IRMAA - how to avoid with this xtra tax

[CincyDave]

Shouldn't this be moved to the Funny Joke thread?

Ha Ha, I suppose you're right

 

[sheehs1]

My SSA-44 was denied. I could prove my income level from prior year was below what they were charging me for. Didn't meet one of the qualifiying events. I also have to declare Sub-s income I don't actually receive. No help there either!
So this year for 2023, I am expecting a one tier drop in IRMA charges (from the one they denied but is clearly shown on my tax return for 2021). Next year my IRMA tier will go back up.

 

[stedmakr]

I'm a volunteer SHIP Medicare counselor and would like to offer a couple of thoughts about IRMAA appeals. My wife and I have helped 7 or 8 beneficiaries file appeals this year and every one was approved. The process is very straight forward and doesn't take much time.

There are 8 reasons that are acceptable for an appeal. It is simply a matter of checking a box on SSA form (SSA-44) that identifies the reason for the appeal accompanied by some form or supporting documentation. Then the applicant estimates the impact on current year income. It is a simple form.

I recommend that the application also include a straight forward and not overly complicated cover letter for the reviewer that clearly states what is happening.

The SSA-44, supporting documentation and cover letter are then mailed to the local SSA office. Turn around in our area is typically a month or two.

There is an excellent 8 minute video on you tube that explains the process. Search for "IRMAA Appeal".

 

[TheWizard]

...There are 8 reasons that are acceptable for an appeal...

Eight?
Last time I checked there were only SEVEN.
What's the new one?

 

[MissMolly]

I'm a volunteer SHIP Medicare counselor and would like to offer a couple of thoughts about IRMAA appeals. My wife and I have helped 7 or 8 beneficiaries file appeals this year and every one was approved. The process is very straight forward and doesn't take much time.

There are 8 reasons that are acceptable for an appeal. It is simply a matter of checking a box on SSA form (SSA-44) that identifies the reason for the appeal accompanied by some form or supporting documentation. Then the applicant estimates the impact on current year income. It is a simple form.

I recommend that the application also include a straight forward and not overly complicated cover letter for the reviewer that clearly states what is happening.

The SSA-44, supporting documentation and cover letter are then mailed to the local SSA office. Turn around in our area is typically a month or two.

There is an excellent 8 minute video on you tube that explains the process. Search for "IRMAA Appeal".

There are 8

 

[Gonz]

I retired in 2020. Will be 65 in 2023. My birthday is Jan.15.
Wanted to get this done as soon as possible.

Applied for Medigap in September. and received my medigap card two weeks ago.

Applied for Medicare on Oct 2nd.
Received my Medicare card over the weekend. First thing I did was set up Easy Pay.


Just finished applying for Part D this morning and should get that card in less than two weeks.



Made dang sure I kept MAGI below $90k for 2021 and from now on.

But I did remember seeing instructions for people in your situation.



I was tempted to increase my income in 2021 but decide not to. My fear was how slow the government works. So far impressed how smooth things have been so far.
My Cobra ended last month so signing up for two months of ObamaCare to finish the rest of the year went well.

 

[fishfactory]

A friend of mine appealed due to a large roth conversion, and despite that not being on the list of life changing events, his appeal was approved. Why not try appealing ? There is nothing to lose. All they can do is say no !

 

[2retireearly]

Hi folks,
Turning 65 next year, 2023, and will be filing for Medicare .The wife still has a few years before she's eligible. I have a ton of questions on what "plans" to pick but that will be another post.

This post/thread is for "Income-related monthly adjustment amounts (IRMAAs) which are based on a person’s adjusted gross income and may affect their Medicare premiums. When a person makes more than the allowed income, Medicare adds a charge to the Part B premium, Part D (Medicare prescription drug coverage) premium, or both."


They look at your tax filings from 2 years ago to determine how much to increase your Medicare costs. In 2021 we sold the rental and paid ridiculous taxes both federal and state, at least for us.


So when I sign up for Medicare in 2023 they will look at the tax filings for the 2021 year, which is not our normal income, to determine if I exceed IRMAA's allowed income. I know for that year we do exceed the allowed income and will pay more for Medicare. Ouch


Any ideas on how I can have them look at another years' tax filings?
Can I petition Medicare on how to work for a fairer resolution?
Would they just use my income from the tax filing year?

How would they handle the capital gains on the sale of the rental, split it since the wife won't be filing?
I'm going crazy with all this.


I'm hoping someone on this sight has some insight on this issue.

I had an unusually large income in 2020, so my 1st year of Medicare in 2022, was to be about 5 times the normal $170 PLUS 5 times the average part D (they say the avg is $32!), so YIKES. My job was actuarial finance and programming, so I was into the challenge of proving my case, that 2020 was unusual. I sent them along with the standard form on the Medicare site, 15 pages of proof, that though I didn't have a drop in income due to the 7 things, I had an outlier jump in 'income (IRA withdrawal for a specific reason), showing all past years, and what the current and future year's income will be. It was 15 pages. It was when soc sec offices weren't taking appts, so i dropped it in there drop box. I think I just made their eyes glaze over, and 3 days later (!) I got a response in the mail, my IRMAA was reduced to 0.
I am not sure how you could spin it, if yours is based on just a regularly large income, for that year before retirement. You might just have to live with it for a year. They assess this each year, forever, with a 2 year lookback.
Thank Pres Bush for this gift..Nothing like being greatly taxed on income and then taxed again on your Medicare and part D.

 

[RobbieB]

Of course, should be easy to figure out. The government is what, one hundred twenty Trillion in debt.

You think the homeless are coming up with their pocket jingle?

 

[swabby01]

Appeal didn’t yield a thing

 

[sroby2020]

Your "allowed income" terminology is a bit off.

So it's best to manage your AGI each year after 65 using Roth conversions so you don't get into the next higher IRMAA tier...

My desire to complete my Roth conversions is higher than my desire to lower my IRMAA tier. I should have the Roth completed before I turn 72. Then I just have to wait 2 more years to lower my IRMAA tier. My increased Medicare premiums would still be lower than the ACA premiums.

 

[Midpack]

A friend of mine appealed due to a large roth conversion, and despite that not being on the list of life changing events, his appeal was approved. Why not try appealing ? There is nothing to lose. All they can do is say no !

Did your friend also have one or more of the listed life changing events in the same year as the Roth conversion? I found someone who successfully appealed because they were also laid off in the year of the Roth conversion.

 

[fishfactory]

Hi Midpack. No, my friend did not have any other life changing events. He filed the appeal using the roth conversion reason and was successful. We are dealing with bureaucrats, so he may have just slipped through the cracks, but it is worth trying as the only downside is a no response.

 

[TheWizard]

A friend of mine appealed due to a large roth conversion, and despite that not being on the list of life changing events, his appeal was approved. Why not try appealing ? There is nothing to lose. All they can do is say no !

Velly intelesting...

 

[hmango]

I had a similar situation. We sold a rental property in 2020 and so our income was super high that year (plus lots of taxes!). Then, I retired in 2021 and so my income was much lower that year. "Stop Working" is one of the allowable exemptions and so I submitted form SSA-44 and requested they use 2021 instead of 2020. This was approved and they waived the IRMAA costs.

 

[CincyDave]

Based on some of these appeal approvals, it sounds like it may be the luck of the draw who you talk to.

 

[Sunset]

I had a similar situation. We sold a rental property in 2020 and so our income was super high that year (plus lots of taxes!). Then, I retired in 2021 and so my income was much lower that year. "Stop Working" is one of the allowable exemptions and so I submitted form SSA-44 and requested they use 2021 instead of 2020. This was approved and they waived the IRMAA costs.

I would have thought the [] Loss of income-producing property

Would have qualified via selling a rental to ignore it (I sure hope so for the future).

 

[Big_Hitter]

Any ideas on how I can have them look at another years' tax filings?
Can I petition Medicare on how to work for a fairer resolution?
Would they just use my income from the tax filing year?

I filed with SS to get it reduced. It's not atypical.

 

[ncbill]

Hi folks,
Turning 65 next year, 2023, and will be filing for Medicare .The wife still has a few years before she's eligible. I have a ton of questions on what "plans" to pick but that will be another post.

This post/thread is for "Income-related monthly adjustment amounts (IRMAAs) which are based on a person’s adjusted gross income and may affect their Medicare premiums. When a person makes more than the allowed income, Medicare adds a charge to the Part B premium, Part D (Medicare prescription drug coverage) premium, or both."


They look at your tax filings from 2 years ago to determine how much to increase your Medicare costs. In 2021 we sold the rental and paid ridiculous taxes both federal and state, at least for us.


So when I sign up for Medicare in 2023 they will look at the tax filings for the 2021 year, which is not our normal income, to determine if I exceed IRMAA's allowed income. I know for that year we do exceed the allowed income and will pay more for Medicare. Ouch


Any ideas on how I can have them look at another years' tax filings?
Can I petition Medicare on how to work for a fairer resolution?
Would they just use my income from the tax filing year?

How would they handle the capital gains on the sale of the rental, split it since the wife won't be filing?
I'm going crazy with all this.


I'm hoping someone on this sight has some insight on this issue.

Appeal & check the box for "loss of income-producing property"

 

[audreyh1]

Clever - selling a rental does mean loss of income producing property = loss of future income.

 

[Midpack]

Hi Midpack. No, my friend did not have any other life changing events. He filed the appeal using the roth conversion reason and was successful. We are dealing with bureaucrats, so he may have just slipped through the cracks, but it is worth trying as the only downside is a no response.

OK. It's well documented that Roth conversions are NOT an accepted basis to avoid IRMAA penalties, clearly not a "life-changing event" - the question has been asked thousands of times. So I'm not going to bother since all our Fed agencies are understaffed and overwhelmed since the pandemic. Just try to talk with anyone at the IRS or TreasuryDirect...