Very Specific IRMAA Question

[Deleted]

I know that technically this isn't a tax matter, but since the Medicare Income-Related Monthly Adjustment Amount (IRMAA) is based on MAGI, maybe someone here will know.

DH died late last year (2016). My Medicare coverage starts 1/1/2018; I wasn't old enough to be eligible this year and have a private policy for 2017. The 2018 IRMAA surcharge will be based on 2016 AGI which, in my/our case, is a joint return. Most of the income was investment income on investments in my name although DH got SS. Our joint income was high enough to trigger an IRMAA surcharge even at the higher Couples threshold.

So- will there be any adjustment to our 2016 MAGI used to determine IRMAA since (presumably) the Single IRMAA brackets apply to me? 

Thanks.

[wvugurl26]

Apparently you can't get an adjustment for 2018. The life changing event has to be in the same year or an earlier year than the tax year that's used to decide your premiums. It looks like for 2019, you could apply for an adjustment based on your DH's death in 2017.

[Deleted]

Oct 31, 2017 8:40:58 GMT -5 wvugurl26 said:

Apparently you can't get an adjustment for 2018. The life changing event has to be in the same year or an earlier year than the tax year that's used to decide your premiums. It looks like for 2019, you could apply for an adjustment based on your DH's death in 2017.

Thanks.  Does that mean that our joint MAGI for 2016 will be used but the Single brackets for MAGI would apply?  If that's the case I better double my estimate of my Medicare B premium in next year's budget.  Bummer.

[wvugurl26]

Oct 31, 2017 9:09:44 GMT -5 @athena53 said:

Oct 31, 2017 8:40:58 GMT -5 wvugurl26 said:

Apparently you can't get an adjustment for 2018. The life changing event has to be in the same year or an earlier year than the tax year that's used to decide your premiums. It looks like for 2019, you could apply for an adjustment based on your DH's death in 2017.

Thanks.  Does that mean that our joint MAGI for 2016 will be used but the Single brackets for MAGI would apply?  If that's the case I better double my estimate of my Medicare B premium in next year's budget.  Bummer.

That I'm not sure about. It looks like it's based on tax filing status in that year. I would double check with your local social security office once you get your notice of Medicare premiums.

Check out social security publications 05-10507 and 05-10536. I'm on my phone so linking is difficult.

The one states if your income change was in the last three months of the calendar year and you file by 3/31 they might be able to reduce it. Which really makes no sense to me. I would definitely check with your local office once you get that notice of higher premiums.

[Deleted]

Thanks.  I doubt if I'll be able to get them to change it based on DH's death- I can't argue that my income went down as a result.  He was getting SS, I wasn't, and now I get his SS as a Survivor Benefit so that's a wash.  The rest is mostly driven by investment results from year to year.

I'm still not sure from reading those publications whether the Married brackets or the Single ones for IRMAA apply to me.  I'm hoping that, since we filed jointly in 2016 they'll apply the Married brackets, which would result in a lower surcharge.  I'll get nailed in 2019 when they base IRMAA on my 2017 return but no use worrying about that now.