One Time Capital Gains

I sold a rental property and had a capital gains that placed me in a higher tax bracket for one year only. My Medicare premiums will go up due to this. Will this increase in my monthly Medicare premium be only for one year? If so, how do I get the premium reduced after one year?

1120

Level 15

Jul 7, 2019 4:12:27 PM

Your premium will only increase for one year (assuming this was just a one-time event), but it will not be this year if your gain was last year or in 2019. CMS looks at your modified adjusted gross income as reported on your IRS tax return from 2 years ago.

See https://www.medicare.gov/your-medicare-costs/part-b-costs

Level 1

Jul 7, 2019 5:00:14 PM

Thank you for responding so quickly. I capital gain was reported for tax year 2018, so I assume I will be assessed the increase for calendar year 2020. After calendar year 2020 is over, how do I get this amount reduced? I checked the form SSA-44 and the items do no apply. I would appreciate your advice.

Thanks!!

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One Time Capital Gains