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Social Security Question
Old 04-24-2006, 11:39 AM   #1
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Social Security Question

I am not old enough for Social Security yet but would like to know that I am knowledgable on the subject when the time comes.

Is it true that even if you don't qualify for Medicare until age 65 that Medicare Tax is taken out of your Social Security check if you start collecting at age 62?

Can someone who is collecting at this early age elaborate? Thanks!
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Re: Social Security Question
Old 04-24-2006, 02:43 PM   #2
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Re: Social Security Question

momtwo - Before I retired, I developed many budget spreadsheets to verify if and when I would be able to retire.* I always included the 1.45% Medicare tax on both my pension and SS just to make sure I was covering every base;* I am now retired for 3 years and am age 63 and collect SS - I do not pay a "Medicare tax" from either my SS or from my defined-benefit pension.* I was pretty pleased that 1.45% Medicare tax was not deducted from these retirement income sources.

Perhaps you are mixing up the Medicare Part B fee with a medicare tax.* When you turn 65 you can sign up for the free Medicare Part A (Hospitalization) and the not-free Part B (office call expenses, etc) and/or Part D (Drug Benefit).* Medicare prefers to take Part B and D costs out of your SS payment, if there is one.* DW is under Medicare Part A and B but does not yet collect SS since she is working part time;* she pays for the Part B by check quarterly, and pays the Medicare 1.45% "tax" on her earned income.

JohnP
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Re: Social Security Question
Old 04-24-2006, 03:10 PM   #3
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Re: Social Security Question

Perhaps the OP is refering to income taxes paid on work derived-income.

or perhaps the OP is referring to Medicare payroll taxes on work-derived income after you collect SS at 62 but continue to work.
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Re: Social Security Question
Old 04-24-2006, 05:40 PM   #4
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Re: Social Security Question

Thank you for everyone's input! Here is the scenario: My BIL just turned 62 and just got his first SS payment last week. They are taking out money for medicare. I think this must be a mistake!
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Re: Social Security Question
Old 04-24-2006, 05:47 PM   #5
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Re: Social Security Question

Is your BIL still working ?
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Re: Social Security Question
Old 04-24-2006, 08:24 PM   #6
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Re: Social Security Question

Quote:
Medicare is financed by a portion of the payroll taxes paid by workers and their employers. It also is financed in part by monthly premiums deducted from Social Security checks.
http://www.ssa.gov/pubs/10043.html#part1
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Re: Social Security Question
Old 04-24-2006, 09:29 PM   #7
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Re: Social Security Question

No my BIL retired 5 years ago. We have determined this is a mistake and he is contacting SSA. Thanks for everyones help!

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