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How and When Do You Initially Enroll in Medicare?
Aug 10, 2021
If you're like most people, you expect that Medicare will provide for your healthcare needs at some point in the future. But also like most people, you might not feel familiar with all the rules and regulations that go along with the program. When exactly do you enroll in Medicare? And how? Here's what you need to know.
Most people enroll in Medicare when they turn 65.
You become eligible for Medicare when you turn 65. Your enrollment window begins three months before the month of your birthday, lasts throughout that month, and then extends for three months afterward. It's best to get an early start, if you can, because you'll face several big decisions regarding your enrollment.
In general, you're required to enroll in Medicare at this time, or else you could face a penalty in the form of higher premiums later. But there are some exceptions to this rule. If you or your spouse are still working, and you're covered by an employer's healthcare plan, you might be able to delay enrollment in Medicare. Or, you might opt for dual enrollment, allowing Medicare to serve as a supplementary plan. To learn more about the specific rules regarding this exception, talk to your human resources department at work or contact an insurance agent who specializes in Medicare.
There are two ways to enroll.
If you've already claimed your Social Security benefits, you will be automatically enrolled in Original Medicare upon your 65th birthday. But if you want to enroll in a different Medicare plan or opt for supplemental coverage, you need to consult with an insurance specialist.
If you haven't already claimed your Social Security benefits, then you need to enroll in Medicare yourself. You can do this by visiting the Medicare website, or by discussing your options with an insurance agent.
Give us a call when it's time to compare your options, and we'll be happy to help.
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Receiving a notice from the IRS for an audit can be a nerve-wracking experience. The time, effort, and potential financial consequences make it a situation you'd rather avoid. Fortunately, many audits stem from avoidable errors. Here's how you can avoid the five most common audit triggers and keep your tax returns in the clear. Ensure You Report All Income Income discrepancies are a major red flag for the IRS. While taxes are typically withheld from regular wages, other sources of income, like business earnings or capital gains, may not have taxes automatically deducted. Be vigilant in accurately reporting all sources of income, whether you receive a 1099 form or not. Document and report any non-wage income meticulously to prevent underreporting. Explain Significant Income Fluctuations Significant fluctuations in income from year to year can draw the IRS's attention. If your income varies widely, provide explanations or notes with your tax filings. Whether it's due to changes in business circumstances or other factors, clarifying these fluctuations can help prevent misunderstandings. Document Business Losses Carefully While it's common for businesses to experience losses, chronic or substantial losses can raise eyebrows at the IRS. Keep detailed records of your business finances, especially in the early years. Additionally, if you operate a sole proprietorship, ensure your business activities are distinguishable from hobbies to justify loss deductions. Support Your Deductions Certain deductions, such as large charitable contributions or home office expenses, may attract scrutiny. Be prepared to provide supporting documentation for all deductions claimed on your tax return. Thorough records can help substantiate your deductions and alleviate concerns during an audit. Accurately Value Assets For estate tax returns, undervalued assets are a common trigger for audits. When valuing assets without a public market price, seek multiple appraisals from qualified professionals. Having multiple valuations can strengthen your position and minimize the risk of an audit. Remember, even if you enlist professional help for your taxes, the responsibility for accuracy ultimately lies with you. Review your tax returns carefully before signing them to ensure everything is in order. Understanding the Different Types of Audits IRS audits come in three main varieties, each with its own level of intensity. Correspondence Audit. Conducted through the mail, this audit is often triggered by missing information or minor discrepancies. Office Audit. Requires a visit to an IRS office, typically for more complex tax returns or multiple disputed items. Field Audit. The most comprehensive type, conducted in person at your home or business, involves a thorough examination of your return. Regardless of the type, the IRS will provide a written request for specific documents beforehand. By being proactive and thorough in your tax reporting, you can minimize the risk of an audit and ensure a smoother process if one does occur.
