Increased Medicare Part B and D premiums

Medicare Part B and D premiums are also determined by simply using modified adjusted gross income from the federal income tax return that was filed two years before the current year. Assuming you are willing to enroll in Medicare at 65 years old, you might want to project and track your MAGI every single year, starting at 63 years old.

Monthly premiums start at $148.50. An Income Related Monthly Adjustment Amount (IRMAA) might be added to this amount, as long as your income is higher than $88,000 for single taxpayers and $176,000 for joint tax filers.

Also, monthly premiums could be as high as $504.90 for those who are at the top income threshold, which results in an increased annual Medicare premium of $4,276.80 per person and $8,553.60 per couple.

It’s worth mentioning that Medicare Part B and Part D monthly premiums could increase a lot in a certain year, as long as a large amount of income was provided two years before that particular year.