Near Intersection of I-35 & I-90 Southern Mn. | RickB - 3/8/2019 19:56
I would say that if you had a similar amount of investment income that was taxable rather than tax free the effects you document would still be present AND you would have taxes due on the investment income to pay as well.
And if the taxable income had a higher effective gain (as would be expected) the net effects to the SSI and Medicare calculations would be even higher.
Yes, what you say is true. There would be extra tax due to the increased taxable income. The extra earnings of tax versus tax free would have to be sufficient to offset that.
The extra gain might put one in a different category for the "surcharge" on the Medicare. So maybe the tax-free versus taxable investment is still a good plan. The purpose of my post was to make others who might be in a similar situation aware of the possibilities.
Edited by tedbear 3/9/2019 11:08
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Tax ramifications with "tax-free" income
