Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Medicare premiums increase for AGI over 85K

Highlighted
Level 5

Since RMD is not required in 2020, that should lower my client's AGI under the 85K limit. How can I request Social Security to reduce the premium? I have done that in the past when a client retired, when I could prove income will decrease, but I can't remember how I did it. Any advice?

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 12

You can't file for a change due to "decreased income"; it is only for a "life changing event".  See the top of page 2 of Form SSA-44:

https://www.ssa.gov/forms/ssa-44-ext.pdf

 

But in a couple of years, they will look at your client's lower income and decrease the premium based on that year's AGI.   If your client's income goes back up, so will the Medicare premium the next year.

View solution in original post

5 Replies 5
Highlighted
Level 12

You can't file for a change due to "decreased income"; it is only for a "life changing event".  See the top of page 2 of Form SSA-44:

https://www.ssa.gov/forms/ssa-44-ext.pdf

 

But in a couple of years, they will look at your client's lower income and decrease the premium based on that year's AGI.   If your client's income goes back up, so will the Medicare premium the next year.

View solution in original post

Highlighted
Level 5

Thank you!

Very helpful.

0 Cheers
Highlighted
Level 12

It's a 2-year lookback for IRMAA. Reduced income in 2020 won't be used until Medicare year 2022. The new limit is $87,000.

https://www.medicare.gov/your-medicare-costs/part-b-costs

 

*******************************
"Level Up" is a gaming function, not a real life function.
Highlighted
Level 3

Just a thought.  Could you use the "Loss of Income-Producing Property" life event?  I believe the intent of Congress to grant the choice in RMD this year was the volatility in the stock market.  This would be beyond the taxpayers control.  In my experience, if the SS-44 is documented properly to show that the income has been or will be reduced in the current or upcoming year, the SSA will reduce the IRMAA.  It works best if the client makes an appointment with the local SSA office.  Don't know if they are having face-to-face meetings now but maybe they can work with someone local.

0 Cheers
Highlighted
Level 12

It's not beyond the taxpayer's control to exercise the option to skip RMD this year. That isn't a permanent loss of income producing property; congress isn't keeping them from their funds. I was told by a local Aging Services rep that Traditional IRA conversions to Roth that affect IRMAA can be appealed, but another person told me that is not a successful appeal. You can appeal anything with a provision for appeals, of course.

*******************************
"Level Up" is a gaming function, not a real life function.