2023 IRMAA is Based on Which Income Year?

[Another Reader]

I received my benefit letter from SSA today. It states my 2023 IRMAA is based on my 2020 income. Huh? For 2022 it was based on 2020 income. I sold a property that year and the income was much higher than 2021.

All the online references cite 2021 returns as the comparison income year. Not looking forward to a telephone conversation or a trip to the local SSA office. Am I missing something that allows them to do this?

TIA!

 

[Trooper]

2023 will be my first year on Medicare, but everything I've read says IRMAA is a 2-year lookback. Let us know what you find out.

 

[audreyh1]

Should be based on 2021. Did they not get your 2021 return?

 

[nate2953]

It’ll be based off of Premium Year-2 (PY-2) data. If PY-2 data is not available from the IRS they will use PY-3 data. Simply contact SSA and provide them with a copy of your tax returns for PY-2 (2021) and all will be fine.

 

[Another Reader]

The letter states on Page 2 that the calculation is based on 2020 income and the numbers cited are the 2020 values. If a couple of million people got this letter, there will be some 'splaining to do by SSA.

 

[nate2953]

https://secure.ssa.gov/apps10/poms.nsf/lnx/0601120055


HI 01120.055 Beneficiary Provides 2 year Old Tax Data When SSA Used 3 year Old Tax Data to Determine the IRMAA.

Easy peasy

 

[nate2953]

The letter states on Page 2 that the calculation is based on 2020 income and the numbers cited are the 2020 values. If a couple of million people got this letter, there will be some 'splaining to do by SSA.

No splainin necessary. The IRS provided SSA with PY-3 data in *your* specific case. The reason why is irrelevant. The solution has been presented.

 

[Another Reader]

Should be based on 2021. Did they not get your 2021 return?

They have it and they owe me money they have sat on since the return was filed. They sent a request for information (verification of identity per the CPA) which the CPA provided in early June. No communication since. I went to the Congressional representative's office to expedite this a couple of months ago. No response yet. That hold up may be the problem. Sigh...

 

[nate2953]

1) provide SSA with your signed 2021 tax return
2) no more problem with IRMAA

 

[Another Reader]

No splainin necessary. The IRS provided SSA with PY-3 data in *your* specific case. The reason why is irrelevant. The solution has been presented.

Apparently the IRS is sitting on the return, which I have been trying to push through, as has the CPA. I can send the SSA a copy of the return signed by the CPA, but the IRS stamp of approval will not be on the return. Not sure if they will accept that.

 

[nate2953]

Did you read the link provided that specifically addresses your concern?

 

[nate2953]

C. What Evidence Is Needed To Support The Change

If the current IRMAA determination is based on tax information from three years prior to the current premium year, SSA will accept a signed copy of the beneficiary's filed Federal income tax return for the tax year that is two years prior to the premium year.

NOTE:

If a beneficiary alleges electronic filing, ask the beneficiary to print and sign a copy of the electronic return.

You print the tax return. You sign it. You give it to SSA.

 

[Another Reader]

1) provide SSA with your signed 2021 tax return
2) no more problem with IRMAA

As a former bureaucrat more than conversant with local property taxes, the copy of the SSA manual is very helpful. I will get on this tomorrow. Thanks!

 

[nate2953]

No problem. Its a unfortunate issue you have to go about it this way to get it corrected, but the good news is, it is relatively straight forward. Especially having the policy/playbook/manual to help you should get it resolved fairly easily.

 

[audreyh1]

They have it and they owe me money they have sat on since the return was filed. They sent a request for information (verification of identity per the CPA) which the CPA provided in early June. No communication since. I went to the Congressional representative's office to expedite this a couple of months ago. No response yet. That hold up may be the problem. Sigh...

I think that explains it. There is still some delay with your 2021 return and it has affected your 2023 IRMAA.