Beware of The HUGE Medicare Penalty for Selling Your Home After 63

[Jacson6]

[Ocelot II]

1. It's easier to look it up than watch a video.

The short answer is that your medicare premiums might increase if you fall into the "high earner" category. Medicare considers you a high earner if your modified adjusted gross income (MAGI) exceeds $97,000 per year if you file your taxes as a single, or $194,000 for married couples filing jointly. If you sell your house any capital gain up to $250,000 doesn't count.

[eppur_se_muova]

4. Thanks. A video is worth ... 62 words ?

This is why I seldom play videos.

[PoindexterOglethorpe]

2. It is so nice to be relatively poor.

I'm getting ready to sell the little place I've lived in the past 15 years, and while there will be some capital gains, it will be significantly less than that.

And honestly, if you make enough on the sale of your residence that you have capital gains and a temporarily higher Medicare premium, it's still new money, money you didn't have before the sale. I mean, really. Complain because you made money.

[NewHendoLib]

3. See this

Do I have to report the home sale on my tax return?
You generally only need to record your home sale on your tax return if you turned a profit of $250,000 or more as a single filer or $500,000 or more as a joint filer. In that case, you will likely be eligible to exclude the first $250,000 or $500,000 of profit and record the remaining amount on your tax return.