Ashton, Author at SOS Floor Care

Do You Pay Taxes On Social

Ashton

July 05, 2024 0 Comments

For many in retirement there is a shock when they find out that they do have to pay taxes on Social Security benefits and unfortunately this is nothing new.

Taxing Social Security benefits began back in 1983 when Congress altered the Amendments of the Social Security Act to have a portion of benefits subject to federal income taxation.

The rational was simple: to keep the Social Security program solvent there had to be a change, so why not tax the rich.

At the time this novel concept was only going to be an issue for less than 5% of all retirees, but with all “good intentions” set by Congress today there over 40% of retirees that are paying some tax on their benefits.

The good news about being subject to taxes on your benefits is that, right now, only up to 85% of your Social Security benefit can be taxable.

We are stressing right now, because there is always Congress and Congress is looking for money.

According to Social Security.gov to help save the Social Security program there are proposals to increase the taxation of benefits even higher than what they are already at.

How to figure out if I will pay taxes on Social Security benefits?

There are a few factors that determine if you will have to pay taxes on your Social Security benefit and they are:

Factor #1) Your other taxable income:

Believe it or not if you happen to have more income than a certain amount you will have to pay taxes on your Social Security benefit.

If you have very little reportable income, other than your Social Security benefit there is a great chance that this tax will never affect you.

Again, it is all about reportable income and what the IRS considers to be reportable is:

½ of your annual Social Security benefit,
Your adjusted gross income (AGI) and
Tax-exempt interest you have as income.

What does AGI include as income?

AGI is everything on line 11 of the 2022 IRS form 1040 which includes income from sources like:

Wages, Capital Gains, Rental and Pension Income, Interest and Distributions from investments like Traditional 401(k)’s/IRA’s/403(b)’s.

For a comprehensive list of what counts as income click here.

Basically, if your reportable income in retirement is not from Roth Accounts, Health Savings Accounts (HSA’s), 401(h) plans, Non-Qualified Annuities, Life insurance or Home loans then it will count towards your AGI.

Pro tip: If you have any assets in a Traditional 401(k) or investments vehicles where you delay paying taxes until retirement you will most likely be paying taxes on your Social Security benefit.

What does Tax-Exempt Interest include as income?

According to the IRS is includes “any tax-exempt original issue discount (OID)), such as from municipal bonds.”

You can find this type of income on line 2a of the 2022 IRS tax form 1040.

A good rule to follow when it comes to paying taxes on your Social Security benefit:

If you are trying to avoid taxes while you are young, working and can afford to do so you will most likely pay more taxes later in retirement, when you are old, not working and need the money.

Factor #2: How you file your taxes with the IRS:

There is mathematical equation to determine if you are even eligible to be subject to taxes on your Social Security benefit and it all comes down if you file your taxes as an Individual of Jointly.

Ashton

July 03, 2024 0 Comments

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Ashton

July 03, 2024 0 Comments

When it comes to event catering in Yorkshire, Bear Street Food stands out as the go-to choice for those seeking a unique and memorable culinary experience. As a leading mobile catering service, Bear Street Food brings a fresh and exciting approach to event dining, combining delicious food with the convenience of a fully equipped mobile kitchen.

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Ashton

July 01, 2024 0 Comments

IRMAA is now impacting more than 7 million retirees this year and for many they have questions. This report will answer all the questions relating to “How do you calculate IRMAA Surcharges?”

What is IRMAA?

IRMAA, short for Medicare’s income Monthly Adjustment Amount, is a surcharge on top of a Medicare beneficiary’s Part B and Part D premiums if they are earning too much income during the year.

Simply put, IRMAA is a tax on income through Medicare and compounding the impact of this tax is that IRMAA also reduces your social Security benefit.

You pay this tax of IRMAA automatically through your Social Security benefit too.

So, the more money you generate in retirement the higher your Medicare premiums will be and the less Social Security benefits you will receive.

Think of IRMAA as being a huge revenue generator for Congress that also helps alleviate the burden of what Social Security must pay out in benefits.

Social Security is not going broke…not even close.

How do you calculate IRMAA Surcharges?

There are 2 different sets of IRMAA surcharges as this tax will affect both your Medicare Part B AND Part D premiums.

To calculate IRMAA Surcharges – Part B

You must first realize that no one person ever pays full price or the “true cost” of Medicare Part B as the federal government provides a subsidy for all retirees.

The “true cost” of Medicare Part B is the current year’s monthly Part B premium multiplied by 4.

In 2024 the “true cost” of Medicare Part B is $698.80 a month (4 X $174.70).

According to Social Security.gov IRMAA is a Medicare subsidy reduction as those who reach it receive a lower subsidy for Part B premiums.

The subsidy per IRMAA Thresholds is as follows:

IRMAA	Government Subsidy of Part B	Retiree Portion of Part B
No IRMAA	75%	25%
1st Threshold	65%	35%
2nd Threshold	50%	50%
3rd Threshold	35%	65%
4th Threshold	20%	80%
5th Threshold	15%	85%

Knowing the “true cost” of Medicare Part B and the amount of subsidy each person will receive when in IRMAA the monthly surcharge can easily be found.

In 2024 the IRMAA Part B surcharges per Threshold are as follows:

IRMAA	Retiree Portion of Part B	True Cost of Medicare Part B	Part B and IRMAA Costs
No IRMAA	25%	$698.80	$174.70
1st Threshold	35%	$698.80	$244.60
2nd Threshold	50%	$698.80	$349.40
3rd Threshold	65%	$698.80	$454.20
4th Threshold	80%	$698.80	$559.00
5th Threshold	85%	$698.80	$594.00

Calculating IRMAA Part B in the future:

IRMAA Part B surcharges move with in conjunction with the Medicare Part B premium. If the Part B premium increases the IRMAA Part B surcharge will inflate at the same rate.

Over the next 8 years the Trustees of Medicare are projecting that the Part B premium will inflate by over 6.30%.

By 2032 this premium, according to the projections, may be $285.60 a month making the surcharges equate to:

Ashton

July 01, 2024 0 Comments

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Ashton

June 30, 2024 0 Comments

Ever felt like you’re stuck in a maze, chasing the elusive cheese of an irmaa refund? Like Alice down the rabbit hole, everything seems confusing and upside-down. Medicare premiums are no Wonderland – especially when you’ve paid more than your fair share.

You may have heard whispers about getting some money back if you’ve overpaid on IRMAA (Income-Related Monthly Adjustment Amount). But how? The rules seem as tangled as Rapunzel’s hair!

In this post, we’ll cut through those knots together. We’ll navigate reimbursement processes, explore ways to lower your IRMAA based on life-changing events, and guide retirees on receiving their automatic reimbursements from health benefits programs.

We’re turning confusion into clarity; lost into found. Are you ready to find that cheese at last?

Understanding IRMAA and Its Reimbursement Process

The Income-Related Monthly Adjustment Amount (IRMAA) is a high-income surcharge that’s applied to the Medicare Part B premiums of high-income individuals. If you’ve been paying more than the standard amount for your premiums, you might be eligible for an IRMAA refund.

Let’s dive into how this process works. If you’re a retiree or have dependents who are qualified for Medicare, then you can be pleased. You get reimbursed annually for the standard Medicare Part B amount – penalties and late enrollment fees not included.

In 2023, this amounted to $170.10 per month or $2041.20 over the year – talk about savings.

How to Apply for an IRMAA Refund

To Start with applying for your IRMAA refund requires some preparation but can save you money in return. Those retirees who paid above the standard premium can submit their application form.

This means filling out detailed paperwork which will allow reimbursement claims from those pesky additional costs associated with higher incomes on medicare plans such as drug coverage charges among others.

Important Stats
Total Standard Premium Cost Yearly	$2041.20
Date when Reimbursements were Issued	April 2023
Expected IRMAA Reimbursement Date for 2023	3rd week of October 2023

Hang in there, patience pays off. Just to let you know, your reimbursement is expected to hit your account by the third week of October 202.

Got a hefty Medicare Part B premium? You might be due an IRMAA refund. In 2023, standard reimbursements hit $2041.20 yearly – now that’s some real savings. Keep your eyes peeled for the payout in October 2023. #Click to Tweet

Lowering Your IRMAA Based on Life-Changing Events

You may be eligible for a lower IRMAA if you have experienced significant life changes, such as marriage, divorce or loss of income. That’s right. You may be able to use these events to qualify for a lower IRMAA.

A sudden decrease in income could significantly affect the amount you’re expected to pay towards your Medicare Part B and D premiums. For instance, if you’ve recently retired and are now receiving less from your pension check than when working full-time, this is considered a valid reason for re-evaluating your IRMAA surcharge.

Using Amended Tax Returns to Lower Your IRMAA

Your tax return plays an integral role in determining the standard monthly adjustment. Specifically, Social Security uses modified adjusted gross income (MAGI) data from IRS tax returns two years prior – essentially looking back at what was earned then – not necessarily reflecting where things stand today. The good news is that by using amended tax returns following significant changes in circumstances; it’s possible we can work together towards lowering that pesky additional charge.

When calculating IRMAA amounts initially determined by MAGI details found within your IRS tax return two years ago – so let’s say 2023 figures would determine adjustments applied during 2023 – they aren’t always representative of present financial status due major shifts experienced since those records were last filed. Thankfully though there exists potential relief available via submitting updated documents showing revised earnings post any life-altering situations occurring subsequently thereby potentially leading toward reductions concerning these extra payments.

Ashton

June 30, 2024 0 Comments

You’re standing at a financial crossroads. In one direction, the path of Indexed Universal Life vs Roth Ira, glimmers with potential and promise. On the other side, lies the well-trodden road of traditional retirement Planning options like social security or term life policies.

You’ve got some hard-earned money to invest in your future but uncertainty looms large – which route do you take? Would you venture down an unfamiliar path that could lead to unprecedented growth or stick with what’s tried-and-tested?

This post is your trusty compass for this journey. It’ll help demystify Indexed Universal Life vs Roth IRA, compare their unique features, explore tax implications, discuss benefits like lifelong coverage versus tax-free distributions.

Don’t sweat it, this choice might not be as tough as you think.

Understanding IUL and Roth IRA Policies

The financial world is packed with tools to help you prepare for retirement. Two of these, indexed universal life (IUL) insurance and the Roth Individual Retirement Account (IRA), offer unique benefits that can shape your retirement planning.

Defining Indexed Universal Life

An IUL is a type of permanent life insurance policy. Unlike term life policies, which only provide coverage for a specific period, an IUL offers lifelong protection.

This type of universal life policy does more than just give out death benefits tax-free though—it also accumulates cash value over time. This means part of your premium payments go into a separate account within the policy where it has potential growth based on market upswings in specific economic sectors.

IULs aren’t relying solely on stock market performance either—they come with minimum guaranteed earned rates to ensure some level of growth even during market downturns.

Defining Roth IRA

Roth IRAs work differently but share the goal of helping you secure future finances. They are essentially retirement accounts allowing individuals to save post-tax money for their golden years—money that grows tax-free as long as certain conditions are met.

A big perk here is when it’s time to start drawing down those savings after age 59½—the payouts from this retirement plan, including earnings, are typically free from federal income taxes since they were funded by post-tax dollars initially deposited into the account. Furthermore, unlike traditional IRAs or other types of pre-taxed retirements accounts, Roth IRAs don’t have required minimum distributions (RMDs), letting your account grow for as long as you like.

Key Differences between Indexed Universal Life and Roth IRA

When it comes to IULs and Roth IRAs, they play by different rules. Sure, you’ve got some wiggle room with your IUL premium payments, but when it comes to yearly contributions for a Roth IRA, that’s a whole other ball game.

Ashton

June 28, 2024 0 Comments

Let’s dive straight into the heart of 2023 medicare premiums. Like any other year, 2023 brought its own set of changes and adjustments affecting your wallet and healthcare experience. From updated monthly costs to how your income might have influenced what you pay, we’ve got the scoop.

We’ll explore everything from the standard premium hikes to those sneaky Income-Related Monthly Adjustment Amounts (irmaa) that catch some folks by surprise. Plus, get a handle on Medicare Part A updates and what they mean for hospital stays.

So whether you’re trying to figure out how much more you’ll be paying this year or curious about ways to manage these expenses better, stick around. We’re committed to offering insights that not only bring peace of mind but could also ease the strain on your finances.

2023 Medicare Part B Premiums and Deductibles Overview

The landscape of healthcare is ever-evolving, and 2023 brought its own set of changes to Medicare Part B premiums and deductibles. Figuring out these shifts is akin to solving a sophisticated maze, yet grasping them is key for adeptly budgeting your medical costs.

The standard monthly premium for Medicare Part B was $164.90. Every dollar counts when budgeting for health care costs in retirement.

But wait, there’s more. The annual deductible for all beneficiaries under Medicare Part B was $226. These numbers are essential not just as statistics but as key factors influencing your medical spending throughout the upcoming year.

To get even deeper into the details or verify this information firsthand, check out the Federal Register notice on 2023 Medicare Parts A and B premiums and deductibles. It serves as an official source where you can find comprehensive data regarding adjustments in premiums and other pertinent medicare-related changes.

To encapsulate, staying informed about these adjustments is key to avoiding unexpected costs while exploring the diverse insurance choices provided by Medicare Part B, from physician consultations to outpatient hospital care, all designed with the elderly’s financial ease and access to essential healthcare in mind.

Understanding Income-Related Monthly Adjustment Amounts (IRMAA)

If you’ve ever wondered why some folks pay more for Medicare, it’s likely due to the Income-Related Monthly Adjustment Amounts, or IRMAA. This adjustment makes high-income beneficiaries contribute a bit more towards their healthcare costs.

The amount you earn before adjustments significantly influences how much you’ll shell out for your Medicare Part B and D coverage costs. Essentially, if your modified adjusted gross income exceeds certain thresholds, you’ll find yourself paying higher monthly premiums. It’s like being in an exclusive club where the membership fee is based on how much money you make.

Ashton

June 28, 2024 0 Comments

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Ashton

June 26, 2024 0 Comments

Many businesses wanting to upgrade their interoffice communications and better their business phone system look into VoIP phone systems to see if it’s a better fit for their needs. To help business owners decide if VoIP is what they’re looking for we will cover how VoIP works, what it is, and some of the advantages of having business VoIP phones for your company.

What are VoIP and VoIP Phone Systems

VoIP stands for “Voice Over Internet Protocol” and is a phone Technology that allows for calls to use the internet instead of the traditional phone system lines. With traditional phones in the office that’s all you get, one phone per desk with, maybe, some additional lines per phone. With VoIP phone systems you’re able to take calls on a tablet, smartphone or app, laptops, and VoIP phone systems.

It’s a cost-effective option considering that if your office has a VoIP phone service then you no longer need to use a telephone company and most providers offer unlimited minutes. They also come with a range of features such as caller tones, auto-attendants, multiple phone numbers, call routing, and call waiting. For these features and the savings a business has, it’s becoming the new standard of communications regarding business phones.

How Do VoIP Phones Work?

On the tech end, VoIP phones work by having a VoIP adapter take the analog audio signal and change it into a digital one. From there, the digital voice data is sent to your business phone service provider via the internet and routed to the other end of the call. It’s a nearly instant process that gives VoIP phones a better sound quality than traditional phones.

Beyond using the internet instead of phone lines, VoIP works differently for several reasons. One difference is the lack of a circuit-switching method to connect calls while VoIP uses the packet-switching method. This way of connecting calls means that only data is sent and isn’t required to go both ways while using different paths through the internet making the connection more efficient. The data is also compressed to allow for more quick sending, which is why the delay is never noticed.

As an example of VoIP calls, think of Skype.

The Benefits of Using VoIP

Beyond the two advantages listed before, VoIP phones being cheaper and faster, there is a wide range of benefits that your company can stand to be helped by:

Portability
One perk of using VoIP to make calls is that you’re no longer tethered to the premises or desk to make business calls. Wherever you are using the app, tablet, or laptop you’re able to access the business line and connect. This is a great advantage if working remotely or traveling for the company.

Scalable and Flexible
With traditional business phones, whenever you hire more People or are opening a new office you have to get more phones with wires. With VoIP phones, you can simply add new team members via an account dashboard as well as just have people install the right app on their personal phones. These days, smartphones can be split into two profiles so as to not mix personal use with business.

Advanced Features
As mentioned earlier, there are a host of features to use for VoIP calls including:

Conference calls
Virtual receptionist
Hold music
Call waiting
Autodialer
Voicemail to email or text
Video conferencing

There are many other features you can use with your VoIP company phones depending on the provider and is cheaper than traditional telephone service providers because they often have recurring charges for add-ons.

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Explore why F2F Telecommunications leads in providing VoIP phone systems to businesses below.

F2F Telecommunications

Ashton

June 26, 2024 0 Comments

IRMAA 2023 presents a complex landscape for higher income earners navigating Medicare costs.

This Income-Related Monthly Adjustment Amount (IRMAA) is no small matter, especially with the recent changes in Part B and Part D medicare coverage premiums.

The interplay between your Modified Adjusted Gross Income (MAGI), Social Security benefits, and IRMAA can seem like an intricate puzzle. But don’t worry!

We’re here to help you understand IRMAA 2023, its brackets, adjustment amounts, appeals process and how life-changing events could impact your Medicare coverage and costs.

Decoding the Intricacies of IRMAA in 2023

The Income-Related Monthly Adjustment Amount (IRMAA) continues to be a complex component for financial professionals, and with the onset of 2023, new challenges have surfaced. The changes are especially significant when it comes to higher income earners and modifications within Part B IRMAA brackets.

Affecting Higher Income Earners

In recent times, high-income beneficiaries have experienced an upward shift in their Medicare premiums due to adjustments made by IRMAA. This is primarily because these individuals bear additional costs towards both their Part B medical insurance and prescription drug coverage under Part D.

This cost added can significantly alter retirement planning strategies as it directly influences out-of-pocket healthcare expenses during retirement years. Hence, understanding this mechanism becomes crucial for accurate forecasting and effective management of clients’ assets.

Types of Income Used to Calculate IRMAA

Individual MAGI	Couple MAGI	Part B Premium
< $80,000	< $160,000	$93.50
$80,000 – $100,000	$160,000 – $200,000	$105.80
$100,000 – $150,000	$200,000 – $300,000	$124.40
$150,000 – $200,000	$300,000 – $400,000	$142.90
> $200,000	> $400,000	$161.40

Broadening Of Part B IRMAA Brackets

Changes brought about by Medicare policies not only affect individual beneficiaries but also broader categories such as the expansion of the Part B IRMAA brackets. In previous years, these brackets were narrower with less room for variation among different income levels based on Modified Adjusted Gross Income (MAGI).

In contrast, 2023 witnessed an expansion within these categories which essentially means that there’s now a wider range before one moves up into a higher category – potentially leading to increased costs depending upon your MAGI Level.

Being another important aspect, you should keep yourself updated regarding any future changes or alterations so you’re never caught off guard while advising your clients about their healthcare costs during retirement planning. Always remember that despite certain expansions or revisions from time to time, some aspects like ‘irmaa premium magi’, ‘dime irmaa appeal’, etc., might remain unchanged over consecutive periods.

2023 IRMAA Brackets

Individual MAGI	Couple MAGI	Part B Premium
< $85,000	< $170,000	$96.40
$85,000 – $107,000	$170,000 – $214,000	$134.90
$107,000 – $160,000	$214,000 – $320,000	$192.70
$160,000 – $213,000	$320,000 – $426,000	$250.50
> $213,000	> $426,000	$308.30

Navigating the complexities of IRMAA 2023? Stay updated on changes affecting higher income earners and broadening Part B brackets. Knowledge is power in retirement planning. #IRMAA2023 #MedicarePremiumsClick to Tweet

The Role of Social Security in Calculating Your IRMAA

Decoding the role that your Social Security benefits play in calculating your Income-Related Monthly Adjustment Amount (IRMAA) is key. The final IRMAA payment amount depends significantly on your Modified Adjusted Gross Income (MAGI), as determined by the Social Security Administration (SSA).

How MAGI Influences Your Final IRMAA Payment Amount

Your MAGI, a metric used by the IRS to gauge income, directly impacts how much you’ll be required to pay towards Medicare Part B and D premiums under the dreaded Medicare IRMAA surcharge. This figure includes adjusted gross income from tax returns plus any non-taxable interest.

If beneficiaries find their MAGI crossing certain thresholds or ‘IRMAA brackets’, they will have an additional premium for Medicare Part B and D coverage added onto their bills. These IRMAA brackets remain unchanged over recent years, making it easier for financial professionals planning ahead.

This implies that if you’re a higher-income beneficiary whose earnings fall within these parameters, anticipate cost added in monthly costs compared with those earning less.

Ashton

June 23, 2024 0 Comments

Houston inventors can breathe a sigh of relief when they choose to apply for non-provisional patents, as these offer long-term protection (up to 20 yrs) for their creative works. Unlike provisosional patents that offer only short-term protection, the longer duration of a non-provisonial one allows inventors more time to commercialize, advertise, and profit off of their work without worrying about copycats or thieves nipping at their heels. With this extra time & security, entrepreneurs have the freedom to concentrate on maximizing profit streams without worry about rivals swooping in with copycat products or intellectual property theft.

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