does Part B Medicare deduction count as income?

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  • Judith
    Lv 7
    3 weeks ago

    If you are asking if it is treated as income for income tax purposes then yes, it is.  IRS counts gross income; not net.  It's just like when you worked and got a W2 form from your employer showing your gross wages and then the amounts deducted for taxes and insurances resulting in your net income.  IRS is interested in your gross income; not your net.

    If Social Security didn't deduct the Medicare premiums from the benefit then you would be billed and you would have to pay it directly.  Same thing.  It is part of your income; it just happens to be a bill that SS deducts so that you don't have to be billed and bother with making monthly payments.

    Depending upon whether or not you had other income depends upon whether or not you must pay income taxes on a portion of your social security benefit.  You do if half of your yearly SS benefits + other income = $25K if single or $32K if married.

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  • John
    Lv 5
    3 weeks ago

    The gross amount of your social security, before any medicare deductions, is what the IRS bases all social security income calculations upon.  If you itemize deductions, your medicare premiums are treated like any other medical expense.

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  • 3 weeks ago

    It is paid from your regular Social Security benefit so is part of your income. Depending on other income )% to 85% of your Social Security is taxed as ordinary income.

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  • Eva
    Lv 7
    3 weeks ago

    It's added to the amount of what you actually received to determine your social security income that is reported on your tax return. When you get your 1099SSA, the amount you report is in box 5, the pink one on the right hand side. You then have to perform the calculation to see how much of that is actually taxable.

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  • Anonymous
    3 weeks ago

    No, it's not 'income'.  Income is when an employer pays you for a job, interest from investments, etc.

    • Judith
      Lv 7
      3 weeks agoReport

      Income is money received from ANY source.

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