Can an adjustment be made to delete the double taxation of Medicare Part B premium that is reimbursed in part by California's state employee retirement system?

[waltschaff]

California's state employee retirement system reimburses retirees a portion of a retiree's Social Security Medicare Part B premium.  However, the reimbursement is treated as gross and taxable income on the retiree's Form 1099-R.  Consequently, the reimbursement is included twice in the retiree's personal income tax filing--once as part of the SSA's benefit income statement and again as part of the retiree's pension distribution--thus double taxation. Can an adjustment be made to delete one of the two sources of "income"?  Thank you. 

[MarilynG · Accepted solution]

The Part B Premium shown on your SSA-1099 is treated as a deduction, and this amount is automatically moved to the Medical Expenses section.

Your income on the SSA-1099 is generally not taxed, unless you have over the amount of 'Other Income' for your filing status, and even then, only up to 85%. 

On your 1099-R, the amount of medical insurance premiums paid may be shown in Box 5, where it is normally subtracted from the Distribution shown in Box 1, so it is not included in taxable income.

If this is not the case and the Distribution in Box 1 includes reimbursement for your Part B premium, you could adjust your medical expenses; however, remember that you are already receiving a deduction for the amount of Part B premiums.  

Here's more info:

https://ttlc.intuit.com/replies/4774797

[squansurf]

I have a question regarding the reimbursement of IRMAA fees in a subsequent year. The SSA-1099 includes the Medicare B and D payments for the current tax year. Usually in March of the following year I can apply for reimbursement of the previous year's IRMAA and I will receive a check as payment. Where do I record the receipt of the IRMAA reimbursement. If I do not have sufficient medical expenses to allow for medical deductions is seems a moot point. I would assume the reimbursement would remove the deductibility of the tax year's IRMAA from medical expenses - but I do not see any place in turbo tax to report the reimbursement.