Social Security and Medicare Part B (and D) Costs
The 2017 Medicare costs have been published by Social Security. Retirees on Medicare should have received a letter from Social Security indicating what you will be paying for Medicare in 2017 based on your 2015 income. The chart below indicates those ‘premiums.’ If you are only paying the base amount – there is no Part D cost. However, if your income level exceeds the base amount – you will be paying a Part D premium. Remember, if you are getting “State Paid” health benefits in retirement, you will be able to apply for reimbursement for the Part B excess premium as well as the Part D premium. Those letters are normally mailed out from the Division of Pensions in February.
| SOCIAL SECURITY – 2017 | ||
| Maximum Taxable Earnings | 2015/16 | 2017 |
| Social Security (Only) | $118,500 | $127,200 |
| Medicare | No limit | No limit |
| Retirement Earnings Test Amounts | ||
| Under Full Retirement Age (FRA) | $15,720/ Year | $16,920/ Year |
| $1,310/ month | $1,410/ month | |
| No limit Upon Attainment of Full Retirement Age (FRA) | ||
| MEDICARE COSTS – 2017
(part b deductible $183) PART B AND D HIGHER INCOME MONTHLY PREMIUMS |
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| If Yearly Income in 2015 | |||
| File Individual Tax return | File Joint Tax Return | You Pay Part B | You Pay Part D |
| $85K or less | $170K or less | $134 | |
| $85K – $107K | $170K – $214K | $187.50 | $13.30 |
| $107K – $160K | $214K – $320K | $267.90 | $34.20 |
| $160K – $214K | $320K – $428K | $348.30 | $55.20 |
| $214K and above | $428K – and above | $428.60 | $76.20 |
Retire Dental Premiums – Through the SHBP
| NJ SEHBP RETIREE DENTAL PLAN RATES – 2017 | ||||
| PLAN | Single | Member & Spouse/Partner | Family | Parent & Child |
| DEP
Dental Expense Plan – AETNA |
$38.89 | $76.73 | $99.98 | $57.82 |
| DPO/CIGNA | $24.38 | $46.52 | $83.51 | $74.09 |
| DPO/HEALTHPLEX | $8.78 | $15.27 | $24.95 | $18.49 |
| DPO/HORIZON DENTAL CHOICE | $19.14 | $33.28 | $54.43 | $40.31 |
| DPO/AETNA | $21.71 | $37.78 | $61.80 | $45.80 |
| DPO/METLIFE | $14.97 | $25.37 | $40.95 | $30.55 |
State Income Tax Exemption (From Increase in Gas Tax)
On November 1, 2016 the NJ State Gas Tax increased 23 cents/gallon. Part of the tax breaks that were also signed into law dealt with a reduction of State Income Tax for retiree’s on your “Retirement Income. First – your Gross income must be less than $100,000 in order to take the exemption. If you meet that threshold, then your ‘retirement income’ will be exempt as follows:
| Filer Type | Present | 2017 | 2018 | 2019 | 2020 |
| Joint | $20,000 | $40,000 | $60,000 | $80,000 | $100,000 |
| Individual | $15,000 | $30,000 | $45,000 | $60,000 | $75,000 |
| Separate | $10,000 | $20,000 | $30,000 | $40,000 | $50,000 |