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Originally Posted by Rama khatri
#1; i want to know that the mediclaim received by government employee is taxable or taxfree?
#2;if it is taxable then is it applicable for all type of diseases and for any amount? |
#1; Federal employees of the government can automatically receive free Medicare Part A when they turn 65. Part A typically covers the cost of inpatient hospital visits and lab costs. Medicare is made up of two main parts: Part A, which covers hospitalizations, and Part B, which covers medical expenses, such as visits to your doctor. For the most part, Medicare benefits are not taxable, although they are under some circumstances. If your MAGI , as single, under $25K annually, you will not owe any taxes to the federal government. So are Medicare benefits taxable? The answer to this is usually not, unless you make an amount that is considered high enough that you can afford taxes.
#2;it depends. Generally, Medicare benefits received from Medicare Part A, Part B and Part D are not included in a beneficiary’s income and are therefore not considered taxable. However, if a Medicare beneficiary’s total income exceeds a certain level, the federal government may consider a percentage of the Medicare benefits taxable. If you are filing a joint return, the IRS has you calculate the combined income of both you and your spouse, magi , I mean, . The income brackets for figuring taxes on Social Security benefits run a bit higher. As of 2011, less than $34K in combined income means no tax on your benefits; between $32K and $44K means half of your benefits are taxable; and above $44k means 85 percent of the benefits are taxable.