Social Security and Medicare

Theodore J. Sarenski, CPA.PFS, CFP, is chief executive officer and president of Blue Ocean Strategic Capital. As the founding member of Blue Ocean Strategic Capital, he oversees all aspects of the company's operations, including the investment committee's management of portfolio assets. He has written articles for the Journal of Accountancy, the CPA Journal, the Journal of Taxation and the AICPA Wealth Management Insider. Sarenski has lectured at Syracuse University. In addition, he is a featured planner on Syracuse's NBC affiliate, WSTM-3, taking viewers' calls regarding financial planning and investment topics and offering planning concepts to the viewers on the nightly news program.

• Chapter 1 1-1How the Social Security System Operates 1-1FICA tax 1-4Medicare tax 1-6Medicare tax on earned income 1-7Medicare tax on net investment income 1-10Not everyone is covered under Social Security 1-13Summary 1-15Chapter 2 2-1Benefit Eligibility 2-1Summary 2-8Chapter 3 3-1Social Security Retirement Benefits 3-1Retirement benefits 3-3AIME 3-5Calculating the PIA 3-7Reduction in benefits for claiming benefits early 3-11Delaying Social Security retirement benefits 3-14Spousal retirement benefits 3-16Working after retirement 3-23Summary 3-25Chapter 4 4-1Social Security Survivors’ Benefits 4-1No benefits in the month of death 4-3Children’s benefits 4-10Dependent parent’s benefits 4-12Summary 4-13Chapter 5 5-1Disability Income Benefits 5-1Characteristics attributable to disabled-worker beneficiaries 5-3Medical eligibility for Social Security disability income benefits 5-13When SSDI benefits will end 5-20Summary 5-23Appendix A Chapter 5, A-1OASDI and SSI Program Rates & Limits 2019 Chapter 5, A-1Appendix B Chapter 5, B-1OASDI and SSI Program Rates & Limits 2018 Chapter 5, B-1Chapter 6 6-1Taxation of Social Security Benefits 6-1How benefits are reported 6-3Summary 6-10Chapter 7 7-1Medicare 7-1Original Medicare 7-3Medicare premiums and coinsurance rates Medicare Part A 7-7Current Medicare premiums and deductibles 7-8Are the premiums tax-deductible? 7-17Skilled nursing care under Medicare Part A 7-20Home healthcare coverage Under Medicare Part A 7-22Hospice coverage Under Medicare Part A 7-25Medicare Part B coverage 7-27Medicare Part C Advantage plans 7-29Medicare Part D — Prescription drugs 7-31Medicare supplemental (Medigap) insurance 7-34Summary 7-38Chapter 8 8-1The Future of Social Security and Medicare 8-1The system is strained 8-2Fixing the problems 8-9Summary 8-11Appendix A A-1Fact Sheet A-1Index Index 1Solutions Solutions 1Chapter 1 Solutions 1Chapter 2 Solutions 2Chapter 3 Solutions 3Chapter 4 Solutions 4Chapter 5 Solutions 6Chapter 6 Solutions 8Chapter 7 Solutions 9Chapter 8 Solutions 11