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Tax Cuts in 2023: 6 Surprising Ways It Affects Retirees

November 25, 2022 · Personal Finance
Tax Cut
Photo by Vitalii Vodolazskyi at Shutterstock

The standard Medicare Part B premium annual deductible will be reduced

The standard Medicare Part B premium climbed from 14.5% to $170.10 each month in 2022. And the annual Part B deductible rose 14.8% to 233 dollars. Those expenditure hikes surpassed the 5.9% Social Security COLA this term.

This means that benefits lost their buying power because of the rising cost of Medicare. Fortunately, the standard Medicare Part B premium will get a tax cut by 3% to $164.90 each month in 2023. And the deductible will drop by 3% to $226 per year.

That translates to most retired workers saving around $70 on Medicare in the coming year. Now we realize that this isn’t much. But the combination of a momentous COLA and reduced Part B premiums might just be a once-in-a-lifetime event!

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