Q. I understand that my Medicare Part B premiums can be higher than the base amount if my modified adjusted gross income is above a certain amount. How is modified adjusted gross income calculated?
A. To calculate your modified adjusted gross income (MAGI) take your adjusted gross income (AGI) and add back certain deductions. Depending on your deductions, it’s possible that your MAGI and your AGI could be the same. Here are the deductions you add back to your AGI in order to come up with your MAGI.
- ½ of self-employment tax
- Passive loss or passive income
- The Section 137 deduction for adoption expenses
- Student loan interest
- IRA contributions
- Rental losses
- Qualified tuition expenses
- Income exclusion from U. S. savings bonds
- Taxable Social Security payments
- Deductions for tuition and fees
- Overall losses from a publicly traded partnership