From 24/7 Wall St. · David Beren · · 1m 20s
Medicare Surcharge After Retirement
Retired person paid $5,400 extra Medicare premium due to old tax return.
In brief
Retired person paid $5,400 extra Medicare premium due to old tax return. A person who retired in June 2026 was billed $5,400 extra for Medicare Part B premium because Social Security used a 2024 tax return that showed higher income. Originally reported by 24/7 Wall St..
Medicare Premium Surcharge
Medicare can charge retirees a premium surcharge based on a salary they stopped earning months ago.
2024 Tax Return Affects 2026 Bill
Social Security used a 2024 federal tax return to set Medicare premiums for 2026.
Example of Surcharge Impact
A single filer with 2024 salary over $205,000 paid $649.20 monthly Part B premium including $446.30 surcharge.
Surcharge Adds $5,355.60 Annually
The surcharge adds $5,355.60 extra over a year for a single filer with high income.
Social Security Form SSA-44
Beneficiaries can file Form SSA-44 to reduce Medicare premium after retirement.
Retirement Counts as Work Stoppage
Retiring qualifies as a work stoppage under Social Security's life-changing event rules.
Filing Deadline for Savings
Filing by March 31 can apply the premium reduction to the current year.
Late Filing Loses Full Year Savings
A June 2026 retiree who files after 2027 loses the 2026 premium reduction.
Medicare Premium Adjustment
Social Security adjusts Medicare premiums based on income changes after retirement.
The key point
A person who retired in June 2026 was billed $5,400 extra for Medicare Part B premium because Social Security used a 2024 tax return that showed higher income.
