She is 79 and selling her house --- first time sale. QUESTION:

[3Hotdogs]

Will the 1 year increase in income jeopardize/affrect her Medicare coverage?

[Raven123]

1. You might want to check this link

https://selzerrealty.com/2024/03/25/what-happens-to-my-medicare-benefits-if-i-sell-my-house/


It is a it complicated. Hope this helps

[1WorldHope]

2. That is new information to me.

[ShepKat]

3. place the proceeds in a needs(?) trust

can't remember what it's specifically called.
It's there if she needs to use it but it won't interfere with services

[Deuxcents]

4. I'll agree.she should have a real estate lawyer to direct her and to make sure she's protected and not scammed

Her for sale contract, proceeds after the sale..those kinds of concerns need a professional

[Silent Type]

5. It won't affect Medicare coverage other than the premium might increase in 2 years if she makes a lot of profit.

https://lawyerforseniors.com/what-happens-to-my-medicare-premium-if-i-sell-my-house-2/

https://www.schwab.com/learn/story/how-higher-income-can-affect-medicare-premiums

[surfered]

6. First, determine the gain on the sale of the house.

Sales proceeds less selling expenses less cost of house and improvements over the years (or step up in basis from death of husband) = gain.

If she’s lived in the house 2 out of the last 5 years, she can exclude up to $250,000 of gain.

Once you’ve determined the net gain and added it to her tax return, you will use Adjusted Gross Income from that return plus any tax exempt income to come to Modified Adjusted Gross Income (MAGI). Here are the Medicare premium brackets for MAGI:

Tier 1: $103,000 – $129,000 (individual) → +$66.90
Tier 2: $129,001 – $161,000 → +$167.80
Tier 3: $161,001 – $193,000 → +$268.50
Tier 4: $193,001 – $500,000 → +$369.10
Tier 5: Over $500,000 → +$419.30

Any premium increase due to increased income lasts for only for two years

[Norrrm]

7. Might a house sale affect someone with Medicare Advantage?

[surfered]

8. Yes, but don't forget the $250,000 exclusion from the sale of a primary residence. $500,000 for a married couple