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“Dupes,” short for duplicates, was popularized as a broad consumer trend by social media platform TikTok.
Travelers adopted the strategy of seeking out cheaper alternatives in 2023 as prices soared, and will continue to do so in 2024, experts said.
It’s not always about flight price. In many cases, travelers can also save on hotels, food and local transportation, too, experts said.

Klaus Vedfelt | Digitalvision | Getty Images

Flight searches for travel ‘dupes’ increased in 2023

Dupe is, of course, a new term that puts a spin on the old concept of bargain hunting.
Data shows that travelers leveraged the strategy more in 2023. For example, flight searches more than doubled for several “dupe” destinations internationally, according to Expedia data.
Searches to Taipei, a dupe for Seoul, were up 458% in the U.S. and 2,786% globally, according to Expedia. Those to Pattaya, Thailand, an alternative to Bangkok, rose 163% in the U.S. and 249% globally.

Likewise, flight searches to the island Curaçao, a stand-in for St. Martin, were up 228% in the U.S. and 185% worldwide. Those to Perth, Australia, a dupe for Sydney, jumped 33% in the U.S. and 109% globally. Additionally, those to Liverpool, England, a London alternative, spiked 138% in the U.S. and 97% worldwide, according to Expedia.
The data compared searches in the 12-month period through Aug. 31, 2023, to the same period the prior year.
“TikTok popularized the idea of dupes … and the concept is increasingly taking off in the world of travel,” Expedia said in a report published Wednesday.

Affordability is a top driver of travel dupes

Coroimage | Moment | Getty Images

Affordability is among the top reasons cited by consumers for seeking out these alternate destinations, Expedia said.
“If you are looking to save money on your next trip, consider an alternate destination,” said Hayley Berg, lead economist at Hopper, a travel app. “Oftentimes you can save on airfare and hotel rates by picking a destination off the beaten track.”
For example, the average round-trip flight from the U.S. to Hanoi, Vietnam, is $1,564. Travelers would save money by flying instead to Ho Chi Minh City, where a flight averages $1,326, Hopper said.
In a similar vein, let’s say you’re considering a trip to Spain.
A round-trip flight to Tenerife, in Spain’s Canary Islands, costs $827, on average. Instead, you might consider a trip to Barcelona, a popular metropolis, where a flight costs an average $572, according to Hopper. Likewise, flights to Phuket, Thailand, an island getaway, cost $1,705 round trip, while flights to the capital Bangkok cost $1,404. The Hopper prices are current averages for departures in December to March.

In 2024, Americans are more likely to choose hidden-gem destinations over tried-and-true tourist hotspots for their vacations.

Jon Gieselman
president of Expedia Brands

More Americans planned trips abroad this year as their pandemic-era health fears waned and countries largely reopened their borders to visitors. Americans applied for passports in record numbers in 2022 and 2023.
That surging demand caused prices to surge across the travel spectrum. Airfare to Europe, the most popular destination for U.S. tourists, was the most expensive on record in summer 2023.  
Internet search traffic in the U.S. for travel dupes spiked throughout 2023, peaking in July, according to Google Trends data.

It’s more than just the flight price

However, Hopper flight data indicates that not all dupes will necessarily pay off for travelers. They may need to try a few different alternatives to find savings.
For example, the average round-trip flight from the U.S. to Perth, the aforementioned dupe for Sydney, currently costs $2,389, while a flight to Sydney costs $1,572, according to Hopper. However, travelers who look a bit farther afield — to Nadi, Fiji, or Auckland, New Zealand — would spend $1,365 and $1,394, respectively, Hopper said.
However, dupes aren’t just about the airfare. People traveling off the beaten track can often save on food, hotels and local transportation, said Sara Rathner, travel expert at NerdWallet.

Avoiding “way over-touristed” locales, especially if traveling during peak season, can also be a more enjoyable experience due to smaller crowds, Rathner said.
When picking a “dupe” destination, travelers should research details such as amenities, infrastructure and safety considerations, Rathner added. Reading online travel articles and blogs, and asking friends who may have visited before, can give a general sense as to potential itineraries and the ease of lodging and getting around, she said.
To save money on general travel, try being flexible with trip dates, Berg said. For example, flying on a Tuesday can save you $100 on domestic airfare, while departing Monday through Wednesday can save up to $150 per international ticket, Berg said.
Hotel stays are most expensive Friday and Saturday night. Starting a stay on Sunday can save an average of 25% off weekend rates, she added.Don’t miss these stories from CNBC PRO: More

The average credit card balance is now more than $6,000, the highest in 10 years, a new report by TransUnion found.
Total credit card debt also reached a $1.08 trillion record in the latest quarter, the Federal Reserve Bank of New York reported Tuesday.
Amid persistent inflation, consumers are struggling to afford their everyday expenses, TransUnion’s Charlie Wise says. “They’re trying to keep the house of cards from collapsing.”

Persistent inflation has put many households under financial pressure — more cardholders are carrying debt from month to month or falling behind on payments.
Credit card delinquency rates rose across the board, the New York Fed and TransUnion found.
“These are consumers who are struggling to afford their everyday expenses,” said Charlie Wise, senior vice president of global research and consulting at TransUnion. “They’re trying to keep the house of cards from collapsing.”

“Not only are balances higher but the cost of debt service on those cards is significantly higher,” Wise said.

Credit card rates spiked more than 5% with the Federal Reserve’s recent string of 11 rate hikes, including four in 2023.
Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit.
More from Personal Finance:62% of Americans live paycheck to paycheckWhy working longer is a bad retirement planCredit scores hit all-time high even as overall debt rises
The average annual percentage rate is now more than 20% — also an all-time high.
At more than 20%, if you made minimum payments toward this average credit card balance, it would take you more than 17 years to pay off the debt and cost you more than $9,063 in interest, Bankrate calculated.
“Basically, for every person who’s using credit cards for convenience and to earn cash back and travel rewards without paying interest, there’s someone else who’s carrying a very expensive balance,” said Greg McBride, chief financial analyst at Bankrate.

Americans are addicted to credit cards, no question.

Howard Dvorkin
chairman of Debt.com

Still, consumers often turn to credit cards, in part because they are more accessible than other types of loans.
“Americans are addicted to credit cards, no question,” said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.
Overall, an additional 20.5 million new credit accounts were opened in the latest quarter, boosted in part by consumers looking for additional liquidity, Wise said. The tally of total credit cards hit a record near 538 million, TransUnion also found.

How to tackle costly credit card debt

“My top tip for paying down credit card debt is to sign up for a 0% balance transfer card,” McBride said.
Cards offering 12, 15 or even 21 months with no interest on transferred balances are out there, he added, and “these allow you to move your high-cost debt over to a new card that won’t charge interest for up to 21 months, in some cases.”
Borrowers may also be able to refinance into a lower-interest personal loan. Those rates have climbed recently, as well, but at 11.5%, on average, are still well below what you currently have on your credit card.
Otherwise, ask your card issuer for a lower annual percentage rate. In fact, 76% of people who asked for a lower interest rate on their credit card in the past year got one, according to a LendingTree report.
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Global sales for lab-grown diamonds increased to $12 billion in 2022, up 38% year over year, per an analysis by New York-based Paul Zimnisky, a diamond industry analyst.
Jewelry shoppers increasingly have opted for these machine-made gems over mined diamonds because they are visibly and chemically identical — but cost far less. 
However, as lab diamond prices continue to fall, their value will not hold up as well long term as a natural diamond.

Tom Werner | Digitalvision | Getty Images

If your partner got down on one knee and asked you to marry them today, would you say yes? What if you found out the ring destined for your finger boasts a lab-grown diamond?
The chances of that engagement ring bearing a man-made diamond are higher than you might think. 

Global sales for lab-grown diamonds increased to $12 billion in 2022, up 38% year over year, per an analysis by New York-based Paul Zimnisky, a financial and diamond industry analyst.
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Ring shoppers have opted for these gems — created by subjecting pure carbon to extremely high heat and pressurization by machine — over mined diamonds because they are visibly and chemically identical but cost way less. 
The catch? They don’t increase in value at all.
“It’s very difficult to resell a lab diamond, and as the price gets lower, I don’t think there’s going to be a resale market for lab diamonds,” Zimnisky said.

As the so-called engagement season — or the time between Thanksgiving and Valentine’s Day, according to wedding site The Knot — approaches, consumers on the market for diamonds should look at a few considerations on what sort of jewels to invest in.

Diamonds ‘a winner during the pandemic’

Consumers may have gotten federal stimulus money back in 2020 during the Covid-19 pandemic, but some “experiential luxury” such as travel and dining was still restricted due to lockdowns and other regulations. Americans instead redirected their discretionary spending to hard luxury goods such as diamonds.
“Diamonds were kind of a winner during the pandemic,” Zimnisky said.

But the Covid-19 pandemic soon presented a separate challenge: a sharp decline in dating, leading to a drop in engagements.
Engagements typically occur within three years of a first date, per Signet Jewelers, the largest diamond conglomerate in the U.S. and parent company of retailers Kay Jewelers and Zales.
As fewer couples went out on dates in 2020, fewer got engaged in the last two years.
However, the company expects engagements to rebound in the coming years.

The rise of lab-grown diamonds

Meanwhile, the industry of lab-grown diamonds is “growing so rapidly that I would currently describe the market as a bubble,” Zimnisky said.
The man-made diamond market is forecast to reach $18 billion in total value by 2024 as both the overall industry and supply volumes continue to grow. But as prices for man-made diamonds begin to decline, the industry is going to attract a different consumer.
“There’s a lot of consumers that would love to buy diamond jewelry but maybe cannot afford it at $1,000 price points but can afford it at $100 price points,” Zimnisky said.
If the industry starts to get oversaturated, man-made diamonds might come to be considered “costume jewelry” in the future, said Benjamin Khordipour, manager of Estate Diamond Jewelry in New York.

‘People don’t buy them because they’re cheap’

Cavan Images | Cavan | Getty Images

Traditional mined diamonds are not a practical purchase, Zimnisky added.
“People don’t buy them because they’re cheap; they buy them because it makes them feel good, it’s an emotional purchase, a financial sacrifice,” he said.
If you opt for a lab-grown diamond, go into the store with the expectation that it — unlike a mined diamond — probably won’t have any resale value.
“I know most consumers aren’t thinking about that when they’re getting an engagement ring, but that’s just the big takeaway,” Zimnisky said.

On the other hand, if you’re planning on investing in a natural diamond, be very realistic with your budget, Khordipour said. Come to a realistic price point you can afford with your lifestyle.
While financing options such as wedding loans exist, it may be in your best interest to avoid going into heavy debt for a ring, he said.
If you don’t have enough savings for the ideal ring, adjust to something smaller and upgrade to a grander gesture in 10 years, Khordipour suggested.
In the end, make sure you have the discussion with your loved one and come to an agreement that makes the most sense for your preferences and financial goals.Don’t miss these stories from CNBC PRO: More

Social Security’s funds are projected to run out in the next decade, at which point 80% of benefits will be payable.
Acting now may prevent more dramatic changes later, a new report finds.

Richard Stephen | Istock | Getty Images

The clock is ticking for Congress to shore up Social Security benefits.
The latest projections from Social Security’s actuaries show the program’s trust funds are due to run out in 2034, at which point 80% of benefits will be payable.

If Congress does not act by 2034, the program may be faced with an automatic 20% benefit cut for current beneficiaries, the need to increase Social Security taxes by 25% or a combination of benefit cuts and tax increases, according to a new report from the American Academy of Actuaries.
The program has been here before.
In 1983, Social Security’s trust funds were also close to depletion when a host of changes were passed by Congress.
But there were some advantages then that may not be available now. For example, there was more time for benefit changes, such as an increase to the retirement age, to be gradually phased in.
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Moreover, the cash shortfall was just 1% of taxable payroll. Today, it is three times as large, or 3.12% of taxable earnings, according to the American Academy of Actuaries.
Addressing the problem sooner rather than later can help in several key ways, according to the member professional organization.
Early action would make it less likely a 25% payroll tax increase would be needed in 2034.
Moreover, benefit cuts may also be smaller.
Making adjustments now would also give current and future beneficiaries a better idea of what to expect.
“The sooner you can have Congress come together and come up with some options to address these challenges, the better it is for the American people,” said Linda K. Stone, senior pension fellow at the American Academy of Actuaries.

“There’ll be more time for individuals to understand what’s happening and adjust their own financial plan,” she said.
While polls show the program’s shortfall has prompted worries that Social Security benefits will dry up, the agency recently moved to quash those fears.
“It’s a long way from not having any money to pay for any benefits,” Security Administration Chief Actuary Stephen Goss said of the program’s funding in a recent agency interview.
“So, people should not worry about the trust fund running out of money, as is sometimes said, and having an inability to pay any benefits,” he said.
Lawmakers may be able to select from the following menu of changes to shore up the 2034 shortfall, according to the American Academy of Actuaries’ report.

Tax increases

1. Eliminate the taxable maximum so all earnings are taxed. Currently, earnings up to $160,200 are taxed for Social Security. Eliminating that cap could make it so high earners pay more into the program. Because this change would cover just 78% of the 2034 shortfall, other changes would be needed according to the American Academy of Actuaries.
2. Tax all earnings above $400,000 or make 90% of all earnings subject to the payroll tax. These two changes may cover 55% and 36% of the shortfall, respectively, according to the report.
3. Increase the payroll tax rate by 25%. By raising the Social Security payroll tax rate to 7.75% from 6.2% for both workers and employees, that may result in enough to pay 100% of benefits in 2034. However, that may not be enough to cover all benefits in subsequent years. Moreover, the higher tax rate may be burdensome for low-income workers.
4. Tax investment income, estates, gifts and earnings such as carried interest. These areas have never been taxed for Social Security, which may prompt resistance, the report notes. While the changes may be implemented gradually, they would need to start sooner to eliminate the 2034 shortfall, the report notes.

Benefit cuts

1. Reduce benefits for high-income individuals who have not yet claimed. Lawmakers may approach this in multiple ways. People at the high end of the benefit formula may have their replacement rate reduced to 5% from 15% over five years. People above a median income could have their replacement rate reduced to 10% from 32%. Additionally, they may opt to limit the growth of the initial benefit for people at the taxable maximum, or $160,200. Or, a means test could eliminate benefits for people with high incomes or assets. These proposals would have varying impacts on the 2034 shortfall.
2. Gradually raise the full retirement age. The full retirement age is the point at which beneficiaries are eligible for 100% of the benefits they’ve earned. That age is moving up to 67, based on changes enacted in 1983. To reflect longer life spans and careers, lawmakers may consider pushing that age higher. That may include raising the age by about one month every two years or by two months per year for 12 years. Those changes may affect 3% to 10% of the 2034 shortfall, respectively, if implemented soon. Importantly, those policies may be paired with offsets to protect those with low incomes who may have shorter life spans and may not be able to work as long.
3. Reduce the annual cost-of-living adjustment. The measurement for Social Security’s annual cost-of-living adjustment may be changed to the chained consumer price index, which would reduce benefit increases by about 0.3 percentage points each year. That change would cover 13% of the 2034 shortfall, according to the American Academy of Actuaries. In comparison, another proposal to change the COLA measure to the consumer price index for the elderly, or CPI-E, would increase the annual benefit adjustments by 0.2 percentage points on average. Meanwhile, costs would increase by about 8% of the 2034 shortfall with that change, the report found.
Other changes may also be implemented, yet may not impact the 2034 shortfall, the report found.
Moreover, addressing the shortfall for that 2034 date may not fix the program forever, the report notes.
Earlier this year, the American Academy of Actuaries launched a tool to let consumers decide which combination of changes they would choose to shore up Social Security’s finances. More

Parents who took out federal loans on behalf of their children are ineligible for the Biden administration’s new student loan relief measures, including the Saving on a Valuable Education repayment plan.
Thanks to a “super-secret double consolidation method,” there is a way for parent PLUS borrowers to access SAVE.
However, borrowers who want to pursue this option must act quickly. The U.S. Department of Education is expected to close this loophole by July 2025.

Once families hit their federal student loan limits, they often turn to federal Parent PLUS loans to secure the financing they need to send their children off to college.
As college costs rose, so have student loan balances, plus the share of debt owed not just by graduates, but their parents, as well.

Parent PLUS loans account for $111 billion

The share of parents taking out Parent PLUS loans to help cover the costs of their children’s college education has increased steadily over time, research shows, almost quadrupling over the past two decades, according to Kantrowitz.
Currently, 3.7 million parents have $111.3 billion in Parent PLUS loans outstanding. The average parent PLUS loan is roughly $30,000.
Parent PLUS loans also come with an interest rate of more than 8%, compared with 5.5% for undergraduate student loans.

There could be help for parents after all

The only option for parent borrowers outside of the standard, graduated and extended repayment plans is a “special limited window of opportunity” to consolidate Parent PLUS loans into direct consolidation loans, making them eligible for income-driven repayment plans, Chany said. However, this process “is complicated.”
The Institute of Student Loan Advisors provides step-by-step guidance on this loophole — referred to as the “super-secret double consolidation method” — which enables parents to gain access to lower-cost income-driven plans. 

“The gist is that if you consolidate a consolidation loan, and are careful about how you go about doing it, that new loan will be eligible,” Kantrowitz explained. This also entails switching to a different loan servicer and submitting a paper form, among other steps, so the new loan is no longer tied to the original Parent PLUS.
Still, the extra legwork is worthwhile. By switching from income-contingent repayment to SAVE, for example, payments on undergraduate loans could be reduced from 20% of discretionary income to 5%. “It cuts the payment potentially by a factor of four,” Kantrowitz said. “It is a dramatic difference in the monthly loan payments.”
The savings over 20 years could amount to “thousands or even tens of thousands of dollars,” he estimated.
But “there is limited time left to take advantage of it,” Kantrowitz also added. The U.S. Department of Education said it will close this loophole after July 1, 2025.
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Rollovers from 401(k) plans to IRAs will be most affected by a recent U.S. Department of Labor proposal to raise protections for retirement advice, legal experts said.
In 2020, about 5.7 million Americans rolled a total $618 billion into IRAs, according to IRS data.
The Labor Department is concerned financial conflicts cause brokers to give investment advice that’s not in customers’ best interests. Critics say the current regime provides adequate protection.

Bloomberg | Bloomberg | Getty Images

Why Labor Department wants to raise protections

In 2020, about 5.7 million Americans rolled a total $618 billion into IRAs, according to most recent IRS data. That’s more than double the $300 billion rolled over a decade earlier.
IRAs held about $11.5 trillion in 2022, almost double the $6.6 trillion in 401(k) plans, according to the Investment Company Institute. The bulk of those IRA assets come from rollovers.

More than 4 in 10 American households — about 55 million of them — owned IRAs in 2022, ICI said.
Here’s the problem, in the eyes of the Labor Department: 401(k) investors have certain protections that don’t generally extend to IRA investments or the advice to move money to IRAs.
All companies that sponsor a 401(k) plan owe a “fiduciary” duty to their workers, as codified by the Employee Retirement Income Security Act of 1974.

That means they have a legal responsibility to act in workers’ best interests when it comes to things like picking the investment funds for their company 401(k) and ensuring costs are reasonable.
“ERISA fiduciary duties are the highest fiduciary duties under U.S. law,” said Josh Lichtenstein, partner at law firm Ropes & Gray.
Current law exempts most rollover advice from these protections, legal experts said. For example, there’s a waiver for brokers who make a one-time recommendation to a 401(k) investor to roll money to an IRA and don’t maintain a regular relationship thereafter.
Investors also often pay higher fees in IRAs relative to 401(k) plans, according to a recent study by The Pew Charitable Trusts. People who rolled money to an IRA in 2018 will lose $45.5 billion in aggregate savings due to fees and lost earnings over 25 years, Pew found.

Why the new rule would be a ‘sea change’

Julie A. Su, nominee for deputy secretary of Labor, testifies during her Senate Health, Education, Labor and Pensions Committee confirmation hearing in Washington, D.C., on March 16, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

The Labor Department rule, if enacted, would crack down on financial conflicts of interest that may exist when brokers, insurance agents and others recommend that consumers roll their money to an IRA.
That advice typically generates compensation like a commission for the broker or agent, and the Labor Department is concerned those incentives may bias recommendations for certain investments that pay them more but aren’t in an investor’s best interests.
For example, the White House Council of Economic Advisers estimates that consumers lose up to $5 billion a year just due to conflicted advice to roll money to indexed annuities, a type of insurance product.
The Department’s proposed rule would expand ERISA’s fiduciary protections to cover most rollover solicitations, experts said.
It’s “a sea change,” said David Levine, principal at Groom Law Group.
“They’re trying to fill what they see as gaps” in the rules, he added.
He expects a final rule to be issued in the spring and take effect in early summer 2024.

Many rollover transactions are already overseen by other regulatory bodies like the Securities and Exchange Commission and National Association of Insurance Commissioners, experts said.
But the Labor Department standard being proposed is more stringent than those existing regimes, Lichtenstein said.
Critics of the Labor Department rule think the existing measures provide adequate protections for retirement savers, while proponents of the rule argue otherwise.
The Obama administration also tried to raise protections for retirement savers, including those for rollovers, but its rule was killed in court in 2018.
Before that court ruling, the Obama-era regulation resulted in fewer choices for retirement savers, such as fewer commissioned brokers opting to give retirement advice, Lichtenstein said. He would expect a similar dynamic with the current initiative.
“I think it’s hard to argue there’s no increase in investor protection,” Andrew Oringer, partner at The Wagner Law Group, said of the proposal. “As to whether the Department has gone too far or not far enough, I don’t know.” More

Treasury Secretary Janet Yellen on Tuesday announced IRS goals for the 2024 tax filing season.
Yellen expanded upon previous goals, highlighting IRS plans for improved service, technology and a limited free Direct File pilot for the upcoming tax season.
The speech comes less than one week after the Republican-led House passed a bill to provide billions in aid to Israel paired with equal cuts to IRS funding.

U.S. Treasury Secretary Janet Yellen outlines the improvements the IRS will deliver to taxpayers in 2024, during remarks at IRS Headquarters in Washington on Nov. 7, 2023.
Kevin Lamarque | Reuters

1. Expanded taxpayer service

Yellen said the agency made a “tremendous leap forward” during the 2023 tax filing season by significantly reducing phone wait times.
“This filing season, we will build on this foundation and continue expanding services for taxpayers: by phone, online and in person,” she said.

Renewing the agency’s pledge to achieve an 85% level of service, the IRS will aim for average call wait times of five minutes or less.
Yellen also highlighted plans to improve the agency’s online Where’s My Refund? tool, along with more hours of in-person help through Taxpayer Assistance Centers and volunteer tax prep.

2. Boosted technology

The IRS also met its paperless processing initiative goal, which allows taxpayers to electronically upload and respond to all notices.
Paper backlogs have been an issue for the IRS, and the agency estimates more than 94% of individual taxpayers will no longer need to send mail.
“The IRS will reduce errors and storage costs,” Yellen said. “And we’ll speed up processing times for the system as a whole.”
By the start of the filing season, taxpayers will be able to digitally file 20 more forms, including certain business forms, she said.

3. Limited free Direct File pilot

The IRS will also prioritize a limited Direct File pilot, available to certain taxpayers in 13 states to file federal returns for free, Yellen said.
“The pilot is an opportunity to learn,” she said. “We’ll test the taxpayer experience, technology, customer support, state integration and fraud prevention and then apply these insights as we consider scaling to more users.”
The agency is still finalizing the scope of the invitation-only pilot program, but it expects the service will include low- to moderate-income individuals, couples and families who claim the standard deduction.

Yellen’s speech comes less than one week after the Republican-led House passed a bill to provide $14.3 billion in aid to Israel paired with equal cuts to IRS funding championed by newly elected Speaker Mike Johnson, R-La.
It’s the second time House Republicans voted to strip IRS funding in 2023, largely seen as political messaging without support from the Democrat-controlled Senate. The new bill would add $26.8 billion to the U.S. budget deficit, according to a Congressional Budget Office report.
“Playing politics with IRS funding is unacceptable,” Yellen said. “Cutting it would be damaging and irresponsible.”Don’t miss these stories from CNBC PRO: More

Standard monthly Part B premiums will go up by $9.80 per month next year, to $174.70 per month.
If you have a higher income, you may pay a higher monthly premium.
Here’s what to know about managing those premiums, which affect the size of your monthly Social Security check.

Peopleimages | Istock | Getty Images

When to appeal your Medicare Part B premium

You generally can’t have your Medicare Part B premiums adjusted — with one exception, according to Tim Steffen, director of advanced planning at financial services company Baird.
“If something has materially changed in your situation … you can appeal your Medicare premium,” Steffen said.
That applies to events that have caused your income to go down since 2022, such as a divorce, the death of a spouse, the loss of a pension or starting retirement.
You may file an appeal once you receive your benefit notice for 2024.

Medicare Part B premiums are based on beneficiaries’ modified adjusted gross income from two years prior. Therefore, 2024 Part B premiums are based on your 2022 federal tax returns.
That includes adjusted gross income — wages, retirement distributions, investment income, capital gains, rental income and Social Security benefits — as well as tax-exempt interest.
If you have municipal bond interest that you don’t pay federal taxes on because it is exempt, that can still prompt higher Medicare Part B premiums, Steffen said.

$1 in extra income can mean a higher premium

Managing Part B premium costs can be tricky, because even just $1 in additional income could push you into a higher bracket if you are close to the thresholds, Steffen noted.
Certain tax management strategies, such as Roth individual retirement account conversions, will trigger higher taxable income for the year the transaction was completed. Consequently, that may also result in a higher Medicare Part B premium.
“You can’t really lower your premium, you can just avoid increasing it,” Steffen said.
It helps to stay mindful of the income break points, he said. However, be sure to keep in mind that brackets for future years will change. More