For 2025 I want to ensure I get close to (but NOT OVER) the $212 MAGI number so my Medicare premiums don't rise. How reliable is TT's 2025 estimation worksheet for this?

[organdan]

I will be itemizing deductions, and can increase charitable contributions by Dec 2025 to lower the MAGI. Has TT 2024 been fully updated to account for OBBB changes?

[VolvoGirl]

The 2024 program probably won't be updated with the 2025 changes. There are some workarounds you can use.

Like if you itemize deductions the SALT (State And Local Tax) max was 10,000 and now is 40,000. So you could enter the amount over 10,000 (up to 40) in another place like in Charity.

If you are 65 or older and qualify for the senior deduction you could reduce some taxable income by 6,000 (12,000 married).

[SteamTrain · Accepted solution]

@organdan 

Hold on though.  MAGI for Medicare IRMAA purposes, is AGI Plus Tax exempt $$... (on the 2024 tax form 1040, That's line 11 plus line  2a).

That's before itemized deductions are considered...so increasing charity won't help you.

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If your  MAGI income is anywhere near that particular 212,000 threshold, not sure what you can do other than find some capital losses to realize on investments to "attempt" keep your MAGI below. 

$212,000 was one of the MFJ MAGI cut-off points for 2024 taxes that affect your 2026 Medicare premiums.....next year might be a bit higher, but it's almost impossible to plan it that closely.

[organdan]

Thanks VG. I was looking for a way to ask TurboTax people directly by email, but I can't find anything about how to do that. I see how they're incentivizing non-employees to do their work for them.

At this point I would ask them 'have you decided NOT to update the 2024 program for 2025 estimation?'

[organdan]

ugh. Thanks though.

I had asked an AI about this last month, it must have hallucinated.

Today an AI gave me answer that matched yours!

[organdan]

SteamTrain is right. I had misread some info, leaving me with the impression that deductions could bring down that Medicare income number. Thanks!

[VolvoGirl]

About the idea of using investment losses.   You can only use 3,000 net loss  each year.   The rest you have to carryover to the next year.   Unless you have more gains you can offset first.   

[SteamTrain]

True...need to watch how those losses are handled if you choose to attempt reducing income that way

As an example:

Say the only Cap Gains you have  for the year are the result of Mutual Fund Cap Gains distributed each year at year end and reported in box 2a of a 1099-DIV form. Those $$ add to your AGI...but then, any 1099-B losses resulting from the actual sales of securities you might own....those losses (in this situation) will be used to offset the 1099-DIV box 2a $$ first.  Then if the losses are greater than that, then up to $3000 more can be used to offset your other ordinary income (pensions, taxable Interest, ordinary dividends, etc)

[Mike9241]

I don't think you're going to see much implementation of the 25 new tax laws in the 24 program - what if section for 25, other than known changes like the old standard deduction. most of the change affect tax credits and itemized deductions /standard deduction which have no effect on MGI. the items affecting magi the the tip deduction - will that affect MAGI or just taxable income. the same with overtime . there will be a charitable deduction for non-itemizers and bonus depreciation will be 100% subject to certain restrictions Before these changes can be implemented for Turbotax 2025, IRS has to write the regulations of how these changes are to be implemented/work.