Ask Larry

Does Medicare Owe Me An Overpayment Since I'm Paying Medicare Taxes From My Earnings And I'm Already Paying Medicare Out Of My Benefits?

I've retired at 65
I'm 70 now and continue to work full time.do I still have to pay into Social Security if I continue to work from my salary when I'm already paying Medicare out of my Social Security .
Does Medicare owe me an overpayment from accepting Medicare from my employers since I've retired and they are receiving payments from my pay from my salary?

Hi. No. As long as you perform work where the earnings are subject to Social Security and/or Medicare taxes, you must continue to pay those taxes regardless of your age and even if you're already collecting Social Security benefits and have Medicare coverage.

The Medicare taxes that are collected from wages and self-employment earnings pay for Part A of Medicare (i.e. inpatient hospital coverage). That's why you don't have Part A Medicare premiums deducted from your Social Security benefits. The Medicare premiums deducted from Social Security benefits pay for Part B (i.e. outpatient coverage) and/or Part D (i.e. prescription drug coverage) of Medicare. So, no, the fact that you're paying Medicare taxes and Medicare premiums doesn't mean that you're due a refund.

Best, Jerry

Category: 
Posted: 
Nov 6 2022 - 11:35am
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.