FICA Payments in Late Life & Medicare Part B Premium Anomaly

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I have two questions:

1. My reports show small amounts of FICA taxes paid for both spouses starting at ages 72 and 71 and continuing until death. We won't have any wage income, so what does this mean?

2. I am in the fortunate group that will pay a higher Part B premium after starting SS at age 70 due to exceeding the income threshold for the minimum premium. Possibly related to Question 1, the total spending shows a jump in Part B premium in the year when we attain ages 73 and 72, but I would have expected the jump earlier. Is this a bug?

Thanks,
Paul G

Comments

dan royer's picture

It's probably the Unearned Income Medicare Contribution tax. This is a new tax that treats unearned income over $250,000 the same as earned income over $250,000. Since this is a Medicare Part A tax, we report it as FICA.

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