2022 Decisions Can Affect 2024 Taxes for Some!

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Expecting a big capital gains or other tax event this year? It might mean an unexpected tax surprise that can affect your Medicare premiums two years from now!

Ever hear of IRMAA? It’s the Medicare income-related monthly adjustment amount. It’s a test, devised as a means test for recipients of the federal program. Some think it’s only fair; others call it a cliff-tax for the rich. Many, if not most, people don’t even know about it.

While it kicks-in at incomes over $91.000 for singles and $182,000 for marrieds and who are in Medicare Part B or Part D (or both), these surcharges can be significant.

Many people aren’t worried feeling they won’t be affected – and, maybe they’re right. The most common trigger event is the sale of a home. In that case, it’s likely their Medicare premium will go up for one year, then drop the following year. It’s important to remember, there’s a two-year ‘look-back’.

How to mitigate this? Sell at age 63! It won’t affect IRMMA.

There are other strategies you might consider, too. Tax planning should be ongoing – now and all the way through retirement. Congress won’t stop tinkering with the tax laws just because you’re retiring.

Register for my webinar, then grab some coffee and learn what you might be able to do to keep more of your hard-earned money from going to Washington.

Enjoy!

Jim

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Jim Lorenzen, CFP®, AIF®

Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742.  IFG helps specializes in crafting wealth design strategies around life goals by using a proven planning process coupled with a cost-conscious objective and non-conflicted risk management philosophy.

Opinions expressed are those of the author.  The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Jim's picture
Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742.

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