She is 79 and selling her house --- first time sale. QUESTION:
Will the 1 year increase in income jeopardize/affrect her Medicare coverage?

Raven123
(6,781 posts)It is a it complicated. Hope this helps
1WorldHope
(1,333 posts)ShepKat
(481 posts)can't remember what it's specifically called.
It's there if she needs to use it but it won't interfere with services
Deuxcents
(22,779 posts)Her for sale contract, proceeds after the sale..those kinds of concerns need a professional
Silent Type
(10,100 posts)surfered
(7,448 posts)Sales proceeds less selling expenses less cost of house and improvements over the years (or step up in basis from death of husband) = gain.
If shes lived in the house 2 out of the last 5 years, she can exclude up to $250,000 of gain.
Once youve determined the net gain and added it to her tax return, you will use Adjusted Gross Income from that return plus any tax exempt income to come to Modified Adjusted Gross Income (MAGI). Here are the Medicare premium brackets for MAGI:
Tier 1: $103,000 $129,000 (individual) → +$66.90
Tier 2: $129,001 $161,000 → +$167.80
Tier 3: $161,001 $193,000 → +$268.50
Tier 4: $193,001 $500,000 → +$369.10
Tier 5: Over $500,000 → +$419.30
Any premium increase due to increased income lasts for only for two years