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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10148
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Because of a house sale in 2013 I paid income related

Customer Question

because of a house sale in 2013 I paid income related premiums during 2015,and consequently had my Medicare part B contribution increased to $121.80. With the house sale my Part B would be $104.90. I was previously informed that the one of income from a sale would affect Part B premium for only one year. Are Social Security Administration in error for insisting that my premium should stay at the higher figure for the rest of my life?
Submitted: 2 months ago.
Category: Tax
Expert:  Lane replied 2 months ago.

Hi, My names's Lane. I can help you with this.

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986…

Please bear with me for a moment, while I prepare your response.

Expert:  Lane replied 2 months ago.

No, the person that told you this is completely incorrect.

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SSA reviews the eacch fall.

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From: https://www.ssa.gov/pubs/EN-05-10507.pdf

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"We use your modified adjusted gross income (MAGI) from your federal income tax return to determine your income-related monthly adjustment amounts. Your MAGI is the total of your adjusted gross income and tax-exempt interest income.

Each fall, when we ask the IRS for information to determine next year’s premiums, we ask for tax information to verify your reports of changes affecting your income-related monthly adjustment amounts, if any."

Expert:  Lane replied 2 months ago.

(Sorry for the typos ... the system is not letting me edit for some reason).

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But no, this is revied annually.

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NOW, you MAY have been told that it won't change in a given year becasue of the time it takes for IRS to get the return TO SSA (they will use, for example, a 2014 return for the 2016 determination)

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This happens, of course becasue txes aren't due until April of the following year, (and with an extension, October of the following year). - there have been cases where SSA has used a three uear old return becaus of lag times.

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But to say that your premium will not even go back down, from having a one time event such as this, is completely misguided.

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Please let me know if you have any questions at all.

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And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

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Thank you,

Lane

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