Medicare refund

Hi, Chris.

What's a "medicare refund"?

Like most every other American worker, I paid into Medicare for decades. Like other older Americans, many of my medical bills are now paid by Medicare. But Medicare sends those payments directly to the doctors, hospitals or other providers, not to me.

Is this a refund of some of the premium you paid or overpaid - by mistake, maybe? Or is it a refund from your doctor because Medicare paid a bill that you had already paid him? Or what?

Remember the 2-step process: Step 1: Understand what happened in the real world. Step 2: Record that in Quicken.

Please don't ask us about Step 2 until you tell us about Step 1. We'll probably give you the wrong answer every time. :>(

RC

RC, I think you mean that you paid into Social Security for decades. One does not pay for Medicare until one turns 65.

There are some doctors that accept Medicare but do not accept assignment. My husband's internist is one. My husband pays him after the visit and the doctor sends the forms to Medicare. We then receive reimbursement from Medicare and from our supplemental insurer.

Caryl

Caryl, when I worked I paid a Medicare Tax. I assume you can't claim the medicare payment you made to your doctor until you net it by applying what Medicare reimburses you from the doctor payment.

OK sorry, Hope this explains my question. When we go to the doctors I pay full doctors account. Then the Aust Government pay me back part of the Doctors bill. Tax wise is not really the problem I wish to work out but how to tell Quicken Ver 6.5 that money has been placed into my account but is not a income Sorry for the confusion and Thanks again Chris

Hi, Caryl.

Social Security was enacted the month after I was born in 1935, so I've paid into it all my working life. Medicare was enacted in 1964 and I paid my "Part A" premiums into that until I retired in about 1990. And now, Part B premiums are deducted from my monthly retirement benefit checks. So, yes, I've definitely paid into Medicare for decades.

For the first few decades, Social Security (OASDI: Old Age, Survivors and Disability Insurance) was deducted from my paychecks, thanks to the FICA (Federal Insurance Contributions Act). After 1964, that included the Medicare premium.

In 1968, I became a partner, which means self-employed. I no longer had an employer to withhold my FICA contributions, match them, and send both halves to the IRS. So I had to begin including those taxes - both the employee's share and the employer's matching contributions - in my quarterly payments of federal income taxes.

And I hope that you recognize that you also must include Social Security and Medicare amounts in your quarterly payments for self-employment taxes on your freelancing income.

I still don't know what a "Medicare refund" is. As I asked Chris Taylor, the OP, in my earlier post:

maybe? Or is it a refund from your doctor because Medicare paid a bill that you had already paid him? Or what?

"How to handle it in Quicken?" can't be answered until we know "what it is".

RC

Actually, the Medicare deduction is separate from the FICA deduction. Any payroll stub or W2 form I have looked at always lists separate line entries for FICA and Medicare. Social Security Tax Withheld is line 4, and Medicare Tax Withheld is line 6, on the official W2 forms.

My current pay stub does not list medicare separately; it's included in the FICA deduction.

Every paycheck stub is formated differently. Those produced by QuickBooks Payroll service shows Medicare and Social security withholdings separately.

Absolutely. Just the point of my post.

Earlier in my employment (with the same employer), my pay stubs DID show the medicare deduction separately.

The reason I posted was to suggest that some folks may be unaware that they are paying medicare deductions since the deduction can be included with the FICA deduction ... so there is good reason why some might be unaware of the medicare deduction.

Valid point. Many people are unaware of the taxes withheld from their paycheck.

I think it is much simpler than "receivables". Any such money you pay or receive is simply category "Medical Expense".

Situation A: You go to one doctor, and his bill is $100, and he charges you $20 for copay, and he gets the other $80 from Medicare. You had a $20 medical expense, which is recorded in Quicken.

Situation B: You go to another doctor, and his bill is $100, but he does not accept Medicare. So you pay $100, which is a medical expense, $100 out of your pocket, in Quicken on the check that you wrote. But he must submit it for you, and then Medicare sends you $80. (OK, I know he probably charges $120, and Medicare only pays 80% of their covered $100 charge. Point is the same, but the numbers may vary a little). The $100 is category "Medical Expense", and the $80 is credited to (subtracts from) "Medical Expense.

So the summary of both situations show a $20 medical expense in Quicken.