@bogeyman62 So here's what must have happened:
Your Medicare Part B payment was withheld from your SS payment pre-tax. So when they refunded it, they withheld the tax that would have been due on the amount of your refund. (Based on what calculation...I have no idea).
I'm assuming you haven't received any type of tax document (separate from you SSA-1099) relating to this refund/tax withholding. There must be some way to report, at least, the income tax withheld.
All I can advise is that you contact your local SSA office for instructions on how to handle this issue.
*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
