Means Test and expenses

[chad9162]

So I've been told to use the last years tax liability (federal and state) instead of current rates. Does this also apply to Soical Security, Medicare, and my employer retirement account (mandatory)? Do I just divide last years total by 12 instead of using current rates?

Also, when it comes to "standard" vs "actual" expenses.....do I get to use the standard automatically if I'm over the median income?

Thanks Chad

[laurannm]

Medicare you can pull right from your current pay check...take the total over the past 6 months and divide by 6.

Same with retirement account if it is mandatory

Not sure on SS

[chad9162]

Okay thanks...I've also read that business owners can reduce their income by re-investing into their business. The reason I ask is my wife is a daycare provider. Can I reduce her income by buying things for the business?