2012 Social Security Cost-of-living Adjustment
The 2012 cost of living adjustment to the Social Security wage base is increased from $106,800 to $110,100. The Medicare tax is generally assessed on all wages. Currently, the combined tax rate is 7.65% (the Social Security portion is 6.2% on wages up to the applicable maximum taxable amount; the Medicare portion is 1.45% on all wages). SSA Fact Sheet of 2012 Social Security Cost-of-Living Adjustments.
2012 Medicare Parts A and B: Premium and Deductible Rates
2012 | Part A |
Premium | No monthly Part A premium for those with 40+ quarters of Medicare-covered employment. $248 per month for those having 30-39 quarters of Medicare-covered employment. $451 per month for people who are not otherwise eligible for premium-free hospital insurance and <30 quarters of Medicare-covered employment. |
Deductible | $1,156 for first 60 days of inpatient care; Additional $289 per day for days 61 through 90; Additional $578 per day beyond the 90th day. |
Part B Premium and Deductible
For 2012, the standard Medicare Part B monthly premium will be $99.90; the Part B deductible will be $140.
High-income Surcharge
The CMS news release (link below) includes:
- The schedule for Medicare Part B premium adjustments, based on income and tax filing status.
- The schedule of income-related monthly adjustment amounts to be paid by Part D beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at any time during the taxable year.
Source: CMS’ News Release: Medicare Premium and Deductible Rates for 2012.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.