What Happens to My Medicare Costs When I Sell My House?

I recently spoke to someone who is going to sell their house and make a $300k profit off the sale. Will this make her Medicare go up? It depends. In this video, I'll explain what affects your Medicare costs after capital gains from a house sale and how to reduce the impact.
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[@TheMedicareFamily]

Let me know what you think about the video in the comments below! Get my FREE Cheat Sheet, Workshop, and other tools here: linktr.ee/medicare.mama

[@sallythibodeaux7992]

How can you be exempt from some of the proceeds from selling a primary residence and moving? Where can I find the information? Thank you!😊

[@kirklandappleby109]

My mother sold her rental property in 2022 paid IRMAA for Medicare B &D in 2024 she got her IRMAA statement for 2025 that said they are using 2022 because 2023 income wasn’t available. I’m helping her file an appeal. My mother is in her mid 80’s and hasn’t kept vigilant about these things and I’m sure she has paid more than she might have had too in the past because she hasn’t really been capable of be vigilant. It is really disappointing that an aged person with slowed mental acuity needs to be so vigilant to protect themselves from the government along with phone, email, and online scams especially when access to SSA, Pension, VA etc. require online access to avoid being on the phone on hold for hours.

[@mcmlxii4419]

It would be nice if you would explain what an "irma bracket' is.

[@austinbar266]

It’s critical for Medicare-eligible individuals to select optimal plans to reduce the likelihood that lack of coverage would prevent smart health care utilization choices, not only for their health outcomes, but also to help keep health care spending in check.

[@joshbarney114]

In my opinion, enrolling in medicare isn’t just a way to get health care coverage when you turn 65, it’s also a major part of ensuring financial security during retirement. Individuals can seek counsel from a certified financial advisor, who can provide specialized advice and methods to decrease expenses and maximize income.

[@rogerwheelers4322]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $800,000 by investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@FabioOdelega876]

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[@rogerwheelers4322]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@FabioOdelega876]

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[@darylefleming1191]

Crazy. We spend 30 years paying off a house and the government wants to take more after we have been taxed on the house multiple times (Fed & State income and property taxes).

[@Barbara-jn2gw]

Welcome to America. 🤪

[@Luckyduck10]

@@Barbara-jn2gwit is a crime!

[@stevepd1]

I agree. It's insane. This is why we revolted against England.

You need to get a tax pro that can show you how to claim depreciation, interest payments, inflation adjustment, maintenance costs and so on..

[@darylefleming1191]

I have a great tax person, but doesn't stop the government from taxing us three or four times on the same dollar. Now they are trying to pass a death tax.

[@ES-7766]

Americans are constantly paying in one way or another for things that they paid for with their hard earned money. We pay tax on the same money, over and over again. It’s ridiculous.

[@hollymerchant9550]

It's corruption! Caused by greedy, corrupt public servants who serve themselves first!

[@ohenenana4392]

That's the scam. You nailed it.

[@Barbara-jn2gw]

nailed it

[@jjk2one]

@@ohenenana4392 It's organized

When you come to the realization that although you own the home you are just a PSL renter of the land it is on.. Stop paying the property taxes (rent) to the County/State and watch them come and take it from you to auction it off to someone who will pay the rent/PSL fee.. And that is the scam, you don't own that land by the government does.. They also try and trick you with inflation saying your home is worth more and you made a profit.. If you calculate in that inflation and the cost of the interest and maintenance you find that there is little to no real profit.. The Supreme Court has already ruled that this predatory nonsense by the tax collector is unconstitutional thus illegal just like taxing you on "potential" future profits on assets including stocks and bonds..

[@sesame-dl2ym]

Sad because irmaa payers pay double for the same care as everyone else. Seniors seem to be penalized for saving for retirement and not living off the government. Am I wrong?

[@dalewalker5433]

This happened to me. We sold a parcel of land and our Part B premium went up by $325 (plus the original premium) for EACH of us. This was after paying the 45k in capital gains. Nothing like getting screwed for saving for our retirement.

[@markalexander832]

@@dalewalker5433 Just think of it as an end-of-life eye gouging. They are doubling down on screwing you while they can.

[@nancylpr]

You are absolutely correct. We are being penalized for being responsible and delaying gratification in order to pay for needs on our senior years.

[@markalexander832]

Exactly right. The half riding in the wagon want those of us pulling the wagon to pull faster and harder so that they will have a breeze in their face.

[@RedfishGB]

Don’t forget to deduct your improvements from the sale price to determine gain. Pool, addition,…..

[@petermadany2779]

Good comment!

[@stephenbay9564]

Very interesting. And I mean about the $250,000 limit on primary house sales. They enacted this in 1997 but it seems they never adjusted it for inflation. Back then almost nobody would have to pay tax on gain, because nobody had THAT MUCH gain. So while I am retired and collect SS, and have been hit with IRMAA before, this news hits hard. HOWEVER, the BIGGER hit as I see it is NOT the IRMAA, because that would be relatively small, and for one year only. The BIG hit will be paying the tax on the GAIN! Thank you so much for this info!

[@Singlesix6]

Long Term Capital Gain (if you owned the house more than 12 months) would be taxed at 0% up $47,026 for a single person and at 15% for the gain between $47,026 and $518,900. Above that it goes to 20%. It's better than the rates on regular income.

[@catherinebutler1146]

You can also deduct improvements. Even as a single person most of us will not go beyond $250,000. That being said for this and S.S. there should be adjustments made for inflation.

[@John-is9nj]

@@Singlesix6 Dont forget the Obama care tax.

[@joking6052]

Paying taxes on earned income, paying taxes on the interest the bank payed you on the savings from you income, paying taxes on the taxes and on the taxes already taxed. And even at this tax rate, USA 50 trillion in debt to China.

[@pennyhuls2607]

Yeah all those taxes and zero accountability.

[@warrenlucier5796]

I think they need to adjust the exemption up from the current $250,000 for those who were long term home (resided there) owners, as what you paid and what you can get is current market value only, it's actually not a profit. You will need to buy another residence to live in or you just got your money back adjusted for inflation, as you weren't doing an investment or flipping for profit.

[@Dbb277-2]

Oh F. I am screwed, lol. Selling my rental and probably triggering this. Thank you. I need to speak to my accountant. 😢

[@1slowens]

The IRMA expense won't kick in until the 2nd year after your rental sale...Medicare applies IRMA ever year based on your earnings 2 years ago. So depending on your income from investments, you'll only get hit with the IRMA increase that 1 year. For 2025, the maximum Medicare Part B with IRMA adjustment is about $625/mo.

[@1slowens]

In case I wasn't clear. The 2025 rate is based upon your 2023 earnings. So in '26 there will be a new max. IRMA based on 2024.

[@lordperilous]

Great and timely information, and confirms what I expected (I will be selling my home in a few years, just before hitting 65). Originally I was worried, but now I know I'm golden. :)

[@Dee-ty9ny]

Sounds like she said there's a 2 year look-back?

[@lordperilous]

@@Dee-ty9ny Yes, the IRMAA surcharge is based on your taxable income from 2 years prior. Having the house as primary residency for 2/5 years is how you avoid the taxation on sale (up to $250,000 in gains).

[@harold1901]

Certainly! Here are a few examples to illustrate how selling your house and using the proceeds to buy another one could affect your Medicare premiums: Example 1: Sale of Primary Home with No Capital Gains Tax Scenario: You sell your primary residence for a profit of $300,000. You are a single filer, so you can exclude up to $250,000 in capital gains from taxes due to the capital gains exemption for primary residences. Outcome: Since the profit is less than the exemption amount, you don’t owe taxes on the sale. You use the full $300,000 profit to purchase a new home. Your income does not increase, so there is no impact on your Medicare premiums. Example 2: Sale of Primary Home with Capital Gains Over the Exemption Scenario: You sell your primary residence for a profit of $600,000. As a single filer, you can exclude $250,000 from taxes under the capital gains exemption, but the remaining $350,000 is taxable. Outcome: The $350,000 in taxable capital gains increases your taxable income for the year. If your income (including the gains) exceeds the threshold for Medicare’s IRMAA (for example, $97,000 for single filers), it could result in higher Medicare premiums for the following two years. If the sale triggers a substantial tax bill, this could also increase your MAGI. Example 3: Using Home Sale Proceeds to Invest Scenario: You sell your home for $500,000 and have a $100,000 profit after the sale. You don’t owe taxes on the profit because the home was your primary residence and within the capital gains exemption limits. You decide to invest the $500,000 in stocks, bonds, or other assets, which generate $20,000 in investment income (dividends, interest, etc.) in the same year. Outcome: The $20,000 in investment income counts toward your taxable income for the year. If this additional income causes your MAGI to exceed the income threshold for Medicare’s IRMAA, it could result in a higher Medicare premium. Example 4: Sale of Non-Primary Residence (Rental or Second Home) Scenario: You sell a rental property or a second home for a $400,000 profit. Since this is not your primary residence, you are not eligible for the capital gains exemption and must pay capital gains taxes on the entire $400,000 profit. Outcome: The $400,000 in taxable capital gains will increase your taxable income for the year. If your total income, including the gain from the sale, pushes you above the income thresholds for IRMAA, you’ll pay higher Medicare premiums for the next two years based on your modified adjusted gross income (MAGI). Example 5: Using Sale Proceeds to Buy a New Home and Avoiding Taxable Gains Scenario: You sell your primary home for $450,000 and make a $200,000 profit. You use the entire profit to buy a new home. Since the sale qualifies for the capital gains exemption (you’re under the $250,000 limit for a single filer), there are no taxable gains from the sale. Outcome: Since there are no taxable gains and you don’t invest the proceeds in a way that generates income, your MAGI stays the same. This means your Medicare premiums would not change as a result of the home sale. In Summary: Taxable capital gains (from the sale of a second home or profits exceeding the primary residence exemption) can increase your taxable income and may lead to higher Medicare premiums due to IRMAA. Investing the proceeds from the sale in income-generating assets could also increase your taxable income and affect your premiums. Using sale proceeds to buy another home without increasing taxable income will not affect your Medicare premiums. If you’re concerned about how a home sale might impact your Medicare costs, it’s always wise to consult a financial planner or tax advisor who can help you understand the full implications based on your specific situation.

[@Dee-ty9ny]

Thanks for this write-up on how selling a primary or second home can affect your capital gains taxes & income taxes, and MAGI - Medicare Adjusted Gross Income, which can raise (or not) your monthly medicare premium. The included scenarios are helpful, though your advice to meet with a financial planner is good advice.

[@Singlesix6]

'"Scenario: You sell your primary residence for a profit of $300,000. You are a single filer, so you can exclude up to $250,000 in capital gains from taxes due to the capital gains exemption for primary residences. Outcome: Since the profit is less than the exemption amount, you don’t owe taxes on the sale." If you have "a profit of $300,000" and are single and exclude $250,000 of the $300,000 profit then you are taxed on the remaining $50,000 profit. You income goes up $50,000 and you may get into IRMAA depending on your other income.

This is sound tax advice, you sound like you either have experience in a sale like this or you are an educated tax pro.. The whole scenario is mute if you use that money to buy a new home within a year of the sale.. At that point only the interest/dividends/stock value gain from the money during the period would be taxable as income unless those profits also went into the purchase of a new home..

[@honestyfirst3994]

Dear Harold 901, Thanks much for such great/needed information in these times of so much greed and deception, Hppy 2025!

[@mariateresabalina5453]

Thanks for these info.

[@vickygrooman7966]

We me IRMAA in 2019 after the sale of inherited property we sold in 2017. Monthly medicare premium went from $109 to $504 per month EACH! I turned 65 in 2019. Wish somebody would have informed us about this in advance.

[@lesliebooth5623]

On inherited property, there should be a new cost basis appraisal done right after your relative died. If you sell it shortly after that, there would be little, if any profit to pay tax on. So, it shouldn't affect your medicare premiums.

[@kathyt2108]

Is that your premium forever or just for that year?

[@StormyTuesday5108]

Yup, just happened to me. Worked my butt off my whole life and my reward is $400 a month medicare payments

[@tammivandyke2889]

Minus the costs of improvements, such as new roof, remodel expenses and more.

[@gr8dvd]

If documented… most of my home improvements were 30y ago and I’m a bit challenged when it comes to record keeping ☹

[@roselee4445]

I thought so

[@litrealred6840]

Hi! I need information on nursing homes, I trust you! Thanks! 🤗🥰

[@EricCrawford777]

Great information. GOD Bless

[@Amy-hs1qe]

I sold in Dec 2023, made an enormous profit from my home of 30 years. That profit went to buy two replacing homes with not a huge amount leftover. Doesn't matter, I'm taxed on that profit and paying a huge amount more for my very first year of Medicare. What can you do - it's not within our control.

[@michellehamilton4075]

Shouldn’t they consider all the interest she paid on the mortgage?

[@samharbers3858]

No one that is retiring should never have to pay tax , we have been robbed since they stole our birth certificates and sold us out

[@MatterDaddy6]

And when you pay off your house and property you shouldn’t have to pay taxes again on the property seems to me I’m being double taxed.

[@hanskasper9965]

From an income tax perspective, everything that was said in this video is correct. Also, it is correct that the Medicare people do a two year look back on what your income was. However, even if you sell your house or have other large substantial income that comes in just one year and you’re on Medicare, there is a special form to file called a form 44 that is a Social Security form. If you fill this out and mail in a copy of your tax return with it or take it to the Social Security office showing them that it is a one time event you can prevent your Medicare costs from going up due to an increase in income. You have to do this for two years in a row because of the two year look backso put it on your calendar to remind yourself to do it two years in a row.

[@Dbb277-2]

If it’s your primary residence some of the profit is dismissed. $250k for a single and $500k for a couple. Less initial expenses and sales expenses (commissions, title/attorney fees and any repairs within a window prior or during the sale m). In addition any major improvements like adding a freestanding garage, fences, driveway etc. Hopefully you kept records of any expenses. Speak with an accountant if you don’t have one. Don’t try to navigate this without professional advice.

[@kentschrader3900]

I can't imagine it would influence Medicare costs just because you sold your house regardless of the profit. It's not income, it's just converting what's already an asset to another form - from real estate to cash. Now, if someone GAVE you a house, that would be income. I suppose the IRS does want to recognize when we've received something whether it's from an outside source or from "the market," but a home sale isn't a recurring deal and should be a one-time impact if any. In fact, banks and mortgage companies will usually EXCLUDE any "income" from capital gains in qualifying someone for a loan....

[@lisat9802]

Thank you for this video. Very informative.

[@maybee...]

When does over charging ever stop?

[@itsnotme07]

Great advice and awesome question for those of us coming on on filing for Medicare at 65. Question here is, if you don't take Medicare at 65, but you do "register" for it as required, do they look at the 2 years back from when you take it (I'm guessing yes) or only when you first file at 65 (I'm guessing not)?

[@sandiegowildcat]

They look every year after you file. So you could pay no IRMA for years but then have a big gain or high income and be subject to IRMA for a year.

[@itsnotme07]

@@sandiegowildcat Thanks very much!

[@rorybellamy2533]

Profit? don't forget the , property tax paid, insurance paid, improvements and repairs , mortgage interest , maybe some profit ? maybe not.

[@JT_70]

I’m on Medicare and sold my lake property last year for a net profit over $200,000. My IRMAA adjusted Medicare premiums are going to skyrocket! And, since I am a standard deduction filer, the premiums will not be not deductible for me. To avoid penalties and interest I had to file a quarterly return and pay estimated taxes last year on the gain.

[@ronaldlamascus1944]

That is a second property so totally different situation than primary residence.

[@kimbuck-2]

​@@ronaldlamascus1944 A second property with a gain and no exemption and an IRMA impact. What are you trying to convey???

[@frostykitties2050]

We are in middle looking to sell. Well the costs to sell and move now takes huge chunk. That is not in your pocket money.

[@arthurshingler2025]

Thanks!!! Great information!

[@robinyarborough4727]

👍🏻, thank you for sharing

[@rogeliogarcia7423]

Great information!!!

[@mikerapp8163]

It’s crazy. Inflation is not counted in the tax brackets

[@JuanMartinez-kn2qs]

Thanks for the information. Needed

[@jasneskis]

It definitely effected my erma and social security and I’m 81. It hurts what SS does. SS took $300 from my monthly SS payment.

Actually adjusting for inflation, maintenance costs and depreciation of the home over the years there will be little to no profit to declare.. If she uses the money to buy a new home within 1 year they will not assess this as an asset since your home you live in is exempt from the listing of assets.. However by moving your other personal assets inside the home these can be itemized and assed thus changing your rate.. In 2025 these rules got stricter and many people are seeing an increase or a demand of itemization and being dumped from Medicaid or seeing their SSI/SSD payments altered.. I lost Medicaid partial and my disabled son is being run through the Social Security meat grinder because of a part time job he had and his assets..

[@Star2ice]

I hope someone reads my post and replies correctly to my situation. 🙏 I am 67 and still working, but planning to retire @69. I'm planning to sell my only residential property I have this summer and purchase a smaller house. My property has gone up almost twice due to its location. I owe $350,000 on my mortgage. I'm hoping to sell it for $900,000. I will purchase a smaller house around $550,000. Paying commission and paying off my mortgage will make me under by $50,000. My question is should I buy a house after selling my house or prior to closing to avoid any extra taxes or paying higher Medicare premiums? Many thanks.

[@kathyt2108]

You need to talk with a Medicare specialist (not necessarily the SS office). I would do that as soon as possible.

[@Singlesix6]

That's not how it works. If you sell for $900,000 you then subtract what you paid for the property, and purchase related costs listed in the IRS directions, to get what your profit is. You need to read the entire instruction booklet to learn what else you can add to your cost basis - major improvement things. What you sold it for, minus your selling costs for the realtor, and minus your cost basis gives you your profit number. If you are single you subtract $250,000 ($500k if married) from the profit number to learn how much you have to pay tax on. That number is your long term capital gain. The details matter.

[@jeanneelliott7243]

We save our whole lives into a home, pay tax on the money to buy it, pay property tax every year, then have to pay tax when we sell it! What a scam!!! This doesn't even include the many costs of being a home owner, like roofing, plumbing, etc...

[@scottmueller550]

Unless the tax laws have changed, if you reinvest your capital gain in another primary residence within a year, you would not pay capital gains tax. Check with whoever does your taxes to be clear about the taxes .

[@jeanneelliott7243]

@scottmueller550 Unless it is a capital gain from a foreign property. Some of us invested in a foreign home too, especially if the spouse is from another country.

[@pennyhuls2607]

Problem is the property taxes on that new higher priced property is more than fixed income people can pay.

[@theresawolfson6501]

Interesting. Thanks

[@bmepdoc9675]

Anxiously waiting to see how the new administration works through issues like these.

[@arkyboy14]

When you don't own your house or land but renting it from the government.

[@lewis2553]

1:04 I think you're talking about the capital gains tax exemption, here, right?

[@Chu6um]

I would wonder if that capital gains would be further offset if those funds were used to purchase a new residence after moving? In some cases, the cost of a new residence may even be higher. If that computation only looks at the capital gains on the initial sale, and ignores the use of those funds, they would still find ways to raise those costs and taxes further. It might also be noted that the calculation also tends to ignore any cost of renovations and/or home improvements over the years. The whole process still seems like just another Ponzi scheme, if you look at how our federal and state government 'calculate' how much they take from people, yet not a spark of thought as to how they seem to spend.

[@josephpapajr.3757]

good infomation.

[@JohnDoe-pm3oq]

The GOVT thinks it's entitled to more than it truly deserves.

[@StormyTuesday5108]

Government isn't entitled to anything

[@llau8482]

Please discuss Medicaid and how the Estate Recovery Program affects people. Please discuss whether people who have been approved for Medicaid but have not made any claims are still subjected to Estate Recovery.

[@Dilberts_Dogbert]

Yikes! Statement assumes SSDI not SSI. On SSI there are all sorts of yellow/ red flags to be concerned about

[@idee7896]

So very glad YT Algorithm brought me here ! Thank you!!

[@lornaschipp4230]

I just went onto their website and it is NOT a secure line.

[@jeanettelebarron3306]

I am 70 getting medicare. Ive read that they tax you of your income 2 yrs ago. This year Im making 1/2 as much as last year. Medicare only now. Do i need to prove this before getting my taxes done in April?

[@1pcmedic]

This needs to be fixed ASAP by Congress, your house is something you already have. Not something new you gained by employment. Inheritance shouldn't effect your Medicare either..............neither should an in house stock split when you DID not initiate any money changes personally.

[@craigaaron624]

Well It’s a good thing this system is so simple to understand. :(

[@steveolive9991]

Keep in mind that the price you paid for your house is not the cost basis. Any repairs and improvements -- new windows, new central a/c, new furnace, kitchen remodel -- is added to the price of the house. For example: If you paid $300k for a house and made $100k in repairs and updates, the cost basis for your house is now $400k. If the current market value of your house is $600k, you would subtract $400k from that $600k and that would be your profit of $200k, which would be less than the $250k exclusion, so no penalty.

[@Honestandtruth007]

She didn't Make $ 300,000 profit......Why ❓ because We all pay property TAX and expenses to Fix and maintain. So many people forget that

[@URKlewless]

Dude…number 1) she is using nice round figures to help people understand the concept. 2) you don’t get to deduct property taxes, or add it to your $100000 base, like you are suggesting. 3) fix and maintain are not values you get to add to your base. So after paying closing cost, and depending how she negotiates it, she certainly does make $300000 in profit if she had no home improvements to add to her base price of $100000. Don’t be a keyboard CPA cause you are dead wrong .

[@Honestandtruth007]

​@@URKlewless So actually,..... People in Business and in Government basically do a Wrong CALCULATION from REAL profit earnings and loosing. That's Why the Whole World 🌍 is Screwed Up in Inflation and Economic DOWN Fall...

[@vairon7474]

No capital gains if she’s lived there a few years.

[@peterbedford2610]

She is allowed $250K tax free from the IRS. Her state tax may be different . The other $50K is taxed at long-term cap gains rate.

[@phillyarchdad]

Improvements, not maintenance and taxes, are deducted from long-term capital gains. Not sure if SSA allows that or not.

[@leonaowen9234]

Questions - What about if you have United Health/ Medicaid and you sell your house?

[@forza-e-honore]

All these crazy rules to navigate as a result of not simply eliminating the FICA cap.

[@Judes121]

Do I understand correctly if single you deduct 250,000 before your figure the income for irmma Medicare ?

[@URKlewless]

Any primary home you lived in for 2 of the last 5 years is exempt from taxes on 250k profit thus is not included in taxable income. And it doesn’t need to be 2 years in a row. 6 months here 6 months there etc

[@cjimcook]

Short answer: No, you are confused. Longer answer: When you sell your house, you subtract $250,000 from the "profit" to determine how much is "taxable income". What is "profit"? Profit is the sale price minus the purchase price. So, How does this affect IRMAA? IRMAA is computed on your total income. Add in that "taxable income" from selling your house as part of computing your total income to determine whether you must pay IRMAA.

[@michael.ogrady1719]

Is there an IRMAA Calculator out on the web someplace???

[@Qwazier3]

It's SOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO unfair. When you retire (most of us) won't be making our full pay like we were when we were WORKING. So I'm supposed to sell my house for what I paid for it so IRMAA doesn't drown me in a medicare premium I can't afford?!!!!!???? Why don't I just hand my 401k over as well? Didn't hear about this IRMAA stuff till this week. I was looking forward to downsizing and selling off all the stuff my life collected through the years. Life just gets harder and harder during a time when you want to kick back.

[@Amy-hs1qe]

You said it.

[@craigpennington1251]

They're trying to take that too. Just have the right politician in and it's a done deal.

[@rusty9045]

Is the MC premium affect you speak of a one-time (single CY) bump or is it a new floor going forward?? Thank you.

[@vendelius]

Great Video

[@justaviewer111]

What I would like to know is if the house sale income that bumps up my Medicare Part B 2 years later, goes back down by itself the following year or do I have to contact them or file some form to get it back down?

[@Singlesix6]

No. I never have had to do a thing.

[@gloriamadaffari5404]

The Government double dips into the taxpayer’s money. Doubt it? Take a look at the politician’s lavish lifestyles that far outweighs their salaries.

[@gc1172]

I sold a house for more that that profit and moved to a retirement community and nothing on SS or Medicare was even asked and I have filed taxes and everything.

[@NorCAL_Stacker]

Regarding IRMAA, when the Social Security does its 2 year look back, FOR EXAMPLE IN 2026 THEY'LL LOOK AT 2024. The IRMAA income brackets that will be used will be established in 2026? And not 2024? If I am at $208,000 AGI in 2024, will that trigger an IRMAA event in 2026 for me? I'll be 65 March 2025 and on Medicare.

[@ronnymcfarland7775]

What about if you owned it for 30 years?

[@Amy-hs1qe]

Doesn't matter. I sold my house of 30 years in Dec 2023. Federal and state taxes on the profit were astronomical, my first year of Medicare I'm told will be over $600 monthly - I think that's without a supplement!

[@bikeny]

I've replied to 1 or 2 comments, but I wanted to put this as a separate comment: When they are doing the 2-year look back, they are comparing that tax year's Modified Adjusted Gross Income to the threshold. For the benefit of folks like me who thought that term meant AFTER the standard/itemized deduction, let me correct that mistake. No, it does not. For the 2023 tax year form, it is LINE 11. If you do find yourself subject to IRMAA, there is an appeals form.

[@hollymerchant9550]

Thanks for the information.

[@Singlesix6]

@@hollymerchant9550 They add back in any non-taxable interest to get the MAGI. "MAGI is your adjusted gross income (AGI) plus non-taxable interest. AGI is the sum of all your taxable income, including IRA withdrawals, capital gains, dividends, and interest from CDs. Non-taxable interest includes municipal bond income"

[@pamela5568]

Home sale isn’t really the issue unless Medicare is taking care of long term care - they’ll come after everything then. But, I get social security and a federal retirement that together are now just barely over $50K gross, but every year I end up paying the max for Part B, now $185 a month $2,220 without drug or hospital coverage. That costs more than my full health insurance coverage.

[@morrismonet3554]

Medicare does not pay for long term care.

[@pamela5568]

@@morrismonet3554 Okay, let’s play label games. Medicare pays for skilled nursing facility, and some Medicare Advantage Plans pay for nursing home care. Medicaid, yes a joint federal and state program, can pay for nursing home care. Depends on your medical issues and income. Your other comment was harsh - calling people ignorant doesn’t win friends or influence enemies as they say

[@morrismonet3554]

@@pamela5568 When did I call anyone ignorant. You were wrong, and like any woman, refuse to admit it and make it about the man. 🤣🤣🤣🤣🤣🤣

[@Singlesix6]

@@pamela5568 Medicare does not pay for someone to live in a licensed nursing home. Only Medicaid will do that. Medicare will pay for rehabilitation in a nursing home after, say, surgery, but only for a limited time. "How many days will Medicare pay 100% of the covered costs of care in a skilled nursing care facility? You pay nothing for covered services the first 20 days that you're in a skilled nursing facility (SNF). You pay a daily coinsurance for days 21-100, and you pay all costs beyond 100 days." Some gap plans or advantage plans will pay the deductible for days 21-100.

[@pamela5568]

@@morrismonet3554 Good grief

[@firehorsewoman414]

So if I own a home that I live in 100% of the time and it is my homestead (Texas) but I sell it for a 300k profit; however my drivers license address is for a property we are going to build a home on. Does that change anything as to my home counting as my primary residence for this tax exemption?

[@URKlewless]

No…as long as you can show you lived in it for 2 years total out of the last 5

[@firehorsewoman414]

@ thanks

[@rosarywarrior8608]

We were told my husband couldn’t get disability because I owned a home and had things that were paid for. I’m not understanding when you say disability is only assessed for you inability to work. He cannot work and yet they told him he wouldn’t get anything because of what I own. Please help me understand this. Thank you.

[@mikemrha9013]

I retired (single) last year & met IRMAA. From last July to October IRMAA sent me a bill for $2200 plus what I had already paid-in for those months. After the two year look back IRMAA looks back one year. For 2025 becuase I ended up in the same top tier of the bracket am paying $968 per month for all parts medicare plus United Heath Care advantage & Delta Dental. I foolishly didn't know about IRMAA. ...it wouldn't have made a difference if I did unless someone knows away around it?

[@mikemrha9013]

@@daledrawbond1222was talking about medicare not the affordable care act or perhaps I don't know the difference?

[@mikemrha9013]

@@daledrawbond1222 thanks for sharing

[@hollymerchant9550]

Are we forced to buy health insurance?

[@mikemrha9013]

@hollymerchant9550 am not sure but @ 68 for me it's a safety net. I don't take pills or go to the doctor other than a physical. The costs penalized those who worked hard, came from nothing but did well.

[@flybirds2024]

Just a question is the income computed on the price paid and the selling price or is it the total income made from the sale. The reason I am asking is that I purchased my home for $385k but only have a $170k mortgage, so if I sold for $430 would my income be $45k or the $260k profit?

[@jamesalias595]

I don't know tax laws but if a home is a capital gains, then there is more than just the initial purchase cost, people make improvements, there is the selling costs and other things that should be deductible out of that $300,000. So did she really make $300,000 I don't know.

[@jordanwhite5470]

Profit on the sale of a house is also not "income"; it's a Capital Gain.

[@hollymerchant9550]

What if my spouse supplies health insurance through his/her employer?

[@info3496]

She can also subtract the amount paid to the real estate agents and other closing costs which would run around 30 to 35 thousand. So her profit is not going to be 50 thousand

[@maricelarooper9558]

So I’m getting ready to to retire, I’m 61, my husband is 65. We want to rent out our house and move to another country. Is that going to affect his Medicaid and mine in the future? Should we sell or will that affect both our Medicaid? Ty

[@thegreatwp]

What if you spend all your profit on a new house?

[@walteropanasets9178]

Old law don’t apply anymore.

[@petervaichus6978]

It’s not just 100k for the house - have to include the total interest and taxes paid over a 30 year mortgage at whatever the interest rate was.

[@chrismcpherson1586]

I sold a home on 10 acres and it did not affect my Medicare ❗️💯❗️

[@jerilyncibulka6162]

Someone told me eventually we will all own nothing and be happier for it. I’m still trying to figure that out…?

[@martinnormand7458]

I’m 63, so two years from Medicare, want to sell and investment property soon to payoff our home. Paid $86k value now is around $275k. My question, when wife and I sell this investment property, will the sell only impact one year of Medicare cost or lifetime Medicare cost?

[@Singlesix6]

There is a two-year look back at your income. That sets your rate for one year. Then they do another two-year lookback and on and on. They need the two-year lookback to allow time for your taxes to be processed, extensions, adjustments, whatever and then they need time to process the calculations and notify you. As much as I dislike paying IRMAA, it has been one of the smoothest government processes I've encountered. I'm 74. Two of my IRMAA appeals required me to guesstimate my income without knowing if I would sell any stock, what dividends would be, what interest rates I'd get on CDs, etc. So both times I made a good guess. Both times I was low. At the end of each year I got a letter telling me how much I had underpaid based on my guesses and they took what I owed out of my SSA retirement checks for a few months. It was reasonable and I didn't have to do a thing. Oh, and I wasn't charged any interest or penalties.

[@martinnormand7458]

Very helpful info. Thank you!

[@marblox9300]

There are way too many rules in America. Land of the Free - that's just a funny joke. :(

[@Ray-nj8jx]

I don’t know why these people are in business they never answers her phone or return your call 😖

[@mikeb3709]

Dont own pull money out of bank when get checks

[@tcwaterdrill]

One thing this did not address or maybe I just did not hear it. If we sale our land , not our home and make a $350,000 capital gains on that land in 2025 and we are on Medicare in 2025 for how many years will we have to pay the extra IRMA cost??? Will we have to pay the rest of our life or not at all because in 2026, 2027, 2028 forward our income will be back below $75,000 which is back below IRMA's lowest bracket for a couple. Please someone explain this situation for the rest of us because this could effect old people that cash in lifelong rental property. HELP HELP HELP

[@janetbillington286]

This crazy!!! When does the govt keep their fingers off your money?

[@michaeldietz1223]

What about a 67 year old in Medicaid that wants to sell her home for what she owes on the note? Thank you

[@DebLindley-xg8gz]

What other assistance are you receiving from your State? You may want to check into what you signed. Sometimes it's not just Nursing Home Resident's who are affected when it comes this type of situation. Good luck.

[@michaeldietz1223]

@ thank you

[@DebLindley-xg8gz]

@@michaeldietz1223 you're welcome

[@Ray-nj8jx]

Sold my cabin made 250 K how bad does it hurt on my Medicare? 😳

[@judyjohnson1012]

We had an investment that sold a couple years ago. We made about $200,000. Then our Medicare part B went from about $170/mo to $450/mo. This year mine went down to $370/mo but my husbands stayed at $450/mo. Is that right and is there any way around that? We rarely use part B.

[@daddylogan]

Basically the same as figuring capital gains.

[@yvonnehedeker3441]

Happened to my husband. He lost $550 of SS a month. Painful.

[@alohawg]

This is too much government in our lives, way too much.

[@petermusto3704]

Have 3 streams of income. I'm retired from the Federal Government, I'm in my late 60's. I recieve a Federal Pension, Full Social security, and the TSP. I inherited $250,000, my Medicare for 2025 is going to be $480, it would have been $185. Because of the Inheritance, the complete gross taxable income was $199,000 because I pay taxes on the Pension, TSP and Social security. I feel I got screwed because I had to pay the Federal and State government a total of $36,000.00 on top of that. Now I'm being surcharged $480 a month for 12 months for my Medicare. What are your thoughts?

[@j-9bowl271]

They tax your income over and over again ! Tax when you buy the house, Income tax, property tax, tax on everything you buy, and now when you sell your house! Unbelievable!!

[@Gator777]

There are times when I feel I should have spent every dime I earned and then drawn off of government housing, SNAP, and Medicaid. My health insurance has drained my funds.

[@Luckyduck10]

@@j-9bowl271they are working on taxing our breathing

[@Amy-hs1qe]

I'm in the same situation except it was a house sale, not inheritance, and I paid about $70,000 in federal taxes - my first year of Medicare will be ridiculous. After being angry for a while at the unfairness of it all, I've grudgingly accepted it. It's out of our control, I can't let it eat at me so I've decided to just move forward.

[@squidward66]

Federal pension PLUS social security looks like double dipping to me. I mean, good for you, but wow.

[@BetterYet]

This video is yet another example of how Canadians will lose if they become American.

[@beth3535]

Less the my taxes, agent’s fees, etc.

[@URKlewless]

This isn’t a video on the exact amount you walk away with….she is just explaining a concept…..🙄🙄🙄🙄

[@Dave-sw2dm]

Why do we have to pay for Medicare when it gets deducted from our pay checks all these years?

[@Honestandtruth007]

But the MEDICARE people Always used our income and our Property Values to determine the eligibility....I have SEEN so many people went through

[@silver6054]

Medicaid?

[@morrismonet3554]

@@silver6054 Seems many people don't know the difference. Too lazy to educate themselves.

[@Singlesix6]

@@silver6054 It is Medicaid that looks at property values, not Medicare.

[@leonaowen9234]

@@Singlesix6 How does medicaid look at your home value?

[@silver6054]

@@Singlesix6 Yes, that's what my comment was suggesting!

[@fuzzresponder2225]

Worse case scenario IRMAA its only for one year!

[@EarlGuyton425]

If the woman bought a house for 400k and then sold it for profit only it would be an income of making earnings off of real estate. But any house you purchased in your life that was your primary house, then later sold, cant be treated as earnings. I have noticed over the years that attorneys are making up lies about many things. To liquidate properties in your older years, is not considered earnings with the IRS, nor is anything granted from a last will and testament

[@Jen-ci1mp]

Selling your home not only affects medicare but also State, Federal Taxes and Social Security. TALK TO YOUR TAX PREPARER BEFORE SELLING. Could these costs be contributing to the homeless pop.? I had a sister who lost her home over these costs. Laws today are not the same as in prior years.