I'll be retiring at the end of 2024. For the past few years, my income (mostly salary) has been above the limit that would push me into needing to pay IRMA for Medicare based on tax returns from 2023. I was vaguely aware of that but I also was vaguely aware that I could file a form that my income had changed due to a life event. So I had been assuming that in 2025, when my income will be just what I pull out of my 401K, I could file that form and wouldn't have to pay the IRMA after all.
So today I took an actual look at the form (SSA-44) and I'm a little confused how to fill it out. In section 2, you fill in the tax year in which your income was reduced. So for me that will be 2025. How then do I know what my actual AGI (and adjustments for MAGI) will be? I can estimate it, of course, but the form specifically refers to lines from the 1040 to get those values from.
Or do I use 2024 actual values for step 2, since in step 3 you enter the estimated income? Which would make sense if the instructions for section 2 hadn't specifically said to use the year in which the income was reduced.
Or does it mean that technically I need to retire in 2024, so that is the year my income is reduced (by a few days....)?
Or does none of this apply, and I'll have to pay two years of IRMA after all?
So today I took an actual look at the form (SSA-44) and I'm a little confused how to fill it out. In section 2, you fill in the tax year in which your income was reduced. So for me that will be 2025. How then do I know what my actual AGI (and adjustments for MAGI) will be? I can estimate it, of course, but the form specifically refers to lines from the 1040 to get those values from.
Or do I use 2024 actual values for step 2, since in step 3 you enter the estimated income? Which would make sense if the instructions for section 2 hadn't specifically said to use the year in which the income was reduced.
Or does it mean that technically I need to retire in 2024, so that is the year my income is reduced (by a few days....)?
Or does none of this apply, and I'll have to pay two years of IRMA after all?
Statistics: Posted by klflote — Tue Jul 30, 2024 7:16 pm — Replies 0 — Views 109