IRMAA Medicare surcharge and the American Rescue Plan Act of 2021

[columbopdx]

I filed my tax return in Feb 2021, before the American Rescue Plan Act was passed in March. This caused my AGI to reduce by $9300. It took until November for the IRS to adjust it. Before that occurred, the Social Security Administration (which calculates the IRMAA surcharges for Medicare part B and Part D) had already pulled my AGI (which was not correct based on the American Rescue Plan Act). They used this to calculate my IRMAA, and listed the amount in my letter just above the table of additional charges and income ranges. I immediately called my SSA office, and they said file form SSA44, which I did. [Note: Form SSA44 is from Dec 2020, and includes the table and ranges for  2021, not 2022]. My SSA office denied my request to use the correct AGI for the calculation. 

Has anyone else had this happen where the adjustment caused them to drop a bracket in the surcharge range? How did you get the surcharge adjusted?

[columbopdx]

I have now filed the next level of appeal, which is form ssa 561. I should hear back by Valentine's day.

[columbopdx]

My issue is fixed and the correct IRMAA is now in effect.

[GailL1]

Was this for the retroactive ARA change in the reportable amount of unemployment benefits for TY 2020?  Make sure that it is applicable to your income range.

IRS.gov - IRS offers overview of tax provisions in American Rescue Plan; retroactive tax benefits he... - 

Notice that this IRS notice says:

Retroactive changes for 2020

Some unemployment compensation not taxed for many

For tax year 2020 only, the first $10,200 of unemployment compensation is not taxable for most households. This tax benefit is only available to those whose modified adjusted gross income is below $150,000 during 2020. The same income cap applies to all filing statuses.

This means that those eligible who haven't filed a 2020 return yet can subtract the first $10,200 from the total compensation received and only include the difference in their taxable income. For couples where both spouses received unemployment compensation, each spouse can subtract $10,200. Details, including a worksheet, are available at IRS.gov/form1040.

For any eligible taxpayer who has already filed and reported their compensation as fully taxable, the IRS is automatically adjusting their return and providing them this tax benefit. Refunds, based on this adjustment, are being issued in May and continuing through the summer.

If this is the reason, whether the IRS adjusted this amount "in-house", or you filed an amended return or you did the worksheet (see the embedded IRS links above)- that is the proof that you need, along with the above IRS newsroom advisory.  

You can file an appeal with this info to back up your claim:

HHS.gov - Medicare Part B Premium Appeals

Hope this helps - Good Luck - 

[columbopdx · Accepted solution]

As of Jan 14, 2022, they have updated the SSA 44 appeal form to use the correct chart for 2022 included in the new benefits amount letter beneficiaries receive in Dec 2021.