke wrote:

Interesting but does not address the issue of CALCULATING MAGI for IRMAA.

TurboTax is *income tax* software and does not support calculations that do not go on an income tax return.

IRMAA is an acronym for Medicare's income-related monthly adjustment amount. Medicare does not go on an income tax return other than what is reported to you on a W-2 or SA1099 form.

Re: IRMAA & MAGI

rjs — Sun, 08 Mar 2020 01:43:53 GMT

@Mtnbyke wrote:

Interesting but does not address the issue of CALCULATING MAGI for IRMAA.

As stated above, calculating MAGI for IRMAA is simply a matter of adding two numbers on your tax return (one of which is zero for most people). See the earlier answer above.

MAGI for IRMAA

Also note that you have no way of knowing which year's MAGI the Social Security Administration will use to calculate your IRMAA, since it depends on the IRS response to their inquiry.

Re: IRMAA & MAGI

rcharlesb2 — Tue, 31 Mar 2020 20:01:49 GMT

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.

Re: IRMAA & MAGI

LeonardS — Tue, 31 Mar 2020 20:29:32 GMT

Thank you for your post.