@mjemigh3304 My dad did this too! He even calculated mileage to and from the pharmacy! 😀 It worked to get him to the 7.5%. I suppose writing off something is better than nothing!
I thought that if I worked for a company with more than 20 employees I had to be on the company plan and could not sign up for Medicare Part B. Is that incorrect? Thanks.
@alancravitz411 HI Alan, this is partially true... you could stay on the company plan, but you are not forbidden from enrolling in Medicare. If you are on an Employer group health plan, and that Employer (whether Your Employer or your Spouse's Employer) has 20 or more Employees, you do not need to enroll in Medicare because the group coverage is primary. However, if you CHOOSE to come off the group, enroll in Medicare A and B and buy a supplement and RX plan, that is your choose. Just know that the Employer cannot reimburse you for doing this. Nine times out of ten, the Employer plan is a better deal. Remember, you don't have to pay for Medicare B, your Employer is most likely paying some or a good chunk of your premium, AND the premium you or your wife pays is usually taken out of your paycheck PRE-tax...without having to calculate all your expenses. Hope this clarifies this.
So if my employer has 25 employees, I don't have to sign up for Medicare? What does that do when I quit working? Won't I have a penalty to pay for getting Medicare late?
@im_agine852 Hi There! Yes, that is correct: You do NOT have to sign up for Medicare provided you are enrolled in the company's group health plan. AND you will not be penalized later if you delay enrolling. If you are not enrolled in your Employer's group health plan, but are covered by a spouse or individual policy, this rule does not apply. It is ONLY if you are enrolled in the group health plan through your Employer AND they have 20 or more employees. Now, you may want to Sign up for A or not. Depending on a few things. More info here: Are you Turning 65 soon? ...what you need to know: ua-cam.com/video/Gq8PadrU5PE/v-deo.html Do I have to enroll in Medicare at age 65? ua-cam.com/video/YMP0XguyZtQ/v-deo.html Do I need Medicare Part A? ua-cam.com/video/H1wMVruSs6A/v-deo.html Hope this helps!
@user-pc2ve3sl8u Hi there! Thanks for your question... but I have a question about your question... 😁 Is the Medical Account an HSA or FSA account? Or is this a Medical Reimbursement account? An FSA is a Flexible Savings Account and can only be offered by an Employer to the employees of a company. The funds you allocate in this type of account are PRE-TAX and come out of your check before taxes are paid. If you allocate money to an H.S.A. account through your employer, you might want to look at your paycheck to see if they take it out before or after. These contributions ARE tax-deductible, but might need to be filed on your individual return. Check with your HR dept. If you have a Medical Reimbursement Account, this is typically not taxable income to you. Usually this money is to be used for deductibles and copayments. I don't know if this can be used towards Medicare or other premiums. Again, check with your HR dept. Hope this answers your question... if not, let me know more specifically what you mean or how I can better answer this.
Are the "rules" any different if I file joint income tax returns with husband? We are both retired but I'm going to take on some project work this Fall after I enroll in Medicare.
@nancygospo281 Hi Nancy! Nope...rules are the same whether you file as an individual or married. the key is: Do you itemize and have expenses over 7.5% of MAGI or Do you file a Schedule C for 1099 income... then you can probably deduct yours. Talk to your accountant. I don't know if you can also deduct for Jim. P.S. I need to talk to my accountant as well because my husband is self-employed, will continue to work after 65 and we should be able to deduct this.
@nancygospo281 New update: I spoke to one of my clients who is the owner of a CPA firm in the burbs; I asked about this deduction and he said: As long as the health deduction does not exceed your net income, you can deduct this on a 1099.... for Medicare, Med Supp and RX premiums for you AND your spouse! But as always, double check with your accountant to confirm.
My policy has always been to save every receipt for every thing and let someone else figure it out. It's worked for me for a half-century.
@mjemigh3304 My dad did this too! He even calculated mileage to and from the pharmacy! 😀 It worked to get him to the 7.5%. I suppose writing off something is better than nothing!
I thought that if I worked for a company with more than 20 employees I had to be on the company plan and could not sign up for Medicare Part B. Is that incorrect? Thanks.
@alancravitz411 HI Alan, this is partially true... you could stay on the company plan, but you are not forbidden from enrolling in Medicare.
If you are on an Employer group health plan, and that Employer (whether Your Employer or your Spouse's Employer) has 20 or more Employees, you do not need to enroll in Medicare because the group coverage is primary. However, if you CHOOSE to come off the group, enroll in Medicare A and B and buy a supplement and RX plan, that is your choose. Just know that the Employer cannot reimburse you for doing this.
Nine times out of ten, the Employer plan is a better deal. Remember, you don't have to pay for Medicare B, your Employer is most likely paying some or a good chunk of your premium, AND the premium you or your wife pays is usually taken out of your paycheck PRE-tax...without having to calculate all your expenses.
Hope this clarifies this.
So if my employer has 25 employees, I don't have to sign up for Medicare? What does that do when I quit working? Won't I have a penalty to pay for getting Medicare late?
@im_agine852 Hi There! Yes, that is correct: You do NOT have to sign up for Medicare provided you are enrolled in the company's group health plan. AND you will not be penalized later if you delay enrolling.
If you are not enrolled in your Employer's group health plan, but are covered by a spouse or individual policy, this rule does not apply. It is ONLY if you are enrolled in the group health plan through your Employer AND they have 20 or more employees.
Now, you may want to Sign up for A or not. Depending on a few things.
More info here:
Are you Turning 65 soon? ...what you need to know: ua-cam.com/video/Gq8PadrU5PE/v-deo.html
Do I have to enroll in Medicare at age 65?
ua-cam.com/video/YMP0XguyZtQ/v-deo.html
Do I need Medicare Part A?
ua-cam.com/video/H1wMVruSs6A/v-deo.html
Hope this helps!
I have a medical account set up thru my employer to pay for uncovered expenses . Is the amount I use in a year count as a deduction?
@user-pc2ve3sl8u Hi there! Thanks for your question... but I have a question about your question... 😁
Is the Medical Account an HSA or FSA account? Or is this a Medical Reimbursement account?
An FSA is a Flexible Savings Account and can only be offered by an Employer to the employees of a company. The funds you allocate in this type of account are PRE-TAX and come out of your check before taxes are paid.
If you allocate money to an H.S.A. account through your employer, you might want to look at your paycheck to see if they take it out before or after. These contributions ARE tax-deductible, but might need to be filed on your individual return. Check with your HR dept.
If you have a Medical Reimbursement Account, this is typically not taxable income to you. Usually this money is to be used for deductibles and copayments. I don't know if this can be used towards Medicare or other premiums. Again, check with your HR dept.
Hope this answers your question... if not, let me know more specifically what you mean or how I can better answer this.
Are the "rules" any different if I file joint income tax returns with husband? We are both retired but I'm going to take on some project work this Fall after I enroll in Medicare.
@nancygospo281 Hi Nancy! Nope...rules are the same whether you file as an individual or married.
the key is:
Do you itemize and have expenses over 7.5% of MAGI or
Do you file a Schedule C for 1099 income... then you can probably deduct yours. Talk to your accountant. I don't know if you can also deduct for Jim.
P.S. I need to talk to my accountant as well because my husband is self-employed, will continue to work after 65 and we should be able to deduct this.
@nancygospo281 New update: I spoke to one of my clients who is the owner of a CPA firm in the burbs; I asked about this deduction and he said:
As long as the health deduction does not exceed your net income, you can deduct this on a 1099.... for Medicare, Med Supp and RX premiums for you AND your spouse!
But as always, double check with your accountant to confirm.
Thanks Cathy! I will confirm.