From a reader:

Subject: Social Security & Medicare - 2008 & Beyond

Thanks for the SS information for 2008 as well as 2008 tax rates & info.

Here are the new monthly Medicare premiums for 2008 based on 2006 MAGI:


2008 Medicare Premiums based on MAGI for 2006 [AGI + TAX EXEMPT INTEREST].


You Pay If Your Yearly Income* is
Single
$96.40 MAGI=$82,000 or less
$122.20 MAGI= $82,001-$102,000
$160.90 MAGI=$102,001-$153,000
$199.70 MAGI=$153,001-$205,000
$238.40 MAGI-Above $205,000

Married Couple
$96.40 MAGI=$164,000 or less
$122.20 MAGI=$164,001-$204,000
$160.90 MAGI=$204,001-$306,000
$199.70 MAGI=$306,001-$410,000
$238.40 MAGI=Above $410,000

*[Modified Adjusted Gross Income (Includes Tax-Exempt Interest)]

In 2006, I was able to save a friend from jumping into a higher premium bracket by about $500 with a few end-of-year minor investment transactions.

Your predictions about what will happen to SS benefits for upper bracket payers is likely spot on. Favorable treatment of dividends & capital gains is likely to end also.

I've started a "Doomsday" folder as the assault on the evil rich "if the two-headed president" [or others so inclined] is elected. My ultimate doomsday strategy? All munis all the time.

Speaking of munis there is a vital tax case [Kentucky v. Davis] that will be heard before the U.S. Supreme Court on November 5, 2007
[http://legaltimes.typepad.com/blt/2007/10/municipal-bonds.html].

Thanks for that additional info on the 2008 means tested Medicare premiums.

That is also a very interesting case you referenced, on the ability of State tax agencies to give tax free status to only interest from in-state muni bonds. I wasn't aware of it. That has been a logistical problem for taxpayers who move between states, and whose holdings change from tax free to taxable status as a result. I wonder if a positive (for taxpayers) finding in this case will result in a lot of amended State income tax returns.

Thanks again for sharing that.

Kerry

Labels: MediCare

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 10/25/2007 11:48:00 AM Send this post: