Technical topics regarding tax preparation.
25-Nov-2022 7:33pm
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In 2021 tp and spouse sold their residence at a significant profit increasing their agi from the normal $130k (2020) to $381k (2021). Now comes the medicare letter / monthly increase (2023) for tp and spouse (each) to >$400/mo for 2022. Will the one time profit from the sale of their residence qualify for a waiver ... I didn't see that as a reason for waiver. ty
25-Nov-2022 8:35pm
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25-Nov-2022 8:48pm
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That is a non qualifying life changing event. They can appeal, but don’t hold your breath.
HI 01120.005 Life Changing Events:
There are situations where a beneficiary may request the use of a more recent tax year for a new initial determination because a one-time event caused an increase in his or her income for the tax year we are using to impose IRMAA. Consider this type of event as a non-qualifying event. Some examples of one-time income that cause an increase and are non-qualifying events (NQEs) include:
•Capital gains from the sale of property;
•Lottery winnings;
•Casino winnings;
•Conversion of an IRA; or
•Cashing bonds.
26-Nov-2022 11:15am
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ok, so is this a one year situation? for 2022 tax year their income drops back to around $130k....
ty
26-Nov-2022 11:37am
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Yes, it’s a one-year hit but if they were on Medicare in the years there was no COLA on social security payments, they will go back to what the premium would have been if Medicare premiums had been increased in those years.
29-Nov-2022 1:51pm
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